One of the main concerns for business owners is reducing costs that derive from inventory loss and shrinkage. Many retailers lose stock between the point of manufacture, purchase from a supplier and the point of sale which can cause significant costs to their business.
So, how can you reduce and prevent inventory loss and avoid the associated costs?
First of all, it’s imperative to recognise why the loss is occurring. If you know the ins and outs of your supply chain as well as your stores, you have a better chance of finding the cause and addressing the issue. There are many different reasons for inventory shrinkage, including:
- Human error – administrative mistakes, such as errors in record keeping or paperwork
- Shoplifting – this is one of the most common causes, accounting for a £335 million loss in 2014
- Employee theft –frequently employees are responsible for inventory loss. It can happen through product theft, discount abuse and credit card fraud
Invest in Security
Nowadays, you can easily purchase a video security system for your store at a low cost which can deter potential shoplifters. They’ll know they are being watched from the moment they come into your shop, which can prevent them from committing a crime. Make sure to place signs around the store informing customers of these cameras.
Technology is not just useful to keep track of which products have low stock levels – it also provides real-time reports on your inventory, staff activity and cash transactions.
A lot of systems allow you to create user permissions and enable or prohibit certain tasks. You might want to grant access to certain operations, such as manager logins and voiding transactions, to certain employees only which can help you stay in control.
It’s important to keep on top of what is happening in your store at all times (and to ensure the best use of technology and data) and Nisyst strives to help in this endeavour by providing high-quality EPoS systems to meet all of your needs.
If you’re looking for retail solutions to help you take your business to new heights, get in touch with a member of our friendly team on 01204 706000.