What
is Shrinkage ?
Shrinkage is the
reduction in inventory between time of Ordering a product and the
cash in the bank after the goods are sold. It is also known as Loss
& Shortage.
Shrinkage does not
occur where most companies think it occurs
There are four major
sources of shrinkage or retail loss listed in order of greatest
risk
1.
Employee Theft
Companies spend
Hundreds and thousands of dollars on anti shoplifting devices but
they do not screen employees.
Employees are not
limited to taking items there are many ways in which loss
occurs and by being aware of the various ways that employees
contribute to shrinkage will give an insight to the requirements
for procedures and policies to close the gaps.
No one can be
proactive against a loss if they are not aware of how a loss is
occurring.
2.
Shoplifting
Shoplifters are
creative and there are many ways in which goods are taken
3.
Administration Errors
Lack of competence,
procedures and training giving rise to " simple" but costly
mistakes which all impact on the bottom line.
4.
Vendor Fraud
Getting back to the
issue of trust, when there is a lack of accountability and cross
checking vender fraud can occur , especially where outside vendors
to stock inventory within the store.
The good news is
that there are solutions to the shrinkage problem, there is no one
solution that fits all and that is why we can help you identify
your specific issues and formulate a loss prevention plan which
will work for you.
