Guide

Administrative Shrinkage Prevention

As detailed in our research, the majority of unknown loss is administrative error, not theft. Fix your processes before you buy more cameras.

Mandatory Receiving Protocols

  • No Blind Receiving: The person unboxing must physically count every unit and check it against the packing slip.
  • Immediate POS Entry: Inventory is not considered "received" until it is successfully committed to the POS database. Do not put items on the floor before this happens.
  • Discrepancy Log: If a vendor shorts you 2 units, log it immediately. If you accept the invoice without noting the short, you have instantly created 2 units of shrinkage.

Register Protocols

Improperly processing returns (e.g., refunding the money but forgetting to return the item to inventory in the system) is a massive source of error. Institute strict register training and require manager approval for returns over a certain dollar amount to enforce process adherence.