Manage shrinkage in the inventory

• Navigate to Management > Shrinkage.

This feature is particularly useful for:

• Identifying high-loss points: Detect sales points with significant losses that may indicate theft, management errors, or inefficiencies.
• Comparing performance: Compare inventory shrinkage between centers to identify trends or areas for improvement.
• Prioritizing corrective actions: Focus efforts on problem areas and implement tailored solutions, such as strengthening controls or training teams.

Interpreting Shrinkage Rates

Very high rate

A very high shrinkage rate signals a serious issue, which could be caused by:

• Inventory errors or unreported spoilage/losses.
• Internal or external theft.
• System management problems (e.g., software misconfiguration or supplier delivery discrepancies).

High rate

A shrinkage rate that is still significant but less critical. It may indicate:

• Small but frequent thefts.
• Minor management errors.
• Undeclared breakage or losses.

Negative rate

Negative shrinkage is rare but possible, indicating that physical stock exceeds theoretical stock. This may be caused by:

• Errors during receipt or inventory counts.
• Poorly documented returns from suppliers or customers.

Low rate

A low shrinkage rate is acceptable and reflects good management practices, such as:

• Rigorous stock control.

• A well-defined loss management process.

• A trained and vigilant team.

Product details per site

The detailed breakdown of shrinkage per center provides a list of products contributing to inventory losses. This helps:

• Identify causes: Detect thefts, breakage, or other issues.
• Prioritize corrective actions: Focus on addressing losses for sensitive items.
• Optimize purchases and stock: Avoid overstocking or unsold products.
• Monitor trends and anomalies: Respond quickly to unusual patterns or events.