Even in this new world of retail, you must have the stock in order to sell it!

As someone who has worked in and around retail my entire career, and specifically all facets of stock management, understanding shrinkage has been a necessary aspect of most of my roles.

It would be arrogant to suggest I know it all – far from it, but what I have learned is shrinkage cannot be eradicated. Much like a well-trained ninja, lurking in the shadows of your business – it’s ready to pounce and materialise where you may not necessarily expect it!

Retail is evolving, there is no doubt about that, and the current pandemic has accelerated the changes quicker than anyone could have predicted. It’s a very different ball game to what we’re used to.

Your website is your new shop window and your warehouse is your new shop floor. Greater minds than mine have undoubtedly developed all types of risk mitigation programmes and have adapted their business to this new world, but whether you’re selling directly to customers online or through your stores, the one thing that hasn’t changed – you need to HAVE the stock to SELL the stock!

With your customers demanding more choice from you, your product ranges are becoming larger and your sales channels more complex. This comes with the added challenge of maintaining the availability of these lines, whilst minimising potential shrinkage. Businesses are relying more and more on their supply chains to meet these increased demands. It’s important for efficiency to ensure that the right product is in the right place at the right time.

It’s also fair to say that shrinkage hasn’t gone away, it has just dispersed. It’s still there, lurking in the shadows.Now though, rather than just crystallising in your stores, it is directly affecting your supply chain. An accurate stock file has never been so important!

There is a direct link between stock accuracy leaving the depot and shrinkage. Loss Prevention strategies rarely eradicate shrinkage in stores. There are many more risk factors now, leading to a chain reaction of corrupt stock through the supply chain and into stores and directly to your customer’s front door.

An SAS report determined that 13% of businesses are now outsourcing to specialist independent inventory auditors to support them in identifying the weak links and risks in their supply chains. This powerful management information, along with suggested solutions to rectify any issues, will ultimately lead to consistent and precise stock accuracy.

There is also added pressure from external auditors, seeking assurances that inventory within your distribution centres is accurate and well maintained. Our full warehouse stock take service can support this, along with our experience of working with these external audit businesses.

We have been in business for over 170 years. In that time, we have learnt a few things about supply chain shrinkage and the impact of poor picking accuracy. We specialise in mitigating the risks in vulnerable areas in the supply chain. We work with some of the biggest names in retail to stop this massive issue. It’s a hidden problem that we can uncover and help solve safeguarding reputations and margins. We know that everyone is different, so we offer a variety of solutions that work for our customers in any area of possible concern.

At Orridge, our fully trained audit teams can be on-site at any time of day, 365 days of the year to work and provide stock accuracy solutions without adversely affecting your operations.