Inventory shrinkage is the difference between the inventory you have on your books and the inventory you physically have in stock. It's a multi-billion dollar problem for retailers. Here’s how to fight back.
- Implement Regular Cycle Counting: Instead of one massive annual count, perform small, regular counts of specific sections of your inventory. This helps you spot discrepancies early.
- Secure Your Receiving Area: A significant portion of theft occurs during receiving. Ensure this area is well-monitored and that all deliveries are double-checked against purchase orders.
- Train Your Employees: Train your staff on proper handling procedures to reduce accidental damage and educate them on the impact of shrinkage on the business.
- Use an Integrated POS System: A system like the Business Portal tracks every transaction in real-time. This makes it much harder for employee theft to go unnoticed.
- Enhance Security Measures: Install visible security cameras and greet every customer who enters your store. This simple acknowledgment can deter potential shoplifters.
- Organize Your Warehouse: A clean and organized warehouse makes it easier to spot misplaced items and conduct accurate counts.
- Leverage Your Software: Use your business portal to run regular discrepancy reports. By comparing expected stock levels with physical counts, you can pinpoint exactly where and when losses are occurring.
