Typically people will associate inventory shrinkage with retailers. But in reality, business owners across the board can be impacted by this type of problem. That’s because inventory shrinkage refers to a whole variety of business mishaps, from petty shoplifting to major theft, property damage and even administrative errors. Once you understand what’s really at stake, then you can find the right solutions to keep your inventory shrinkage concerns at bay.
The Worst Aspects of Inventory Shrinkage
No matter the cause, inventory shrinkage can have significant financial and operational implications for a business. What’s more, just about any company can be at risk.
There’s no doubt that department stores, supermarkets, convenience stores, and even local brick and mortar shops are particularly susceptible to inventory shrinkage. Even still, any company that deals with inventory must take steps to prevent inventory shrinkage, regardless of their industry.
For example, the healthcare industry is prone to inventory shrinkage due to the high value and sensitive nature of medical equipment and supplies. This can include theft, damage, or even misplaced or expired inventory; and ultimately, these losses could put a healthcare organization at risk of facing legal issues if they aren’t able to comply with their industry regulations.
There are also concerns for the construction industry. Dealing with large, expensive equipment and materials can put these businesses at risk of theft or damage. The most obvious fallout is an immediate financial loss. But then companies may have to bear additional costs to replace lost or stolen equipment, all while struggling with production downtime.
Retailers in particular have to cope with the costs of reordering, restocking and the risk of delayed deliveries. And if customers can’t find what they need, then the company’s reputation could be on the line and lead to loss of business. Even at a low rate, inventory shrinkage can have major impacts for a company’s success. To stay efficient and competitive, it’s best to consider their options for preventing the problems from popping up in the first place!
Apply the Best Preventative Measures
There are several effective ways for companies to lower the risks of inventory shrinkage, and taking extra precautions is critical for avoiding losses. One way to mitigate these issues is to provide regular training to employees. It may be time to review your HR management or introduce a set of protocols to help your team members identify and report suspicious activity, or reduce the risk of equipment damage or product loss due to mishandling.
Performing regular inventory audits and conducting cycle counts can also help mitigate discrepancies and potential issues before they become major problems. Implementing a more robust inventory management system can help companies keep better track of their inventory levels and reduce the risk of administrative errors.
In cases of theft, installing security measures such as surveillance cameras, alarm systems, and access controls can help deter theft and reduce the risk of inventory shrinkage. Making a simple upgrade to your surveillance equipment can be a total gamechanger, and integrating those solutions with your existing telecommunications systems can make your efforts even stronger!
Want Better Tech? We Can Help!
Implementing new security measures and surveillance equipment can help companies protect their bottom line from inventory shrinkage. The trick, though, is making sure you’re getting a customized solution for your site and team. While certain pieces of technology, like access control systems, EAS tagging setups, and commercial surveillance cameras, are widely accepted as good options, they can only be effective if they’re being applied correctly.
Every industry and site is different. But with a good telecommunications company on your side, you can get the surveillance technology you need to lower your inventory shrinkage risks and keep all of your assets protected.
If you’d like to talk through your options, please send us a message. We’re proud to serve clients throughout Idaho and into Eastern Oregon. Let our team help you out!
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