Is your Inventory Disappearing?- 5 Simple Steps To Reduce Inventory Shrinkage
In today’s economy every dollar counts and managing your inventory is at the
top of the list.
Almost every business owner has some concerns with disappearing inventory,
a lot of times inventory can be lost because of employee theft or mismanagement
of items. This in the financial world is called inventory shrinkage and it’s a growing
Here are 5 steps you can do to limit your inventory liability.
#1 Hire trust worthy employees.
Seems obvious but still needs to be stated, hire trustworthy, honest and
hard working employees. Installing surveillance cameras and keeping all areas of
the warehouse well lit.
One your biggest assets are your employees so don’t go jumping to conclusions.
You do not want employees suspecting that they are being monitored every
second of the day just waiting for a mistake to happen.
You can offer incentive programs and employee training to keep them involved
with the day to day operations of the facility.
#2 Packaging needs to be clearly marked and labeled.
Inventory shrinkage isn’t always theft, sometimes there is mishandled or
misplaced inventory. By taking the steps to place the correct labels and store
the items in specific locations inventory shrinkage can be greatly reduced.
#3 Watch your purchases closely.
Often small business owners over purchase raw supplies in anticipation of orders
that never get fulfilled. This can create wastage and stress on the warehouse teams.
Purchasing so far in advance may not always be the best course of action.
#4 Surveillance Camera’s Installed.
Technology in today’s world can absolutely be your friend and many small business
owner’s think they are to small to install security camera’s. The fact is the expense
of buying and installing the systems one-time will reap dividends for many years to
#5 Inventory Software
Installing an inventory management software program is probably one of the easiest
solutions to see an immediate return on your investment. You want to make sure
that the inventory program has a wireless barcode scanner to read the UPC codes
from any part of the warehouse.
You will also want to make sure that the company has a strong reputation in
the industry for providing excellent customer service. The inventory management
software is only as good as the company that is providing the support.
By following these steps your organization can reduce inventory shrinkage and
increase profits in this challenging economy.
Scoutsft.Com is an excellent solution for inventory management software and
they offer a totally free demo of their latest program.
Give them a call or visit them on the web at https://scoutsft.com