Inventory Auditing Best Practices

Replenishment isn’t a side feature, it’s a force multiplier. This is a big mistake. We’ve seen replenishment flows outperform promos and win-back emails combined. They convert better every time with the right timing and zero customer effort. Brands overspend on ads to win new customers, then forget to win them again. They need to predict exactly when a customer needs to repurchase and trigger the message at the perfect moment. Not too soon, not too late. Just right. ++ 𝗪𝗵𝘆 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝗗𝗼𝗻’𝘁 𝗥𝗲𝗼𝗿𝗱𝗲𝗿 – 𝗔𝗻𝗱 𝗛𝗼𝘄 𝘁𝗼 𝗙𝗶𝘅 𝗜𝘁 ++  𝗧𝗵𝗲𝘆 𝗙𝗼𝗿𝗴𝗲𝘁 ✅ Fix: Replenit’s AI triggers proactive reminders across channels exactly when customers are likely to run out, via the brand's own marketing automation vendors, without any migration. 𝗣𝗼𝗼𝗿 𝗧𝗶𝗺𝗶𝗻𝗴 𝗼𝗿 𝗖𝗵𝗮𝗻𝗻𝗲𝗹 ✅ Fix: Multichannel orchestration (SMS, push, email) with personalized timing based on consumption behavior. 𝗡𝗼 𝗖𝗹𝗲𝗮𝗿 𝗜𝗻𝗰𝗲𝗻𝘁𝗶𝘃𝗲 ✅ Fix: Smart upsell bundles, urgency messages (“running low?”), and loyalty integration improve reorder ROI.   • Food & Beverage, pet food and treats, wellness & beauty products hold the highest repeat purchase potential, being very high due to frequent, perishable-driven consumption patterns. • Online groceries and FMCG rank high in habitual/impulsive behavior, presenting a strong fit for mobile push and SMS-driven replenishment campaigns. Brands like Glosel turned a leaky bucket into a revenue engine with Replenit’s AI-powered multichannel replenishment flows. 🚀 53.75% more automation revenue 🛒 +28% higher AOV 📲 100% of the Multichannel approach, email, SMS & Push channel revenue -12X Higher Engagement Rate Why does it work? Because Replenit activates timely, no-effort reorders across email, SMS, push, and more. Most brands forget to remind customers. ++ 𝟯 𝗧𝗮𝗰𝘁𝗶𝗰𝗮𝗹 𝗥𝗲𝗰𝗼𝗺𝗺𝗲𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗥𝗲𝘁𝗮𝗶𝗹𝗲𝗿𝘀 ++ 1️⃣ Make Replenishment an Always-On Growth Engine Don’t treat it as a postscript. Integrate replenishment flows as a core revenue pillar in your retention strategy. 2️⃣ Automate Across Channels With Smart Triggers Use AI-powered solutions to trigger SMS, email, and push notifications based on usage cycles, not guesswork. 3️⃣ Track and Optimize With First-Party Data Loops Leverage Replenit’s dashboards to identify top retention products, run experiments on timing, and iterate continuously. 𝗧𝗼 𝗮𝗰𝗰𝗲𝘀𝘀 𝗮𝗹𝗹 𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗼𝗹𝗹𝗼𝘄 ecommert® 𝗮𝗻𝗱 𝗷𝗼𝗶𝗻 𝟭𝟰,𝟮𝟬𝟬+ 𝗖𝗣𝗚, 𝗿𝗲𝘁𝗮𝗶𝗹, 𝗮𝗻𝗱 𝗠𝗮𝗿𝗧𝗲𝗰𝗵 𝗲𝘅𝗲𝗰𝘂𝘁𝗶𝘃𝗲𝘀 𝘄𝗵𝗼 𝘀𝘂𝗯𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝘁𝗼 𝗲𝗰𝗼𝗺𝗺𝗲𝗿𝘁® : 𝗖𝗣𝗚 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗚𝗿𝗼𝘄𝘁𝗵 𝗻𝗲𝘄𝘀𝗹𝗲𝘁𝘁𝗲𝗿. About ecommert We partner with CPG businesses and leading technology companies of all sizes to accelerate growth through AI-driven digital commerce solutions. #CPG #ecommerce #Replenishment #AI #FMCG

📦 Understanding Re-Order Point (ROP) and Replenishment in Warehouse Management 📦 In supply chain and warehouse management, knowing when to reorder stock is crucial for maintaining the right balance between inventory availability and cost efficiency. One of the key concepts in inventory management is the Re-Order Point (ROP). But how do you calculate it accurately? And what are the most effective replenishment strategies? 🔹 What is the Re-Order Point (ROP)? ROP is the threshold at which stock must be replenished to prevent shortages before the next delivery arrives. In other words, it is the minimum inventory level at which a new purchase order should be placed. 🔢 Basic ROP Formula: Without Safety Stock: 📌 ROP = Lead Time (Days) × Average Daily Consumption With Safety Stock: 📌 ROP = (Lead Time × Average Daily Consumption) + Safety Stock 🛠 Example Case: A warehouse has a daily material consumption of 10 units, with a procurement lead time of 7 days. 📌 ROP = 7 × 10 = 70 So, when the stock reaches 70 units, the company should immediately reorder to avoid running out of stock while waiting for the next delivery. 🔹 Effective Replenishment Strategies Determining the ROP alone is not enough. Businesses must also adopt the right replenishment strategy to ensure a steady inventory flow without excessive overstocking. Here are three common strategies: 1️⃣ Just-In-Time (JIT) This approach ensures that stock is ordered only when it is needed. It is suitable for businesses with stable demand and reliable suppliers who can deliver quickly. ✅ Pros: Reduces storage costs and minimizes inventory obsolescence. ❌ Challenges: Highly dependent on a smooth supply chain—any disruption can cause stockouts. 2️⃣ Fixed Order Quantity With this method, orders are placed in fixed quantities whenever the stock reaches the ROP. The order quantity is often based on Minimum Order Quantity (MOQ) or Economic Order Quantity (EOQ). ✅ Pros: Helps maintain consistent stock levels. ❌ Challenges: Can lead to overstocking if demand drops unexpectedly. 3️⃣ Periodic Review System Stock levels are reviewed at fixed intervals (e.g., monthly), and orders are placed accordingly. ✅ Pros: Suitable for items with fluctuating demand. ❌ Challenges: If the review period is too long, stockouts may occur before the next replenishment cycle. 🎯 Conclusion Determining the optimal Re-Order Point (ROP) is essential to ensure stock availability without excessive inventory costs. By understanding consumption patterns, lead time, and choosing the right replenishment strategy, warehouse operations can run efficiently and seamlessly, avoiding both stockouts and overstock situations. 🔥 What ROP and replenishment strategy do you use in your warehouse? Let’s discuss in the comments! #Inventory #Warehouse #Supplychain #SCM #Logistic #Rop #Replenishment

Imagine having an assistant who knows all 665 pages of PCAOB guidelines by heart. That's exactly what Josh Poresky has achieved with RAG (Retrieval Augmented Generation)—and it's set to transform how we approach SOX audits. 🤖 In this bonus episode of The Accounting Podcast, Josh explains how RAG allows an AI like ChatGPT to focus on a specific set of documents. By feeding the 665-page PCAOB audit guidelines into a RAG program, he's created a tool that can answer complex audit questions in seconds. Now, you can pose specific scenarios to the bot—like whether a certain password control is an issue—and receive clear, concise answers with explanations. No more sifting through hundreds of pages or waiting for a manager's input! Josh demoed the app he's built with RAG. We explored how it handles a case where management didn't sign off on a user access review. The bot flagged it as a PCAOB issue but also considered whether a compensating control could mitigate it. The best part? RAG prevents the bot from "hallucinating" information that isn't in the documents. When asked about Tom Brady, it simply stated that he wasn't mentioned in the provided context. I'm excited to see how RAG and similar AI techniques can streamline complex accounting processes. It's a great example of how AI will help auditors work smarter, not harder. What other applications do you see for this technology in accounting and finance? Let me know in the comments 👇 #AI #Accounting #SOX #Audit

How often should you audit payroll? Here’s the short answer: The more often, the better. When you catch issues early, you keep the dollars small — and manageable. Let’s say an employee misses a $20 allowance in Month 1. 👉 If you audit monthly, you can fix it before Month 2. 👉 If you wait a year, it balloons into a $240 problem — plus interest, and admin. That means more frequent reviews = faster fixes = less financial pain. But how often is “frequent enough”? 🟡 At least every 28 days for weekly or fortnightly pay cycles 🟡 Monthly for monthly-paid employees 🟡 Align with award reconciliation rules (e.g., quarterly if your EA requires it) 🟡 No point reviewing faster than your entitlement calculation periods (or you will miss things!) Bonus: Regular audits send strong signals across the business that payroll accuracy matters. Driving better system hygiene and fewer manual errors over time. With the help of automation and technology, monthly or 28-day reviews are not a burden — they are smart risk management that could help fix a $20 problem before it becomes a $240 problem. What audit frequency has worked best for your organisation?

Because wrong inventory replenishment destroys profit and cash... This infographics contains 7 ways for inventory replenishment and when to use each: ✅ Demand Forecasting 👉 Based on: demand ❓ When to Use: variable demand, long lead times, or seasonal trends to prevent stockouts or overstock ➡️ Replenishment Trigger: inventory required per demand plan ✅ Reorder Point 👉 Based on: stock level ❓ When to Use: consistent demand patterns, lead times and safety stock can be calculated reliably ➡️ Replenishment Trigger: inventory reaches a level that considers average daily sales, lead time, and safety stock ✅ Just-In-Time (JIT) 👉 Based on: demand, consumption ❓ When to Use: consistent, predictable production schedules and reliable suppliers ➡️ Replenishment Trigger: inventory required for production ✅ Min-Max 👉 Based on: stock level ❓ When to Use: stable demand, inventory is used consistently, but occasional fluctuations need buffer coverage ➡️ Replenishment Trigger: inventory reaches the minimum level set; the order is to get to the max level ✅ Periodic Ordering 👉 Based on: time period ❓ When to Use: predictable and relatively stable demand ➡️ Replenishment Trigger: regular intervals: weekly, monthly, etc ✅ Anticipation 👉 Based on: expectations about future outlook ❓ When to Use: high seasonality, promotional campaigns, or events requiring large, proactive stock buildup ➡️ Replenishment Trigger: seasonal inventory, expected demand peak, new system implementation ✅ Top-off 👉 Based on: production activity and stock levels ❓When to Use: ensuring storage or line-level inventory readiness before a surge in production or demand ➡️ Replenishment Trigger: in down time, bringing inventory forward to reach capacity levels Any others to add?

Balancing inventory levels to meet demand without overinvesting is probably one of the toughest challenges I've faced running my business. We all know that you need enough topline revenue generated to cover your fixed costs each month. On the other hand, we also know that we need positive cash flow to be able to keep paying our bills as they fall due. So, what can we do to plan inventory more effectively? 1. Before investing in new products, look at how similar styles previously sold. 2. Don't just view the sell-through rate; look at what the true rate of sale was if all sizes/colors/variants remained in stock so that you don't underindex. 3. Look at revenue today versus the data period you are pulling the rate of sale for. If business is up 15%, you can add an additional margin; however, if business is down 10%, you need to lower your forecast. 4. Negotiate with suppliers not just on the cost price per unit but also on the factory turnaround should you need to quickly replenish the line with a second factory run. 5. Understand how profitable this product is based on the business's current blended ad spend per order, average shipping cost, and your regular discount flows (think sign up and cart abandonment emails). 6. Make sure that if you need to discount the product by 20% and then an extra 20% to clear it, you are going to at the very least break even. Are there any steps you take that I missed to avoid over/underindexing on product?

Hospitals are making less money because of these mistakes! In healthcare, managing inventory to align with real demand is a constant challenge. With items billed to in-patients, out-patients, or not billed at all, the risk of overstock or stockouts can be high. Consider the impact of one hospital’s approach: This issue affects cost, resource allocation, and patient care. But what if healthcare facilities could analyze consumption patterns and align supply with actual demand? Here’s how leading hospitals are using data-driven strategies to reduce waste, ensure fulfillment, and cut costs. Many hospitals stock up to avoid shortages. The first step? Analyzing usage across the board. Track demand through metrics like bed days, duration of stay, department, and care provider, hospitals gain a complete view of supply needs, item by item. With this data, they can build statistical models that accurately forecast inventory levels, applying correction factors based on operational changes. Here’s how this data-driven model is transforming inventory management: 1) Demand-driven forecasting: Tracking metrics such as patient stay duration and care provider needs enables precise demand planning. 2) Item-level alignment: Each department and provider receives supplies matched to actual usage, reducing waste and unnecessary stock. 3) Correction factors: By adjusting for seasonal or operational changes, hospitals avoid costly overstocks and stockouts. 4) Financial impact: Reduced inventory costs mean more resources for direct patient care. The outcome? A supply chain where inventory is optimized, every item accounted for, and every dollar maximized. In this way hospitals save time and money to work effectively across all the channels.

Just built an IT Audit AI agent use case — and it’s only the beginning. Having shared posts over the past few weeks about the disruption Agentic AI is bringing to technology auditing, I thought… why not get stuck in myself? What many people don’t know: I started out as a coder. My early career included hacking Linux as a teenager — and now, years later, I’ve rekindled that curiosity. As a leader, I believe it’s important to understand things hands-on — especially when advising clients or coaching teams. I recently highlighted the emerging skills needed in risk and audit, and decided to upgrade myself. This week, I built a document summarisation agent using Python and OpenAI. I know there’s tons out there, but the point here is I put this together myself and any IT Internal Audit/ Compliance team can do this too! It scans long PDF reports, extracts key insights, and generates audit-relevant summaries — within seconds. Think about the time saved on policies, SOC reports, or control narratives. But more than that: Agentic AI isn’t just a trend. It’s a smart, practical partner for IT risk professionals. I’ve written a whitepaper on “Agentic AI in IT Risk & Controls” exploring how goal-driven agents can enable: • Continuous control monitoring • Automated evidence collection • Change risk evaluation in DevOps • Vendor risk review automation • Narrative generation for audit reports Client example: One of our consumer & retail clients manages over 20 third-party systems. To improve access reviews and change assurance, we deployed an agent that connects to ServiceNow and IAM logs, flags risky changes, and drafts evidence summaries. It’s reducing audit prep time and enabling real-time insight. At EY, our audit and technology risk teams are diving deep into how Agentic AI is disrupting business processes. We’re mapping out new risk models and defining what future-ready auditors will need in terms of skills and mindset. We’ll be sharing our views on this changing compliance landscape soon. Big thanks to Piers C. Maree-Louise Kernick Gareth James Abhishek Mohal Jason Walters Danila Solovyev Kevin Duthie — and everyone else helping shape the future of digital trust. If you’re in risk, audit, or compliance — or just curious about how AI is reshaping our field — let’s connect. The journey has only just begun. #ITRisk #AI #AgenticAI #Python #AuditInnovation #OpenAI #RiskTransformation #DigitalTrust #Leadership

How to Reduce Stock Loss in a FMCG warehouse. 1. Warehouse layout & storage optimization ~ Design zones by function—receiving, high-turn pick, slow-moving, packing, dispatch—to reduce movement and errors ~ Use ABC analysis (focuses on the top 20% worth 80% of revenue) to place A-items near packing and shipping. ~ Embrace vertical storage and double-deep racking for better density while keeping high-turn products accessible. 2. FIFO & cycle counting Apply FIFO to avoid spoilage and FIFO/LIFO for non-perishables Implement frequent cycle counts based on ABC prioritization to catch discrepancies early and avoid disruption. 3. Tech integration: WMS, barcodes, RFID Use barcode/RFID systems and a WMS to track stock in real time from inbound through to dispatch Automate reordering based on real-time stock data to maintain correct inventory levels. 4. Receiving & put‑away control Double-check incoming items against POs, scan them on arrival, inspect for damage, then assign proper locations immediately Separate staging area to avoid mix‑ups and bottlenecks 5. Staff training & accountability Train staff on SOPs, handling secure scanning, stock rotation, FIFO, and equipment safety Foster accountability via cycle-counting ownership and KPI tracking. 6. Security & shrinkage prevention Use CCTV on docks/storage, restricted access for high-value zones, and random audits to deter loss Investigate and resolve root causes of any variances—mistakes, theft, or system errors 7. Forecasting & supplier collaboration Apply demand forecasting and safety stock buffers to avoid both overstock and stock outs. Consider vendor-managed inventory (VMI) or CPFR to smooth replenishment cycles and reduce buffer needs. 8. Continuous improvement Use data from your WMS to monitor inventory accuracy, pick rates, and variance trends. Update layout, SOPs, KPIs and tech based on these insights. Empower staff feedback and regular reviews to drive incremental gains. ✅ In summary By combining smart design, disciplined inventory practices, tech-enabled accuracy, trained staff, and data-driven reviews, you can drastically reduce variance in FMCG stock levels—supporting better margins, service, and compliance. Let me know if you'd like sample SOPs, WMS options, or help adapting this roadmap to your facility!

𝗜𝗻𝘃𝗲𝗻𝘁𝗼𝗿𝘆 𝗰𝗼𝗻𝘁𝗿𝗼𝗹 𝗶𝘀 𝗻𝗼𝘁 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝘀𝘁𝗼𝗰𝗸.  𝗜𝘁’𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝗻𝘁𝗿𝗼𝗹𝗹𝗶𝗻𝗴 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄, 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝘀𝗲𝗿𝘃𝗶𝗰𝗲, 𝗮𝗻𝗱 𝗰𝗵𝗮𝗼𝘀. If you're not applying structured inventory techniques, you're inviting stockouts, overstocking, or worse—cash trapped in the wrong places. Here are 6 high-impact inventory control techniques used by top-performing supply chains: (1). ABC Analysis Categorizes items by value contribution: • A = High-value, tight control • B = Moderate-value, periodic review • C = Low-value, simple checks Focus where it financially matters most. (2). XYZ Classification Uses Coefficient of Variation (CV) to classify demand variability: • X = Stable • Y = Moderate • Z = Erratic Drives how much buffer or planning flexibility you need. (3). EOQ (Economic Order Quantity) Finds the optimal order size that minimizes total holding + ordering cost. Formula: EOQ = √(2DS/H) (4). ROP (Reorder Point) Calculates when to place the next order so you never run dry. Formula: ROP = Daily Demand × Lead Time (5). Safety Stock Holds extra inventory to cover demand or supply shocks. Formula: SS = Z × σ × √LT Z = service level, σ = demand variability (6). VED Classification Ranks inventory by criticality: • Vital – no stockout allowed • Essential – important, but manageable • Desirable – lowest priority Crucial in healthcare, aerospace, and military supply chains. 🧠 I use this exact framework when training supply chain teams or auditing stock strategies. Which technique do you use most? #InventoryManagement #SupplyChain #DemandPlanning