Checks and cross checks are important to apply periodically. In this blog we tell you why this is important and the success Tconsult has achieved with the customer during a consultancy process. A consultancy process was started in mid-2021 at a company that works in the FMCG sector. The company makes products that are delivered directly to supermarkets and wholesalers.
Consultancy process and expertise
At the start of the consultancy process the consultant always makes an inventory of the current situation regarding packaging. The customer in question has various rental contracts for reusable transport items with various pooling partners.
Each pooling partner has its own working method and contractual agreements. One of the pooling partners keeps the packaging balance up to date for you. Another pooling partner places the responsibility for keeping the packaging balance on the contract holder. Thanks to our many years of experience with the various pooling partners, we can quickly perform the first checks and cross checks based on their methods.
Checks and cross checks
Preforming checks and cross checks can be done via different methods. You can check whether too much rent is being paid, whether the correct deposit is calculated and credited, and to find out if any packaging has gone missing.
Executing checks and cross checks is the easiest when a load carrier registration or administration is available. These checks can easily be made on the basis of the purchase and sales orders, in combination with the load carrier transactions. Checking load carrier balances is sometimes complex. This can occur if the transactions are included in the balance on a date other than the transaction date. Our consultants all take this into account.
In practice
Ernst Tjaden, managing consultant, did several checks and cross checks at the FMCG-company. It quickly became clear that it was very useful to do these checks and cross checks. Load carriers had been lost due to not checking the transactions with the invoices. As a result, less deposit was invoiced than was sent. In addition, they had credited too much deposit. The gap between the actual transactions and the administrative transactions was therefore very far apart.
Results of the consultancy process
Almost € 500,000 worth of transport items had to be written off over the year 2020. However, after research with checks and cross checks, packaging worth of €400,000 euros was found back! The administration had also gained more knowledge about transport items and is now monitoring this much more closely. There is more control in the return flow of packaging, so the packaging can be used again in production more quickly. The major consequence of this process is that less load carriers need to be rented from the pooling partner.
In short, many improvements have been made, all of which have a cost-saving effect for the company! Would you also like to know where you can save costs? Contact us today and we will help you with this challenging puzzle!
