Inventory shrinkage and security measures

1. INVENTORY SHRINKAGE AND SECURITY MEASURES

3. Reasons for Inventory Shrinkage

4. Loss Prevention Action Plan

6. For Example If the inventory records of a retailer report that 3,261 units of Product X are on hand, but a physical count indicates that there are only 3,248 units on hand, there is an inventory shrinkage of 13 units.

8. Inventory Counting Errors

9. Administrative Errors

10. Vendor Fraud

11. Loss and Damage

12. Perish ability

15. The retail Industry attracts unskilled workers, often at minimum wage

16. Think of it as the Carrot and Stick Approach

17. The carrot includes things like fair compensation, a good working environment, employer sponsored activities that improve morale, good communication and concern for success of a company

19. People like discount, set an Employee Pricing level for some or all of your Inventory

20. You can even expand on this by allowing staff to sell a certain amount of inventory at Employee discount to friends and family

21. Move old stock and improve staff morale

22. Profit sharing is the quickest way to make all staff to feel they have a vested interest in making the company profitable

24. Prevent unauthorized mark downs by setting security levels to reflect what the individuals need to do

25. Refunds are often an area of vulnerability that is open to employee abuse