3 Ways You’re Leaving Yourself Open to Inventory Loss
- June 2, 2017
As a retailer, avoiding inventory shrinkage should be at the top of your list. When inventory is leaving your store unnoticed, you’re not only losing money, but you could have a bigger problem lingering in your store. Check out these three ways you may be leaving yourself open to theft.
Your technology is out of date
When it comes to keeping track of your inventory, you need the right technology in place. Human error can cause hundreds of dollars in loss, but with up-to-date technology, you can avoid those errors and keep track of your inventory.
You’ve put the wrong employees in place
Human error and theft account for over 50% of all inventory loss. Meaning that if you’ve put people in place who aren’t right for the job, or aren’t the most honest, you could be leaving yourself wide open for increased inventory loss. Going through a thorough interview process, including references and background checks could help you avoid those looking to steal from you. Once you have employees in the door, make sure you’re training them to be the most effective in their role.
You don’t audit your vendors
When you’re a retailer, it’s easy to let go and trust that your vendors are doing everything by the books. But the reality is, no one is looking out for your business more than you. Make sure you are paying attention to orders as they arrive and checking for damaged and missing inventory. If you do find something is off, make sure to call your rep right away to get things sorted out. Chances are, it was just a mistake, but multiple mistakes can cost your business money.
Now that you know how you might be opening yourself up to increased inventory loss, find out how you can avoid theft and lost inventory with our free guide here.