Is shrinkage a big problem for supermarkets
Eliminate the shrinkage problem in supermarkets with five effective strategies
One of the best practices for inventory management in supermarkets is physically counting your inventory. Now, imagine on one fine day, you start counting your inventory, and you find that the physical records do not match the digital records. The reasons can be any:
• An administrative error occurred when the employee made a mistake in point of sale, ticketing, or accounting of the product sold.
• One of the food products expires without being sold or goes bad, resulting in an operational loss.
• A customer steals a product by hiding it, changing the price tag, or any other way.
• A vendor shorts an invoice or steals a product while unloading the inventory.
• A customer returns the product after using it or returns a product bought from counterfeit money to enjoy the refund money.
• An employee engages in theft by stealing cash, ignoring scanning of all items, showing fake returns, issuing deceitful gift cards, or stealing merchandise.
All these reasons can lead to significant losses for supermarkets. Therefore, supermarket managers and owners must employ effective strategies to save their stores from shrinkage losses.
Implement an ERP software
An ERP software that keeps an account of all the inventory in your warehouse and store can solve your shrinkage problem. It tracks the location and status of the stock from the point you receive it from the supplier to delivery to the customer. You can reduce your manual handling of merchandise, and thus, get more accurate records.
Websys Infotech can help you with the best ERP software that manages inventory effortlessly. It is easy to learn and use and is a perfect fit for any size of supermarket store. We also help you with support services whenever you face any technical glitches or have queries.
Physically count your stock
Despite implementing inventory management software, you must employ people to count your inventory. You must have two individuals for this job – one for counting and another for verification; also, change the duties between these two employees every month.
Employ measures to combat shoplifting
You can hire security officers to keep an eye on potential shoplifting events. Alternatively, you can implement electronic security systems or cameras across your store to check for any theft. Lay down a shoplifting policy and keep it in a place where every person can read it.
Place the objects in your store so there is enough light, at a height that can be easily reached, or install mirrors. The floor design must be strategic to prevent shoplifting.
Offer discounts on products about to get expired
Vegetables, fruits, or packed products with a stated expiry date may be a loss when they go bad. Instead of suffering a loss, you can sell them at a discount. You can use them in the internal kitchen before it expires. Or, you can offer them as free samples to customers.
Employ capable employees
Employ the right set of employees who understand their job well and do it honestly. They must focus on their work at the point of sale, ticketing or while receiving goods from vendors, where most errors occur.
The same intelligence must be displayed while checking the condition of customers’ returned goods. Thus, POS, floor, and warehouse employees must have the knowledge and expertise in all these areas and be trained well to avoid inventory shrinkage.
Inventory shrinkages are part and parcel of a supermarket. You cannot just accept this and wait to see how much you lose in shrinkage every year. Instead, apply the solutions or tricks mentioned above to minimize shrinkage losses.
Let Websys’ ERP software manage your inventory for effective results.