Inventory System Philippines Shrinkage: 8 Effective Strategies to Protect Your Stock

Are you struggling with Inventory System Philippines shrinkage? Do you need some tips to prevent this? Read below,Guest Posting you’ll find your solutions. This will take around 6-8 minutes to read.

So before beginning the prevention strategies, you need to know what inventory shrinkage is, how you can calculate it and what can be the reasons for its root.

Inventory System Philippines Shrinkage

Inventory System Philippines shrinkage is simply defined as the loss of physical inventory that affects revenue in every business — especially retail business. More specifically, it refers to the amount of inventory that you lose or fail to sell during a specific time period. This problem could be slowly draining your profits without you knowing it.

Blaming employees is something that directly affects the company’s reputation — even though the accusation is true. But sadly, lots of stock can be stolen by unethical staff members.

According to the NRF research, two-third of the retailers face theft by sophisticated criminal gangs - the unethical staff.

So to prevent such thefts, you need to implement employee screening when hiring new staff. For that, you need to check proper references and background. Their identities should be clear. It may cost you losses if you just quickly hire someone grasping a successful interview without knowing his past.

One of the checks can be carried out by contacting previous employers. This practice can help you find out:

It stands for Stock Keeping Unit. An SKU is a combination of letters and numbers. It’s unique for each retailer. It gives each product variant a unique identity to help keep stock levels accurate.

So you need to intelligently define an SKU for every product. These SKUs are lifesavers. All you have to do is, make sure your SKUs are as clear and simple as possible, and scalable enough to accommodate new products.

Note that: an SKU is not a barcode. Unlike the barcode, an SKU alone can let a human recognize a product.

The products with SKUs allow the warehouse staff and administrators to track Inventory System Philippines levels more efficiently and smoothly.

3) Analyze your stock levels regularly

This prevention tip helps you catch inventory shrinkage at an earlier stage. So you should analyze your stock levels regularly.