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Stock Audit · The Classic Partners LLP

Warehouse Audit Services

Independent audit of warehouse operations, inventory accuracy, physical controls and documentation practices — for logistics operators, FMCG and pharma distributors, e-commerce fulfilment centres, 3PLs and manufacturing stores. Structured gap report with prioritised corrective actions.

Quick answer

A warehouse audit is an independent assessment of how a warehouse is run — not just what it holds. It evaluates operational controls, inventory management practices, inbound and outbound documentation (GRNs, GDNs, e-way bills), FIFO/FEFO compliance, physical security, space utilisation and, where relevant, third-party (3PL) contract adherence. The Classic Partners LLP conducts warehouse audits for clients in FMCG, pharma, auto-ancillary, e-commerce and manufacturing — delivering a structured audit report with risk-rated findings, root causes and a corrective action log with owners and target closure dates.

What we do

An audit that tells you not just what you have — but how well it's being managed

A stock count tells you whether the numbers match. A warehouse audit tells you why they don't — and what controls are failing. Shrinkage, pick errors, FIFO breaches, undocumented returns, expired stock on active shelves, gate records that don't reconcile with e-way bills — these are process failures, not just counting failures.

We combine operational observation, document review, cycle counts, staff interviews and process mapping to produce a risk-rated findings report that your warehouse manager and CFO can act on immediately. For companies using 3PLs, we also verify whether your third-party operator is actually meeting the SLAs and controls specified in your contract.

  • Inbound / outbound documentation review — GRN, GDN, challan, e-way bill reconciliation
  • FIFO / FEFO compliance verification — critical for food, pharma and perishables
  • Cycle count and location-level inventory accuracy assessment
  • Physical security — access control, CCTV coverage, pilferage risk
  • 3PL contract adherence — SLA verification, liability reconciliation
  • Risk-rated gap report with owner and closure timeline per finding
Who needs it

Applicability — businesses that benefit most from a warehouse audit

Sector-specific triggers and the key risk areas a warehouse audit addresses in each case.

Business type Key risks addressed Critical audit areas
FMCG / food / beverages FIFO / FEFO breaches, expiry management, batch tracking, recall readiness Storage conditions, rotation compliance, batch documentation
Pharma & healthcare distributors Cold chain integrity, scheduled drug documentation, expiry and recall procedures Temperature logs, scheduled drug register, licence compliance
E-commerce & 3PL operators Inventory accuracy, pick-and-pack error rates, returns handling, SLA adherence WMS vs physical reconciliation, returns process, courier reconciliation
Manufacturing (RM / WIP / FG stores) Material movement controls, gate documentation, inter-plant transfers, pilferage GRN / GDN process, gate register, inter-plant reconciliation
Retailers with DCs / regional warehouses Shrinkage, location accuracy, inter-branch transfer documentation Physical controls, CCTV, reconciliation, transfer documentation
Export / import businesses Bonded warehouse compliance, customs documentation, stuffing and de-stuffing records Customs records, bond register, examination reports
Scope of work

What our warehouse audit covers

Scope is tailored to your warehouse type, sector and the business outcome you need — lender report, internal control review or 3PL compliance verification.

IA

Inventory Accuracy Assessment

Cycle counts at SKU and location level compared to WMS or ERP records — location accuracy rate calculated, high-variance items root-cause investigated.

IO

Inbound / Outbound Process Review

GRN, quality inspection, put-away, pick, pack and dispatch documentation reviewed — process gaps, missing signatures and unrecorded movements identified.

FF

FIFO / FEFO Compliance

Batch management, expiry date adherence, first-in-first-out and first-expired-first-out rotation verified at shelf and location level — critical for food, pharma and cosmetics.

PC

Physical Controls Review

Access control, CCTV coverage and blind spots, security manning, damage investigation procedures and pilferage risk assessment — findings risk-rated high / medium / low.

DC

Documentation & Compliance

Delivery challans, e-way bills, gate registers and transporter PODs reconciled — missing or mismatched documents flagged with estimated GST and penalty exposure.

3P

3PL / Vendor Audit

Contracted 3PL's adherence to SLAs, liability clauses, reporting obligations and performance KPIs verified against the warehousing or logistics service agreement.

How we work

Our four-stage warehouse audit process

Designed to give you an honest picture of operations — not a pre-announced inspection where everything is tidied before we arrive.

1

Scope definition

Agree locations, process areas, audit criteria, sampling methodology and whether the audit will be announced or unannounced — and the deliverable format required.

2

On-site assessment

Walk-through observation, process documentation review, cycle counts, staff interviews and physical control assessment — evidence collected and photographed throughout.

3

Gap analysis

Every finding mapped to a risk rating (high / medium / low), root cause identified, financial or compliance impact estimated and management response captured.

4

Report & follow-up

Structured audit report with gap log — owner and target closure date per finding. Optional follow-up review to verify corrective actions have been implemented.

Why The Classic Partners

An audit that finds real issues — not just ticks a compliance box

Sector experience, operational depth and a report your warehouse manager and board can both use.

Operational and financial lens

We evaluate both financial documentation controls and operational efficiency — not just whether the numbers match, but why they don't and what it costs you.

Sector experience

FMCG, pharma, e-commerce, auto-ancillary and manufacturing warehouse environments — sector-specific checklists, not a generic template.

FIFO / FEFO specialists

Critical for food, pharma and perishables — we verify batch rotation, temperature logs and expiry management against sector regulatory requirements.

3PL contract expertise

We read your warehousing agreement before we walk the floor — so we can tell you whether your 3PL is actually performing to what was contracted.

Photo and video evidence

Documented findings with timestamps, GPS coordinates and photographic evidence — defensible if a 3PL or insurer disputes the findings.

Actionable gap log

Every finding has a risk rating, a named owner, a root cause and a target closure date — not just an observation that sits in a report and gathers dust.

NS

Reviewed by CA Nainit Savla Founder & Lead Partner, The Classic Partners LLP — B.Com, Associate Chartered Accountant (ICAI), ex-KPMG Real Estate Advisory. Leads warehouse and stock audit engagements for FMCG, pharma, logistics and e-commerce clients across Mumbai and Maharashtra.

FAQs

Warehouse audit questions operations heads and CFOs ask us

Straight answers before you engage an audit firm.

A stock audit is a physical count and reconciliation of what is held in the warehouse — it answers "do the numbers match?" A warehouse audit evaluates how the warehouse is managed — processes, documentation, controls, FIFO compliance, security and 3PL adherence. It answers "why don't the numbers match, and what operational failures are causing it?" Both are complementary — many engagements combine a cycle count with a full operational audit.
Yes — this is one of the most common warehouse audit scenarios. We review the warehousing or logistics service agreement first, then assess whether the 3PL is actually meeting its contracted SLAs, reporting obligations, security requirements and liability provisions. The report is issued to you as the goods owner, independently of the 3PL. Access arrangements are typically agreed in writing before the engagement to avoid access refusals on site.
Yes, for company-owned warehouses where management instructs us to conduct an unannounced audit. For third-party (3PL) warehouses, the logistics agreement should ideally include an audit-access clause — if it does, we can use it without advance notice. We recommend clients include such a clause in all new warehousing contracts. For existing contracts without this clause, we advise on the most effective approach to secure access and what to document.
A focused audit of a single warehouse with agreed scope typically takes one to two working days on site, with the report delivered within five to seven working days. Larger facilities, multi-location audits or audits with a broad operational scope take longer — we provide a timeline estimate after the scoping call. The cycle count component can run concurrently with the operational assessment to keep total time on site to a minimum.
Our sector experience covers FMCG and food distribution (FIFO/FEFO, batch management), pharma (scheduled drugs, cold chain, expiry management), e-commerce and direct-to-consumer fulfilment (WMS accuracy, returns handling, SLA tracking), auto-ancillary (just-in-time inventory, line-feeding, inter-plant transfers), retail distribution centres (shrinkage, replenishment accuracy) and export/import bonded warehouses (customs compliance, bond register). Each sector has its own risk profile and we use sector-specific audit criteria, not a generic checklist.
You receive a structured warehouse audit report covering all areas assessed, a risk-rated gap log (high / medium / low) with root cause, estimated impact, responsible owner and target closure date for each finding, a cycle count reconciliation if a stock count was part of scope, and — where relevant — a 3PL SLA adherence scorecard. An optional follow-up review six to eight weeks later verifies whether high-priority findings have been closed. All deliverables are issued digitally and signed by a CA.

Ready to audit your warehouse operations?

Tell us your industry, number of locations and whether the audit is for internal control, a 3PL, a lender or an insurer requirement. You'll get a scoped proposal within one working day.

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