In a perfect and ideal setting, there is no reason to worry about inventory theft. However, the reality is that many businesses lose a lot due to inventory theft. This shrinkage can be traced based on the difference between the accounting records such as receipts, purchase orders, and physical count. Inventory loss means that you lost your potential income and profit. This must be urgently addressed.
Preventing inventory shrinkage is not hard and you do not need to spend a lot of money on it too. First, it will need the cooperation of every employee starting from the stockroom, and all the way to the accountants.
How do you lose inventory?
There are several sources of inventory theft, such as the following.
Your stocks in stores can be lost by shoplifting. This is a top source of loss that can cost you a lot of money. Some customers shoplift for their own use, while others do it in order to sell the item again. Others try to change the price tags.
There are some stores wherein the theft is done by the employees. Some of these employees turn to this dirty deed when they are not happy with what they do or when they need extra cash to cover personal expenses.
Errors in paperwork
There are management and paperwork errors that can happen along the way and lead to inventory loss.
How to identify and solve inventory theft
Regular inventory count will help minimize theft. This will allow you to double-check and compare records if there are any discrepancies.
Having an inventory count, especially if you are running a big warehouse can mean that you have to close up during an inventory day. Since a stock should not move in or out while counting, you may need to stop operation for a day or two.
Control warehouse permissions
The risk of theft can be minimized by limiting people who can go in and out of the warehouse. You can only assign specific people who can view and count the inventory. After all, you do not need a lot of people especially if you have reliable inventory software.
Good storage place
Needless to say, your warehouse location or wherever you place stocks must be in a secure area. Sometimes the storage area for goods is overlooked, and this can cause inventory loss and theft.
Using a reliable inventory management software
Keeping count of your inventory is good but having software to take care of it is even better. This ensures that you will get more accurate reports. You will only have to count before using the software.
By implementing effective inventory management techniques, you can minimize losses from theft. Adapting a powerful inventory management system can help trace any discrepancy at a very early time. Thus, preventing losses from becoming too big and undetected.
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