Experiencing Inventory Loss?

All retailers experience inventory loss. It comes in many forms: employee theft, shoplifting, vendor fraud, paperwork errors and more. The issue is not if you are going to have an inventory loss it is what are you doing to prevent it and how do you deal with it once it occurs?

Prevention is the most cost effective way to keep money on your bottom line. A prevention program should consist of three elements 1) Employee training 2) An audit program and 3) Investigation. Think of these like three legs on a table. You have to have all of them for it to stand up. These three elements also feed into each other.

Employee training keeps most errors from occurring in the first place. Do you talk openly with your new hires and existing employees about employee theft and the impact on inventory loss and profit, which ultimately impacts them.

An audit program looks for what your people have missed through their training and experience.

Of course if the audit picks up a theft situation or you become aware of theft from any source then an investigation must occur. I have seen many retailers bury their heads in the sand and act like theft does not occur in their store. This simply allows the thefts to grow in number and value.

You can stop inventory loss and retail theft. A solid loss prevention program is the key!

For more information: inventory loss or call 1.866.914.2567

Posted August 12th, 2010 by Staff Writer and filed in prevent theft

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