Leaders want proof that the numbers in the system match what sits on the shelf. Phase 4 is the audit that turns our field work into clear evidence you can show. It explains where items sit, what changed, and why each fix is correct.
Below, we outline how Phase 4 works, the tests we run with third parties, and how we reconcile differences. You will also see what you receive at closeout and how we protect the gains with short follow-ups.
How Phase 4 Fits The Monarch Way
Recap Of Phases 1–3
- Phase 1: Plan And Prep. We align with your internal or external audit partner, share our process, confirm site maps, and agree on rules.
- Phase 2: Count And Verify. We count each location, confirm on the spot, and log notes for anything unusual.
- Phase 3: Reconcile And Analyze. We compare counts to the system, review variances, and stage fixes with owners and due dates.
What Phase 4 Confirms
- Books match the floor across every location.
- Any extra locations found during work are added to the record.
- Each exception has a cause, a documented fix, an owner, and a due date.
Key Takeaway: Phase 4 makes the proof easy to read. Clear samples, clean notes, and named owners keep everyone aligned.
The Audit Tests We Perform With Third Parties
Book To Floor: Do Records Match The Shelf?
We select items from the system, locate them on the floor, and count. We scan packs and sizes, note any gap, record the cause, apply the fix, and mark it complete. We keep sample lists, photos, and timestamps for traceability.
Floor To Book: Does The Shelf Match The Record?
We start on the floor, scan items, and open the record. We check size, cost, label, and location code. If a field is wrong, we correct it, document the step, and attach evidence.
Random And Material Tests
- Random samples check quality across zones and shifts.
- Material tests focus on high-value and high-risk items.
- Each sample shows time, user, and location so anyone can follow the trail.
Pro Tip: Post a one-page test plan at the start. A simple sheet with zones, sample sizes, and owners keeps meetings short and decisions quick.
Reconciling Exceptions And Proving Fixes
Find The Cause And Correct
Most gaps fall into a few buckets:
- Late or missing receiving
- Wrong tag or pack size
- Shelf move not recorded
- Cost posted without a price update
We match the gap to a bucket, correct it, and post the change the same day. We also review recent activity to make sure the fix holds during normal sales.
Evidence You Can Show
For each fix, we attach:
- A scan or photo of the item and location
- The before and after counts
- The user who made the change and the timestamp
Need expert help with an audit? Contact Monarch Inventory Services for a free consultation.
Closeout And Ongoing Assurance
What You Receive At Closeout
You get a packet you can share with leaders and auditors:
- A site map with 100 percent of locations marked “Verified”
- An exception list with cause, fix, and next steps
- A short action plan for labels, prices, or vendor follow-up
After-Action Checks At 7 And 30 Days
We schedule quick checks to confirm results hold after regular sales and receiving. If a new issue appears, we log it, fix it, and update the packet so the audit record stays complete.
Key Takeaway: A clear closeout plus two short follow-ups protects margin, prevents repeat errors, and keeps trust high.
Why This Stage Matters To Your Team
Faster Reviews For Boards And Lenders
The packet tells the full story in minutes. It shows the audit ran the right way, that the books match the floor, and that every fix has proof.
Less Rework Next Cycle
Root causes drive training and daily tasks. Small habit changes make the next count faster, cleaner, and lower cost.
Proof You Can Stand Behind
Phase 4 delivers what leaders need. We run the right tests, close gaps fast, and hand you evidence you can defend. Ready to make your next cycle smoother and safer?
Schedule a call with Monarch Inventory Services. We will scope your sites, align on the plan, and run a tight audit so you can focus on the business.
