Ways For Effective Inventory Shrinkage Prevention

How to implement shrinkage and loss prevention methods
Ways for Effective Inventory Shrinkage Prevention

1. Train your employees
The best way to avoid shrinkage is to train your employees.
An open discussion about shoplifting can update everyone involving your employees. You
can conduct a seminar about teaching your employees on how to recognize shoplifting
techniques and improve your security
Also, the placement of your products within your stores is essential. Keeping expensive and
luxurious items in a locked case in the back of the store prevents anyone from doing a quick
grab and run. This is easy and cost-effective to step up your security.
2. Implement a system for double check
It is also possible that inventory management accuracies may come from mistakes made
during the receiving process or while using multiple systems to manage your inventory.
Therefore using a single automatic system can reduce the errors of transferring data from one
system to the next
3. Prevent fake promotion codes
Offering promotions is one of the best ways to increase the sales of a product. However, it is
also one of the ways that scammers can take advantage of these promotions. With the
increased use of online ordering, many scammers circulate fake discount coupons online
from manufacturers. When this happens your business could be forced to take-up loss of
those reimbursements which would likely have a devastating effect on your margins
Be sure that your customers and employees are kept up to date with the online promotions
that run on your store. you will also need to educate your employees on how to detect
anomalies in promotional coupons such unusually have high discounts or higher than average
number of coupon redemptions.
4. Rotate Products
The best way to avoid inventory shrinkage is to know the trending product in the current
market. You should know how to locate products that quickly become out of date.
5. Stop shipping fraud activities.
If you have a large inventory, then fulfilment can become challenging to detect scams due to
the hectic activity of orders being shipped and received. To avoid fraud, you should carefully
check your shipping documents, and even the products claimed to be ‘defective.’
For the goods received, ensure that you have an inspection process in place that can verify the
quality the products received. Also, it is good to keep a record of these inspection reports so
that you can later analyze any strange pattern or trends that are worth investigating further.
6. Improve the inventory stocking processes
It is also essential to prevent damage to new products received through shipping and stock
them correctly. Train your employees on how to handle them and store properly into the
warehouse or backroom. Place Items accordingly so that they can be easily accessed; for
example, figure items should be on the bottom of the shelf so that employees and customers
can easily reach the item they are looking for.
If you have a storage facility like a warehouse, make sure that you have scheduled
inspections to check out the integrity of the exterior and the roofs. So if needed, repairs can
be made in a timely fashion without impacting your store inventory. Fire detection and
prevention systems should also be in place appropriately stored so that they can be used
during emergencies
7. Invest in a good inventory management software
Using good inventory software is a great way to automate and manage inventory. It can
eliminate all the administration errors that result from manual management of inventory. You
can have an organized workflow that you can easily monitor and maintain even remotely. By
having secure access keys for your employees, you can prevent fraudulent activities and have
control over the whole operation.
It is also easy to manage your inventory with the centralized system rather than having
multiple spreadsheets that are handled manually from different accounting shipping and
quality control departments. Doing so will streamline your process and avoid the chances of
any errors dramatically.

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How to implement shrinkage and loss prevention methods

Ways for Effective Inventory Shrinkage Prevention

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