How to Prevent Inventory Loss – Atlanta Georgia

The definition of inventory loss is simple: A condition that occurs when there are fewer products on hand than should be; resulting in lower sales and shrink. In other words, when you do your regular inventory count (these should be done at least annually, by the way, and more often if necessary) you find that the number of merchandise physically counted is lower than the number of merchandise that your books projected that you should have on hand. This is inventory loss and this leads to loss in profits, and we all learned this complicated equation in Business 101: no money = bad.

Now that we all know what inventory loss is the trick is to find a way to prevent it. In order to do that we need to know where it comes from. Most of it comes from waste, pilferage, internal or external theft. Increased loss prevention measures will help you to establish where your loss is coming from. If it is a case of internal or external theft (employee theft does make up around 40% of all shrink from retailers in the U.S.) then it’s time to send a message that this type of behavior won’t be tolerated. Place signs stating that “All shoplifters will be prosecuted” and install a CCTV system, if you haven’t already, to warn all employees and customers alike that they are being watched.

When you do catch someone (whether internal or external) prosecute that individual to the fullest extent of the law. You’d be surprised at how fast bad news travels within an organization or a community. On the other hand, if your loss is coming from waste then you need to reevaluate your processes to figure out if you are doing things as efficiently as possible. If not, it’s time to sit down with your team leaders and come up with a new strategy. Regardless of where it originates, inventory loss is a serious problem for any company. Take a proactive approach to limiting it and it’ll save you lots of trouble.

For more information about inventory loss prevention , inventory loss  or inventory shrinkage contact us at prevent retail theft or call 1.866.914.2567 – Atlanta Georgia

Posted December 8th, 2010 by Staff Writer and filed in prevent theft

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