Strategies to Reduce Inventory Shrinkage

Learn to fight inventory shrinkage with better warehouse management, earlier detection, security methods, and technology.Inventory loss and its costs includes not only the material itself but also the time spent in searching for the missing inventory as well as expedited purchasing costs to replace the needed inventory. Missing inventory is a factor in the supply chain bullwhip effect.Organizations need to take this problem seriously because it has a serious impact on every aspect of the supply chain. Organizations are fighting inventory shrinkage with better warehouse management, earlier detection, material handling education, security methods, and technology. The need for timely information for production and customer orders emphasizes the importance of addressing this situation. The costs for writing off inventory shrinkage as just part of doing business are far higher than most organizations know. This material also offers proven best practices in solving the mystery of inventory shrinkage.

Inventory Shrinkage • Definition of Shrinkage • Impact on Inventory Accuracy • Impact on Supply Chain Management • Shrinkage and Carrying Costs Reducing the Shrinkage Factor • Identifying Shrinkage in the Warehouse • Identifying Shrinkage in the Office Areas • Identifying Shrinkage in Transit • Control and Cycle Counts – Weapons Against Shrinkage The People Factor • The Importance of Material Handling Employees • Training and Understanding the Impact of Inventory in the Supply Chain • Warehouse Management • Inventory Control and Management