[vc_row][vc_column][vc_column_text]One of the biggest concerns when it comes to managing inventory is shrinkage. There are several reasons inventory loss can occur. Preventing inventory loss and reducing costs can be manageable with the right POS and inventory management system.
Before deciding on a strategy for preventing inventory loss, it is important to identify who is causing the loss. There are four main areas of inventory loss. According to the National Retail Federation, customer shoplifting is the most common, followed by internal theft from employees. Internal error, such as administrative and paperwork errors, and mistakes by the vendor are also common causes of shrinkage. Recognize where your inventory goes missing to choose an appropriate prevention strategy.
Now that you know who is causing inventory loss, you should look at why these mistakes are happening. One of the main causes of human error is having the wrong POS and inventory management system for your business. Technology has become increasingly important in managing your business, so the wrong system could make you more open to theft and error. Internal theft and error can also occur when you choose the wrong employees or don’t train them well enough. Overstocked inventory and wrong layout can cause you to lose track of inventory. Lastly, if you don’t audit your orders from vendors, you could fail to notice incorrect or missing items.
Tips for prevention
Knowing where your inventory loss is coming from makes it easier to combat. Here are some tips to prevent inventory loss in your store:
Invest in a POS and inventory management system that helps you visibly track your inventory to prevent theft and error.
Conduct physical inventories once a month to catch any errors.
Install sufficient security to prevent and identify theft.
Keep your store clean and organized to keep track of inventory in the front of the store.
Place all high-target items in plain sight.
To see the full guide on preventing shrinkage in your store, click here.[/vc_column_text][vc_column_text]
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