How Much Money Can Be Lost by Inventory Shrink?
When it comes to inventory shrinkage, there are two indisputable facts. If you have a large inventory shrinkage, you will lose a lot of money. According to the Center for Retail Research, North American retailers lose up to $45 billion worth of money due to inventory shrinkage yearly. On the other hand, proper management of inventory shrinkage increases profits. This is why it's important to manage and lower inventory shrinkage until it's below average. This can be done by installing integrated security systems. Here's an in-depth look at inventory shrinkage and how it can cause losses. What is Inventory Shrinkage? Inventory shrinkage refers to the difference between the available inventory and the inventory bought. In the majority of cases, the inventory available generally falls below the inventory that was bought. This causes huge losses. A lot of businesses lose billions of dollars due to inventory shrinkage each year. This has negative impacts...