3 Tips For Reducing Shrinkage Within Your Business

For almost all businesses, some form of “shrinkage” is bound to take place. And while it’s not something that any business looks forward to, having products that don’t get paid for or disappear in one way or another is just part of the game. But luckily, there are things that you can do to reduce that amount of shrinkage you have to deal with.

To help you see how this can be done, here are three tips for reducing shrinkage within your business. 

Strategically Place Security Cameras

Oftentimes, if someone thinks that the chances are high that they’ll get caught stealing from your business, they likely won’t take the risk of doing so.

To increase both your customers’ and your employees’ awareness that their actions are being watched, Jasmine Glasheen, a contributor to BPlans.com, suggests that you strategically place security cameras in areas where people might ordinarily take something without paying for it or tracking it. For most businesses, the best places to put these cameras are by checkout counters, entrances and exits to your establishment, and in the areas where you keep most of your inventory. 

Not only will having security cameras and posting signage about the security cameras help to discourage people from taking advantage of your business, but you can also go back and look at the footage if and when too much shrinkage starts taking place. 

Take Temptation Way From Employees

While you might think that it’s your customers that you need to be most on guard against, many businesses have to deal with employees being a part of their shrinkage issues as well. 

To better monitor this, Aaron Smith, a contributor to Business Know How, shares that you should regularly train your employees about how to spot or reduce shrinkage. Also, if you’re able to, you may want to consider how you can limit the amount of product that you have out in the open, by using something like an industrial vending machine or other alternative. 

Be Extra Careful When Taking Inventory

Part of the training that you give your employees, and a process that you should be very much a part of if you’re concerned about shrinkage, is the inventory process. 

According to Amma Marfo, a contributor to Chron Small Business, it can be helpful to train employees in all areas of doing inventory but to have specific employees who are in charge of certain parts of the inventory, like accepting and opening new shipments. This way, you can hopefully create a redundant system where nothing slips through the cracks.

If you’re wanting to reduce the shrinkage that your business experiences, consider using the tips mentioned above to help you learn how this can be done.