Process Audit (Standard Operating Procedure Audit)

Store data collection and retail audits are the primary purpose of any retail outlet
operations. The steps of Retail Audit Process are addressed below.

Step 1: Schedule the audit

Using the audit tool built-in calendar or the enterprise calendar, schedule the
audit. Some audits are announced to the store’s management. This is typically the
case with merchandising audits, particularly those preceding an in-store merchandising
campaign or seasonal program. Here, the point of the audit is to get the store to
prepare for the program and execute the facets of the seasonal program as
communicated by head office. Other audits may be “unannounced” in which case the
Accounts manager shows up unannounced to conduct an on-the-spot audit. This is
often the case with service and health & safety compliance where the purpose of the
audit is to gauge the store’s compliance with standards on a typical day with no
additional preparation or training immediately prior to the audit.

If the audit is announced, an email is sent to the store’s management and the audit
appears in the store’s own calendar. If the visit is unannounced, the audit shows up in
the Account manager’s calendar but not in the store’s calendar and no emails are sent.

Step 2: Prepare for the audit

Look up the current ownership and management. Look, compare and analyze past
audits, put the information in perspective. Look for trends, repeat unacceptable’ and
location to store averages. If you have any notes, compile them ahead of time.

Step 3: Conduct the audit

Most audits are conducted from the outside in. Whenever possible, sections should be
laid out to match the natural flow of a visit (audit manager physically walking the
store). Start with the exterior (the parking lot if applicable, the window in a mall location)
and work your way in, around the aisles and into the back of the store. While you can
jump around between sections during or after the visit, setting up the form according to
the natural flow of a visit saves time and is more intuitive.

Step 4: Use the device that works best, switch if necessary.

Some retail outlets like to conduct the entire audit on their smart phone. Others prefer
the tablet. Still others like to make a first pass on a smart phone or tablet then power up
their laptop and augment the audit with additional notes.
Step 5: Take photos and add them to the audit to illustrate key points

A picture is worth the proverbial thousand words. Taking pictures and adding them to
the audit is both quick and easy. It helps the auditor illustrate exceptional performance
as well as issues and concerns.

Step 6: Don’t just report problems, assign them and get them fixed with the action
plan

The action plan is an opportunity to apply corrective actions to problem areas. It

designates an individual responsible for rectifying each problem (anything deemed
substandard or non-compliant by the audit manager during the audit) and a target date
for resolution. By doing this, the action plan fosters ownership and accountability at
store level. Issues can be assigned to individuals one by one or in bulk. You control
the granularity and whether no/some/all issues are assigned and to whom and their
target date for resolution.

Step 7: Get the store buy-in, acknowledge the audit

Once the audit is completed, you may ask the store to “acknowledge” it. This is akin to
an electronic signature and allows the store to sign-off on the audit (to ensure it did take
place at the store, date and time specified). It also gives the store a chance to leave
comments about the audit. Also, specify who is authorized to acknowledge the audit.

Step 8: Share the results with the store and head office

The completed audit will typically be shared with store management and head
office. Emailing a link to the report, viewing the report online and exporting it to Excel /
PDF should all be readily available. Set or restrict the visibility of the form by role and
department if needed.

Step 9: Follow up on the action plan

Following up on an audit can be time consuming and involve back and forth email and
phone communication. Thankfully, dedicated retail audit software makes this
considerably easier, faster and more effective by automating the communication and
tracking of outstanding action plan responsibilities. Use the “Action plan responsibilities”
report to find out exactly what action plan items have been fixed, by whom and when
and which remain outstanding.

Step 10: Plan your next audit

Retail never sits still, neither should audits. Repeat the cycle by scheduling your next
audits and watch your store’s compliance and sales numbers take off!