Distribution Center Audit for Leading 3PL Provider
Comprehensive wall-to-wall inventory verification and reconciliation across a multi-client distribution center network serving major retail and e-commerce brands.
The Challenge
A leading third-party logistics (3PL) provider managing 12 distribution centers across the United States needed to conduct comprehensive inventory audits for multiple clients while maintaining continuous operations and meeting strict service level agreements.
Multi-Client Complexity
Managing inventory for 47 different clients with varying SKU counts, storage requirements, and reporting standards across shared warehouse space.
Inventory Discrepancies
System records showed 4.2% variance from physical counts, resulting in client disputes, chargebacks, and potential contract losses.
Operational Continuity
Audits needed to be conducted without disrupting 24/7 operations, daily shipments, and receiving activities across all facilities.
Compliance Requirements
Multiple clients required SOC 2 compliance, FDA regulations for food/pharma products, and specific audit documentation standards.
Our Solution
A phased, client-specific audit approach with advanced technology and minimal operational disruption.
Strategic Planning
- Client-by-client audit scheduling to minimize conflicts
- Off-peak hour counting for high-velocity SKUs
- Zone-based approach for continuous operations
- Coordination with warehouse management teams
Technology Deployment
- Mobile scanning devices for real-time data capture
- RFID readers for high-value and serialized items
- Cloud-based audit platform with client portals
- Integration with WMS for automated reconciliation
Quality Assurance
- Dual-count verification for high-value inventory
- Blind counting methodology to ensure accuracy
- Real-time variance investigation and resolution
- Client-specific reporting and documentation
Audit Execution Process
Outstanding Results
Significant improvements in inventory accuracy, client satisfaction, and operational efficiency.
Client Benefits
- Improved AccuracyAverage client inventory accuracy improved from 95.8% to 99.6%
- Reduced Chargebacks73% reduction in client chargebacks due to inventory discrepancies
- Enhanced VisibilityReal-time audit dashboards providing transparency to all clients
- Compliance DocumentationComprehensive audit trails meeting SOC 2 and FDA requirements
Operational Improvements
- Process OptimizationIdentified and corrected 127 process inefficiencies across facilities
- Staff TrainingProvided best practices training to 340+ warehouse personnel
- Technology IntegrationSeamless integration with 8 different WMS platforms
- Contract Retention100% client contract renewal rate following audit completion
"CPCON's ability to conduct comprehensive audits across our multi-client facilities without disrupting operations was remarkable. Their technology-driven approach and attention to detail have significantly improved our inventory accuracy and client satisfaction."
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