I am not quite sure when you conduct your periodic inventory count but let’s presume that you just completed the count and you noticed that you are missing $10,000 in inventory. This number might represent 100 percent of your monthly sales or maybe less than 1 percent of your monthly sales or anywhere in between. This inventory shrinkage might be substantial.
Let’s also presume that your average profit margin is 5 basis points or in other words 5 percent of each item you are selling. How much in additional sales will you need in order to make up for the shortfall in inventory?
From an accounting perspective you can just write the inventory losses off. However, from a business perspective what do you have to do in order to reduce your inventory shrinkage?
Once you have determined the reasons for the inventory shrinkage, you can develop a strategy. Some of the shrinkage might be due to accounting entries but some of it may be attributable to shoplifting. So what can you do to stop shoplifting and implement a means to start your retail theft prevention strategy?
A Checkpoint Security System could easily be incorporated into your retail theft prevention strategy and become the cornerstone to stop shoplifting. A Checkpoint Security System can be purchased from a Checkpoint Security System dealer and will cost a fraction of the inventory shrinkage you just experienced in one month.
A Checkpoint Security System must be installed by a certified technician with the correct tools and software to ensure that the system is properly tuned. Periodic maintenance and adjustments are highly recommended to keep the system at peak performance due to changes in your store layout. These systems are highly reliable and will provide many years of assistance in your retail theft prevention strategy.
For more information contact your loss prevention consultants or call 1.770.426.0547 in Atlanta Georgia.
