Retail & D2C Inventory Audits

An inventory audit cross-checks your actual stock against your records. When numbers diverge, the leading causes are shoplifting, employee theft, administrative errors, vendor fraud, process errors and product damage. KGAC scans 4,000+ SKUs per auditor per day across stores, warehouses and D2C fulfilment centres. Our Services and Deliverables for D2C brands and warehouses span six focused audit types.

1. Inventory & GRN Audits

Our Inventory and Goods Received Note (GRN) Audits provide a critical verification layer, ensuring the integrity of your stock from the moment it enters your warehouse. We focus on meticulous checks to maintain accurate inventory records and prevent costly discrepancies.

• Goods Verification: Cross-reference physical goods received against Purchase Orders (POs) and Goods Received Notes (GRNs) to confirm every item is accounted for.
• Quantity & SKU Validation: Meticulously validate quantities and SKU codes for each incoming shipment, ensuring precise data entry into your inventory system.
• Discrepancy Identification: Proactively identify any stock mismatches, overages or shortages, allowing for immediate corrective action.
• Accurate Inventory Levels: Guarantee that your inventory management systems reflect true stock levels, leading to better planning and reduced stockouts.
• Operational Efficiency: Improve warehouse operations, reduce manual errors, and enhance the speed and accuracy of order fulfilment.

2. Metrology Audits

Our Metrology Audits focus on the precision and accuracy of your measurement systems. We ensure all tools and processes adhere to the highest standards, safeguarding product quality and ensuring compliance with regulatory requirements.

• Equipment Calibration: Comprehensive examination and calibration of weighing scales and all measuring tools to guarantee accuracy.
• Dimensional Verification: Precise checks of product dimensions to confirm they meet specifications and packaging requirements.
• Weight Accuracy: Validation of actual product weights against declared weights to ensure consistency and prevent discrepancies.
• Legal Metrology Compliance: Verification that all measurement practices comply with national and international legal metrology standards.
• Packaging Integrity: Auditing packaging for correct fill levels, labelling accuracy, and overall compliance with standards.
• Enhanced Quality Assurance: Bolster product quality, reduce costly material waste, and mitigate risks associated with inaccurate measurements.

3. Damaged, Expired & Fashion Audits

Our Damaged, Expired & Fashion Audits provide a critical process for managing unsaleable inventory, protecting brand reputation, and optimising recovery. We conduct comprehensive physical assessments to identify, categorise, and value goods that are damaged, expired, or out of season.

• Physical Assessment: Thorough inspection and classification of all goods identified as damaged, expired, or obsolete.
• Quality & Condition Checks: Detailed evaluation of fashion items for defects, current season relevance, and overall marketability.
• Expiry Date Verification: Strict validation of expiry dates to prevent the sale or distribution of unsafe or non-compliant products.
• Freshness & Compliance: Ensure products meet freshness standards and comply with all industry-specific regulations and safety standards.
• Categorisation & Valuation: Accurate classification and assessment for appropriate write-offs, liquidation, or return-to-vendor processes.
• Loss Mitigation: Minimise financial losses from unsaleable inventory and optimise recovery through timely identification and action.

4. RTV / RTW Audits

Our Return-to-Vendor (RTV) and Return-to-Warehouse (RTW) Audits offer a meticulous review of your return workflows, ensuring transparency, accuracy and optimal recovery for returned goods.

• Workflow Verification: Comprehensive review of RTV and RTW processes to ensure compliance with established policies and procedures.
• Documentation Matching: Verify returned goods against original sales orders, return authorisations and supplier agreements to confirm legitimacy.
• Condition Assessment: Detailed inspection of returned items for damage, defects, or expiry, categorising them for repair, re-stocking, or disposal.
• Accurate Categorisation: Ensure items are correctly classified for return to vendor, liquidation, or reintegration into inventory, optimising recovery value.
• Inventory & Financial Reconciliation: Reconcile physical counts with inventory records and financial accounts, preventing discrepancies and ensuring accurate reporting.
• Loss Prevention: Proactively identify inefficiencies and potential areas of loss within the return management process, enhancing profitability.

5. COD / Compliances Audits

Our COD / Compliance Audits are designed to safeguard your direct-to-consumer (D2C) operations by ensuring the integrity of Cash on Delivery transactions and strict adherence to regulatory and logistical protocols.

• COD Transaction Verification: Rigorous checks on all Cash on Delivery transactions to confirm legitimacy, prevent revenue leakage, and deter fraud.
• Regulatory Adherence: Comprehensive validation that all logistics and delivery processes comply with local and international regulations.
• Proof & Receipt Validation: Meticulous audit of delivery proofs, payment receipts, and customer acknowledgements for accuracy and completeness.
• Dispatch Accuracy: Verification of correct product dispatch, ensuring the right items reach the intended customers.
• Risk Mitigation: Proactive identification and mitigation of operational inefficiencies, financial discrepancies, and potential fraud points.
• Enhanced Trust: Build greater customer confidence through transparent and compliant delivery practices.

6. HOTO, Process Audit & Other Advisory

Our HOTO (Hand Over — Take Over), Process Audit, and Advisory services ensure seamless transitions and optimised operations within your organisation. We meticulously review processes, documentation, and data transfer protocols to maintain continuity, enhance efficiency, and ensure compliance, especially during critical management changes or system implementations.

• HOTO Audits: Conduct thorough checks during leadership or team changes to guarantee smooth transitions, accurate data transfer, and uninterrupted operational continuity.
• Process Flow Evaluation: Comprehensive assessment and mapping of existing process flows to identify bottlenecks, inefficiencies, and areas for improvement.
• Control Mapping: Implement robust control points within processes to mitigate risks and ensure adherence to established policies and procedures.
• Documentation Accuracy: Verify the precision and completeness of all operational documents, standard operating procedures (SOPs), and regulatory records.
• Advisory Support: Provide expert guidance and support for audit readiness, helping teams prepare for external assessments and internal compliance checks.
• Operational Continuity: Safeguard business operations from disruptions, ensuring all critical functions remain effective during and after changes.