Sainsbury Inventory Management by khi66344


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Unrivaled Reliability: The RGIS Difference

Sainsbury’s, one of the largest food retailers in the United Kingdom, struggled
with two significant inventory issues:

• Absence of a reliable system for counting product inventory
• Sub-optimal availability of products on store shelves

After agreeing to partner with RGIS for its inventory management needs eighteen
months ago, Sainsbury’s has experienced dramatic improvements in both the
accuracy of its data collection and its product availability. Consequently,
Sainsbury’s has experienced increased profitability.


Sainsbury’s was established in 1869 by John James and Mary Ann Sainsbury and it is
the United Kingdom’s longest-standing major food retailing chain. Sainsbury’s employs
over 153,000 people, and their supermarkets offer approximately 30,000 products, 50%
of which are Sainsbury’s own brand. With 727 stores throughout the United Kingdom and
over 14 million customers serviced per week, Sainsbury’s success depends in large part upon the accurate counting of
product stock. In addition to a wide range of quality food and grocery products, many stores offer delicatessen, meat and
fish counters, pharmacies, coffee shops, restaurants and gas stations.

RGIS is the largest and most reliable provider of inventory management services in the world. With more than 400 offices
and over 40,000 highly-trained employees, RGIS offers neighborhood service coupled with international coverage.
Decades of experience, unparalleled quality control processes, cutting-edge proprietary technology, superior training and
an obsession with accuracy, lead more businesses to choose RGIS for their inventory counts than any other inventory
company in the world. Since 1958, RGIS has performed over 4 million inventory audits, meticulously counting more than
400 billion items. Whether it is for a single-location business or the largest retailer in the world, RGIS performs retail,
warehouse, distribution, and specialty inventory audits throughout North America, South America and Europe.

Unrivaled Reliability: The RGIS Difference


              After operating without a third-party inventory auditor for ten years, Sainsbury’s retailers lacked a sound
              process for ensuring that accurate counts of product were recorded. The absence of a reliable system pre-
              vented Sainsbury’s from accurately measuring its inventory, thereby limiting their ability to control product
              shrinkage. This, in turn, led to lower earnings. Also present was the reluctance by store personnel to change
              store procedures and accept responsibility for accurate store reporting.

              Increased accuracy in stock reporting—and added efficiency in moving store product from stock to shelf for
              increased availability—were considered by Sainsbury’s senior management to be paramount to the success
              of Sainsbury’s stores. Without the necessary capabilities in-house, Sainsbury looked to RGIS for solutions.


              The RGIS Process
              The key to RGIS’s success is the ability to understand its clients’ core business. In drawing upon thorough
              knowledge of Sainsbury’s operational strengths and weaknesses, RGIS created a customized system com-
              prised of not only the actual inventory procedure, but pre-inventory and post-inventory procedures as well:

              RGIS personnel analyzed Client’s stock room and sales floor facilities.
              Client’s store-level staff were educated in stock positioning and data management methods.
              A Strategic plan for capturing all product data was developed.

              RGIS personnel performed store product count.
              Strategic plan developed during pre-inventory stage was executed.
              Product reports were generated in real time using proprietary
              hardware and software.

              Product reports were analyzed in cooperation with Client.
              Recommendations for reducing product shrinkage and increasing
              in-store product availability were presented to Client.

In the 18 months since beginning its partnership with RGIS, Sainsbury’s has achieved the following:

•   Acquired real-time reports of inventory shrinkage rates broken down by store, department, and product
•   Ranked consistently #1 in The Grocer magazine for “Best Product Availability”
•   Accounted for $1.7 billion in stock over the course of 1,300 inventory audits
•   Informed all Sainsbury employees that the company is highly committed to loss prevention
•   Increased its overall ‘product-to-shelf’ rate
•   Customized specific loss-prevention procedures based on actual store-level data
•   Established new benchmarks for their retail business
•   Increased profitability through less shrinkage and heightened sales

In applying its system to Sainsbury’s retailers in the United Kingdom, RGIS exhibited more than a passion for under-
standing its client’s operational challenges. RGIS also revealed a resolve to assimilate into the Sainsbury’s culture, to
understand how its people think at the regional level, tailoring its management style to complement the strengths of
Sainsbury’s workforce. Moreover, Sainsbury’s has applauded the management skills of RGIS personnel in implementing
new store software that simplifies data collection and streamlines post-inventory reporting.

“A problem shared is a problem halved,” noted (Inventory Count Operations Manager) James Pitt recently, calling
RGIS a “one-stop” solution to Sainsbury’s problems with inventory counting and product availability.

Talks are currently underway to extend the RGIS - Sainsbury inventory partnership and to collectively explore
additional areas of business, such as merchandising and temporary employee services.

                                                    RGIS, LLC.
                                                2000 E. Taylor Rd.
                                              Auburn Hills, MI 48326


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