Established in 1976, ARAG is now recognised worldwide as the main reference point in the spraying accessories field and in the precision farming area. ARAG's catalogue boasts more than 4,500 items and offers a complete choice without equal in the agricultural market. ARAG has a wide sales network in over 110 countries all over the world, with three overseas subsidiaries based in Australia, Argentina and Brazil and employees of over 400 people.
REQUIREMENT
ARAG's product demand is high and seasonal, so having an accurate inventory system is critical to the business. ARAG required RGIS to provide the following:
- Wall-to-wall warehouse count
- Stock data that could be loaded into the MYOB Advanced Stock Management System
- Identify variances
- To be completed in a short time frame in comparison to the internal stocktake, which previously was between three and four days
- No disruption to business
- To be able to work with warehouse staff as one team
SOLUTION
ARAG partnered with RGIS to complete the accurate inventory data project, and RGIS provided the following:
- Scheduled a team of 15 experienced RGIS auditors
- Details checked included the product ID, barcode number, description, department, cost value, bin location and stock on hand quantity
- Variance checking completed
- Any product with no product code was reported to an ARAG staff member, and a code provided
RESULTS
ARAG found by outsourcing the accurate inventory data project to RGIS, the following results were achieved:
- Checked 4,000 different SKUs
- The top 10 variances by value and by quantity were checked
- Missing stock was located
- Incorrect part numbers were identified on some products. Some stock had changed part numbers and as a result old stock had been sitting on site for more than five years – previously undetected
- Products found during stocktake that were in the wrong bin location. ARAG were able to reassign these products to the correct bin. Previously, these items would never have been picked because warehouse staff would not locate the product
- Stock not counted was zeroed in the inventory system, this helped improve the integrity of the product master file stock on hand values and assisted with writing off old products to ensure a cleaner overall inventory syst