4 Factors Influencing Inventory Shrink
The Global Retail Theft Barometer published by the Center for Retail Research discovered the fact that North American retail loses up to $45 billion in inventory due to inventory shrink every year. That’s a shocking amount of lost value to endure every year. Believe it or not, most of this loss can be attributed to four major factors.
- Employee Theft
Just because someone works for a company, it doesn’t mean they are any less likely to steal something. Employee theft is a big issue in retail and in corporate offices. To combat this issue, advanced access control systems and solutions offer you the ability to track keycard data. This holds employees accountable, builds trust, and catches theft in action.
If you own a business of any size, you need a store or office security system. People shoplift. It’s going to happen no matter what you do. Still, office security systems with audio and visual feedback can help mitigate the extent of shoplifting incidents. Don’t leave your goods unguarded.
- Paperwork Mistakes
Everyone makes mistakes. Improperly filled out forms could mean the difference between 70 boxes of cotton swabs and 7,000 lampshades. Faulty record keeping could also cause products to be shipped to the wrong branch of your business. Someone might have even simply misread a form that was filled out correctly. All of these mistakes are understandable, but it doesn’t make them any less expensive.
- Supplier Fraud
Fraud comes in many shapes and forms. Perhaps you ordered authentic gold watches, but received tarnished gold flake duds. What if your supplier takes your money, but never even delivers the products. Supplier fraud is more common than many business owners believe. If you suspect (or can prove) that a supplier is engaging in fraudulent business practices, you should contact the proper authorities.
Two of the four factors that make up a huge sum of lost economic value can be mitigated by using professional grade security systems. It is important to never overlook any potential source of lost value. Most retailers have felt the keen sting of all four factor. If this describes you, stand up and protect your product by installing an access control system today.