How to Reduce Shrinkage of Inventory (loss) in Supermarkets
Most retail companies and supermarkets are wary of inventory shrinkage. Several factors including theft, damages, spoilage, or administrative errors in stock movements can lead to your inventory shrinking. To prevent inventory shrinkage, you need proper strategies. One of these strategies is integrating your inventory management with inventory management software and optimizing your operational business processes. This blog discusses other key strategies that will help you mitigate inventory shrinkage
Safeguard your Inventory
Slow-moving inventory can tie up your capital and leave you with fewer funds to invest in your business. Safeguarding your integrated inventory software helps you overcome this problem. Inventory software helps process data, including estimating the value of all objects owned by the office, business and firm. Here is how you can keep your inventory safe:
Barcode Your Goods
A barcode uses machine-readable lines along with spaces, shapes, and patterns to provide valuable information or data. Each barcode is unique and uses numbers and letters to distinguish between classifications of items. Employees use specialized barcode scanners to scan these codes.
Barcodes offer automated product identification, fast recognition and effective implementation of data. Though the complexity of your applications may vary, the use of barcodes will reduce your overhead costs and cut down on training time and labor, improving employee productivity.
Barcode scanners are error-free, which is far better than manual scans.
Find the Right Person to Manage Your Inventory
An inventory manager manages the inventory tracking system to record product deliveries, shipments and stock levels. He also evaluates deliveries, shipments and product levels to improve inventory control procedures, apart from analyzing daily product and supply levels to anticipate inventory shortages. In addition, your inventory manager must have in-depth inventory reports, including the stock quantity, incoming and outgoing stocks, depreciation and stock valuation, among others. Finding the right person to manage your inventory becomes very crucial. An HRM software helps you choose the best-suited person for the job, by using key trackable indicators.
Improve In-Store Security
To prevent inventory shrinkage, your warehouse and physical outlet must be secure. Large stores with large inventories need to have the best security in place. Install CCTV cameras around your warehouse and store corridors to monitor the movement of employees, visitors, catch potential trespassers and avoid security breaches. Use a digital door lock and provide warehouse access only to those working in the inventory.
Keep a Close Eye on Inventory Levels
Periodic monitoring of your inventory levels can help prevent inventory shrinkage. Set your minimum inventory level. Once your warehouse capacity is close to the minimum level, it’s time to order additional stock. Make sure you don’t order in excess to avoid product decay and obsolescence. Inventory forecasting becomes vital to determine the right number of purchases.
Leverage Data to Pinpoint Purchasing and Allocation
The right timing has a lot to do with inventory success. If retailers delay their purchase orders, they will be in trouble. Buying too early can be equally risky with additional inventory sitting on the shelf and cash flow drying up.
Accurate demand forecasting will tell you whether purchase deals and their timing are a good match.
Reduce Inventory Shrinkage through Ginesys Inventory Management
Managing inventory in your supermarket requires manpower, a sound understanding of numbers in terms of stocks and the money involved and the need to keep track of every product available. An advanced inventory management software rules out every manual process in stock management and improves accuracy. The latest inventory management solutions crafted by the experts at Ginesys, offer best-in-class features to boost your inventory management. Leverage the latest technology, reduce inventory shrinkage and enhance customer satisfaction with Ginesys. Get in touch with us to know about our inventory management solutions.