8 Ways to Prevent Inventory Shrinkage at your Supermarket

Inventory shrinkage impacts supermarkets all across Australia. It can be caused by customer or employee theft, unreliable inventory management systems, poor recordkeeping, errors with invoices, a change in operations, fraudulent vendors, or misplaced items.

A few consequences of inventory shrinkage are as follows:

  • Loss of revenue
  • A lower amount of purchasing power
  • Unsatisfactory customer service
  • Loss of profit

So how can you prevent inventory shrinkage at your supermarkets?

Preventing Inventory Shrinkage

1. Include shoplifter identification in employee training.

Shoplifting accounts for the biggest part of inventory shrinkage, so training your employees to recognise the techniques of shoplifters can help prevent it from happening.

2. Put thought into your product placement.

Be smart about where you place your products. Keeping expensive items locked up and heavier/oversised items on bottom shelves are two examples of smart product placement.

3. Know who handles the inventory.

Accepting, opening, and distributing the inventory should always be handled by the same experienced employees. They should know to compare the items received to the order sheet to ensure utmost accuracy, and they’re the people to go to if you have questions about the inventory at your supermarket.

4. Check the inventory counts, and recheck them.

Before you file purchase orders, invoices, shipping receipts, or packing lists, you need to verify them. It’s common for mistakes to occur in the receiving process, especially when you have more than one system for managing inventory.

5. Rotate your products.

Understand which products are in high demand and which aren’t by using an inventory tracking system that will tell you what’s selling. This way, you’ll know what to keep out on the shelves and at what time.

6. Review daily transactions.

This can be done in front of your employees so they know that you’ve got your finger on the pulse at your store, and they’ll be less likely to steal. If you find suspicious transactions, deal with them right away.

7. Give employees their own password/number for the point of sale.

By doing this, you can track who’s stealing from you and who is simply making mistakes and needs more training.

8. Invest in security systems.

These can be used to monitor employees and customers in strategic locations like the cash register, facing the counter, in the stock room, at the main entrance.

Maintaining Your Inventory

By following these tips to control inventory shrinkage, you’ll be able to manage your supermarket securely and confidently. You’ll have peace of mind knowing that your inventory is being managed and your profit/revenue is not in danger.


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