5 Ways to Prevent Inventory Shrinkage
Have a proactive, visible plan to make sure that employees know and understand that shrinkage is an issue. Several options are available to business owners or managers.
One of the best ways to deter theft in a business is through the purchase and proper placement of security cameras. The wide variety of available cameras fit any budget and situation. With wireless, wifi supported cameras, you can view your business location no matter where you are. Other hard wired cameras work on a server system that can require a larger investment. Any way you go, security cameras aid in the detection and deterrence of employee and customer theft.
An alarm system detects and deters break-ins to your business. When considering the proper system for you, be sure and ask, “How do I replace a battery on my alarm system sensors?” In some systems this can be rather complicated and you may need professional assistance. Alarm systems can be monitored silently or a loud alarm may sound when the property is violated. Regardless of your choice, an alarm system is a great investment.
Having a good inventory system in place will allow you to keep track of items and make employees aware that you are watching the inventory. The most effective systems are tied to sales and keep a running total of each inventoried item on hand. These systems may include bar coding or hand counting, and can be costly, depending on the system.
Spot Check Inventory vs Sales
Conducting a periodic spot check of inventory on hand will help aid in the control and deterrence of shrinkage. It is important that you conduct the spot check so that all employees know this is important and that you are checking. Though you do not want a hostile or accusatory atmosphere, losing money through shrinkage can seriously hurt the business.
Always Verify Purchases and Receipts
Verifying purchases and property received is vital to the health of the business. If you order and pay for 50 of an item, but the vendor only sends 30, you are in a negative situation from the start. Not doing a physical count makes for sloppy business and shows employees that the inventory is not accounted for or important.
Inventory shrinkage can lead to the death of a business. Each owner or manager must take steps to insure the business minimizes losses related to theft.