High levels of stock loss
The client was experiencing high levels of stock loss and suffered an instance of fraud and stock theft. We were engaged to analyse levels of adjustments made to their stock and create a process that provided early warning of potential problems.
We developed a stock adjustment monitoring process that:
- Used linear regression models to set benchmark levels of adjustment expected across the different warehouses and product ranges
- Developed a monitoring algorithm to identify where levels of adjustment were deviating from expected ranges
- Overlayed control rules to flag exceptions
- Developed a dashboard to highlight branches and product ranges that were a cause for concern