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7 Reasons for Inventory Shrinkage

May 1, 2024

How many times have you suffered losses and incurred costs to compensate for shrinkage in inventory??

7 risks when inventorying inventory that cause the goods to be lost without being sold!
Inventory holding operations, as well as stocktaking, involve some risks, the most important of which is inventory shrinkage, that is, the loss of goods without selling them, which in turn leads to lost costs and lost profits to compensate for the shortage in inventory.
The most important factors that may lead to inventory shrinkage are:

  1. Inventory error: which can appear when incorrect quantities of goods, products or raw materials are specified in a quantity less than the recorded quantity
  2. Embezzlement and manipulation by employees through the seizure of goods and products, thus leading to financial losses for the company
  3. Delay in inventory: may lead to an incorrect assessment of the necessary quantities of goods and raw materials
  4. Supplier fraud: through theft or tampering occurring during transportation from the supplier's warehouse to the merchant's warehouse.
  5. Errors in the use of technology: such as barcode or inventory management system errors
  6. External influences: such as natural disasters that may lead to inventory damage, changes in the market, or political events
  7. Manipulating the data recorded in inventory records and thus determining the wrong quantities of goods or raw materials.

Enjaz Gate Company offers you a trained and qualified work team to carry out inventory inventory accurately and effectively
Follow us in the previous post to avoid inventory risks
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