How Nilgriva Helped a Leading FMCG Retail Business Strengthen Inventory Control and Improve Operational Visibility
Recently, Nilgriva Stockflow Advisory conducted a comprehensive physical inventory audit for a leading multi-location FMCG retail organization in North India. The business was generating approximately ₹40 Crore in annual turnover and managing inventory across multiple store locations.
The objective of the engagement was to evaluate inventory accuracy, verify physical stock, identify operational gaps, and recommend inventory management improvements that could enhance inventory visibility, operational efficiency, and financial control.
During the audit, our team identified several critical inventory management challenges, including inconsistent SKU management, inventory reconciliation issues, lack of transfer controls between locations, absence of structured inventory planning mechanisms, and limited inventory governance practices.
Physical verification revealed inventory valued at approximately ₹8.09 Crore. Further analysis showed that inventory worth nearly ₹1.62 Crore consisted of locally sourced products and items with inconsistent SKU structures, creating risks related to inventory accuracy, pricing discrepancies, and potential revenue leakage.
The audit also highlighted operational challenges related to inventory transfers, stock accountability, inventory planning, expiry management, and inventory visibility. Multiple inventory locations operated without a structured transfer tracking mechanism, making inventory reconciliation difficult and reducing operational transparency.
In addition, Nilgriva observed opportunities to improve inventory planning processes, strengthen FIFO practices, reduce inventory losses from expiry and damage, and optimize inventory holding levels to improve working capital efficiency.
Based on the findings, Nilgriva developed a comprehensive inventory improvement roadmap that included SKU standardization, inventory coding frameworks, transfer controls, inventory accountability systems, consumption-based replenishment methodologies, FIFO implementation, cycle counting programs, and periodic inventory verification processes.
The engagement demonstrated how structured inventory management practices can significantly improve inventory accuracy, strengthen operational controls, enhance visibility, and support better business decisions. Through a combination of physical verification, process improvement, and inventory governance initiatives, the organization is now positioned to achieve greater inventory efficiency, stronger controls, and improved business performance.
