Product shrinkage is a serious problem that can have a big impact on business profitability. In today’s economy, when many companies are still struggling to keep revenue coming in, losing some of this revenue because of preventable situations is tough to swallow. Electronic tracking systems have been developed to help stores and distributors alike prevent product shrinkage. There are a few key answers for people wondering how electronic tracking can prevent product shrinkage.
Providing More Info About Shrinkage
One of the points that should be understood by professionals curious about how electronic tracking can prevent product shrinkage is the tremendous increase in information that companies get from electronic tracking. If some of your inventory is lost, damaged, or stolen, electronic tracking systems will give you a definitive answer on where it is and when the loss occurred. This additional information can prove integral in your efforts to understand where and why shrinkage is happening.
Stopping Retail Shrinkage
If your business has a storefront, it is almost certain that some of your shrinkage occurs there. According to the Association of Certified Fraud Examiners, over 78% of retail shrinkage is caused by employee theft and shoplifting. When thinking about how electronic tracking can prevent product shrinkage, remember that these tracking systems make it much easier to stop both employees and customers from stealing. In some cases, just having a warning about electronic tracking will help you deter shrinkage in a retail store environment.
Allowing For Mobile Tracking
In today’s interconnected world, business happens in many different locations. Some members of your team might be working from home, while others might be on a business trip. Many of the more sophisticated electronic tracking systems today are compatible with mobile devices like tablets and smartphones. This means that wherever your employees may be, they can keep an eye on your inventory to help prevent shrinkage before it occurs.
Unifying Inventory Tracking Platforms
If your company is a large one, there is a chance you ship products to different cities, states, or even countries. For these kinds of organizations, it is often a challenge to communicate clearly and consistently across state and country lines. This challenge often leads to shrinkage as things get lost in translation from one office to another or from the shipper to the recipient. With an electronic tracking system, you never have to worry about someone in one place using a different system to monitor inventory. Keeping a consistent platform in place for inventory tracking means that everyone is on the same page, and can do their part to reduce the occurrence of shrinkage throughout the entire supply chain.
Shrinkage is a fact of life for people involved in logistics. It is something that businesses must deal with and account for during their planning and forecasting. However, shrinkage is also something that can be minimized with the proper tools. When you are considering ways to make your supply chain more efficient, make sure that you think about how electronic tracking can prevent product shrinkage. This type of tracking could provide a huge return on investment by protecting your valuable inventory from theft or damage.