Accurate stock management is essential for any business that deals with high levels of inventory or assets. It helps companies to keep track of their stock levels, identify any shortages or excesses and make informed decisions about restocking and distribution.
One particular issue which often goes uncorrected for long periods of time is stock shrinkage. Shrinkage refers to the reduction of inventory that occurs when items are not distributed but are no longer available to pick. It can also occur when a shipment is reported to have more inventory than is physically present. On average, retail shrinkage is estimated at around 2% of total sales. This can have a significant impact on businesses through either lost sales, write-offs, and profitability. Common causes of shrinkage are theft, poor inventory management, fraud, and administrative error.
If an inventory is not properly maintained, it can have serious consequences for the business beyond the financial implications, such as reduced efficiency and low productivity.
As the famous business strategist Peter Drucker once said “What gets measured gets managed”.
We would add to that quote by Drucker – What gets ACCURATELY measured gets managed.
This is why it is so important to have accurate and reliable stock data. If you want to ensure that your stock management is top-notch, consider bringing Orridge in to handle your company’s inventory accuracy.
Trusted History
Orridge is a trusted and experienced independent stocktaking service that has been around for over 175 years! Our teams of highly trained and experienced stock auditors use the latest technology and techniques to ensure accurate and efficient stock audits. Plus we provide valuable insights and recommendations for improving inventory management based on the results of the work we carry out.
There are numerous benefits to using an independent service like Orridge. Here are just a few.
Accuracy: An independent service is objective and unbiased, which means the results are more likely to be accurate and reliable.
Efficiency: An independent service can handle the task efficiently and free up internal resources for other areas of the business.
Cost Effectiveness: Outsourcing to an independent service provider can be more cost-effective than conducting the process in-house.
Expertise: An independent service like Orridge has a team of highly trained and experienced auditors who are equipped with the latest technology and techniques to ensure accurate and efficient delivery.
Insights and Recommendations: An independent service like Orridge can provide valuable insights for improving inventory management based on the results and ongoing support from Orridge.
Shrinkage is a universal problem
Every business suffers shrinkage, and its causes are many. Using an independent stock audit service in which an external party conducts checks and audits of process outputs can verify the accuracy of the business’s records. This is an effective way to eliminate shrinkage caused by theft, fraud, process failings, and poor administration.
