Vanishing Profits: Inventory Shrinkage – Atlanta

Inventory shrinkage is caused by more than just merchandise walking out of your business’s doors without being purchased.  It is all unaccounted for merchandise or assets, and it can occur in a variety of different ways.

To understand inventory shrinkage is to understand its definition.  According to, it is material or goods lost through deterioration, obsolescence, pilferage, theft and/or waste.  More simply, it is lost profit for a business if allowed to be out of control.

Shrinkage in a retail environment is the difference between what a business’s books say should be in stock, and what is actually in stock.  The physical inventory is less than what records show should be present.  Some shrink is probably because of theft, both customer and employee, but errors in invoicing can also be a factor.  Vendor dishonesty is an additional contributor to shrink.

Reducing loss of inventory allows a business to be more profitable.  Implementing a loss prevention program is a wise decision for a business, in order to reduce inventory shrinkage .  Having a professional analyze causes of shrink within your organization and develop customized procedures is one way to combat this loss.

A business needs its inventory in order to have its merchandise available to its customers.  Maximizing profits and reducing inventory shrinkage is not impossible and can definitely be achieved.

For more information contact us: inventory shrinkage or call 1.866.914.2567 – Atlanta.

Posted October 11th, 2010 by Staff Writer and filed in prevent theft

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