Retail Audit Can Help Reduce Cost

The role of internal audit is changing due to the increasing complexity of businesses and the challenges they face. Internal auditors understand that they are expected to perform compliance engagements, reduce costs, and provide information as a strategic advisor to the organization. Today, significant organizations integrate data analysis in different ways, often viewing it as one of the top three priorities of their organization.

A retail audit can help reduce costs

If you want to cut costs and monitor compliance with their local standards, then it makes sense to use tools such as audit retail outlets. The retail audit firms in India provides an opportunity to obtain accurate information data in a relatively simple way, but the procedure for obtaining such information is often complicated by opposition from the administration.

The adoption of data analysis, explains the presentation, benefits audit professionals and their companies in the following areas: Audit of retail trade (retail audit, retail audit) is a study of the presence of goods in stores with the purpose of evaluating their assortment, price policy, advertising activity, layout and merchandising, as well as the quality of personnel work.

Tasks of the project

Audit of retail trade by retail audit companies in Delhi will solve several problems:  Expand the geography of sales, find new dealers, go to the regions Find out what sellers and buyers think about your brand and brands-competitors Evaluate the effectiveness of the distribution of your brands and brands of competitors Optimize the product portfolio Increase the efficiency of an advertising campaign.

The retail audit is most often needed in three cases.

Firstly, to developing retail operators with still unrealized growth potential. Usually, they are interested in optimizing the sales space, increasing the efficiency of staff, reducing costs, improving work with stock.

Secondly, the stagnant retail business. Typically, these are small (up to 8-10 stores) retail networks with a limited administrative apparatus. Most often they need help in restructuring warehouse stocks, motivating staff and monitoring the quality of retail representation.

Thirdly, large retail chains. They are usually interested in assessing the quality of the work of the staff (sellers, merchandisers, and administrators), working with KPI (average check, service ratio, visitor capture rate, sales per sq. M. Area), and brand representation quality in outlets.

The audit process

Depending on the requirements of the company, a list of those retail directions that need to be modernized is compiled. To get a complete picture of what is happening in a particular store or network. It is necessary to investigate all the primary processes: from purchases (pre-order and work with free warehouses - methods, use of matrices, and analysis of sales history) to planning routes in the store, efficient arrangement of equipment and customer loyalty system.

Methods of audit

In the audit process, as a rule, two methods are used: work with documents and work with people.

First, the analysis of financial, managerial, warehouse and other reporting is carried out. Secondly, in-depth interviews-interviews with responsible workers in each of the directions. Thirdly, visits to control the quality of retail outlets (the "mystery shopper" method) or work with a checklist. Fourth, the certification of personnel (the identification of competencies, skills, development potential).

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17 Apr 2018

By Dev Singh
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