Food wholesaler: reduction in order errors by 64%
An analysis of the goods receipt process showed that 1 in 12 deliveries had errors in invoices. Introducing a simple digital verification eliminated financial losses.
A food wholesaler from Gdynia was struggling with a mess in delivery documentation. Every month the company lost specific sums due to discrepancies in prices and quantities of goods on invoices.
The challenge
Bałtycka Spiżarnia serves 127 stores in the Pomeranian Voivodeship. In August 2024, our study showed that 8.4% of all deliveries from external suppliers contained errors. Warehousemen accepted goods based on paper documents, trusting the suppliers. Monthly losses resulting from overpayments and stock shortages averaged 14,320 PLN. Complaints dragged on for weeks, and office workers wasted 22 hours a month straightening out correction invoices.
Our approach
We sent two of our auditors to the warehouse in Gdynia for 4 days of full observation. We analyzed the path of the last 482 invoices and compared them with the physical state on the pallets. We checked how the IT system communicates with the warehouse terminals. It turned out the barrier lay in the lack of an automatic block for price discrepancies above 0.01 PLN. We prepared a specific repair plan focused on eliminating fluff in reports.
The solution
We implemented a rigid digital verification system at the unloading ramp. Every product must be scanned and compared with the order database in real-time. If the price on the invoice differs from the contracted price, the system automatically generates a discrepancy protocol. We trained 9 warehouse employees in the new procedures. Now the actual state is checked immediately, not a week later in the accounting office.
Results
9 weeks after implementing the changes, the numbers speak for themselves. The wholesaler regained control over cash flow and stopped paying for its suppliers' mistakes.
Timeline
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September 2024Zero audit and analysis of 482 paper invoices for errors.
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October 2024Configuration of price blocks in the system and terminal tests.
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November 2024Training of 9 warehousemen and full launch of the new procedure.
"I thought small errors in invoices were the norm in this industry. The Pomeranian Audit Center showed me that I lose almost 15 thousand a month because of it. Now I have savings in black and white."