A shrinkage in inventory means a loss in profit. Though it’s an experience that you don’t want to face, many businesses and retailers end up having a discrepancy in the records of their merchandise and their actual physical count. One way to address this issue is to hire a security company in Glasgow.

In this article, we’ll talk about the common causes behind stock shrinkage — and how better security can help.

Common Causes

Here are the three most common culprits why businesses report stock shrinkage.

Theft. Many security companies in Glasgow can testify to the rampancy of employee theft in warehouses. According to studies, 38 to 42% of inventory shrinkage can be attributed to employee theft. If your warehouse is also open to the public, you also have to be wary of shoplifters. Consumer theft is another reason why businesses fall short in their actual inventory count.

Merchandise damage. When a product is damaged, it is considered unsellable. Hence, causing you to lose some profit. Damages don’t just refer to physical ones (e.g., cracks, water damages). A perishable merchandise is also deemed damaged if it goes past its expiration date. Merchandise damage can be attributed to natural causes, handling and shipment mistakes, and even vendor fraud, among others.

Administrative errors. If an employee miscounts, uses a wrong unit of measurement, or erroneously encodes data, it can lead to inventory shrinkage. These human errors can be prevented by conducting proper training and incorporating automation tools in your inventory management process.

Up Your Security Game

One effective way of countering theft within your premises is to tap one of the most reputable security companies in Glasgow. By having visible security personnel, you can deter outsiders (and even employees) who will attempt to steal from your inventory. It’s also advisable to pair this measure with additional, strategically-placed CCTVs and surveillance systems. These will be beneficial, especially during busy seasons.

You should also be mindful of giving access to your warehouse and other important areas in your business property. Apart from equipping your doors and gates with top-quality access controls, you have to conduct thorough employee vetting. Be careful of choosing who can enter where your inventory is stored.

Training is also important. Not just for employees who have access to inventory but also for those on the procurement, logistics, and administrative side. As already mentioned, it’s also better to use an automated inventory management tool to reduce human errors.

There are different ways in which you can reduce shrinkage in your inventory. Addressing it early on is important to prevent your business from incurring significant profit loss.

Looking for a top-tier security agency? Focus Management Scotland Limited is a highly commended security company in Glasgow, and one of their specialties is to help clients reduce stock shrinkage. Their security guards are comprehensively trained to keep any kind of asset or premises protected and meet all your security needs. Learn more about them at http://www.focussecurityscotland.co.uk. You can also email them at [email protected] or give them a call at 01415 642 952.