Inventory Shrink: Identification & Resolution
CFOs just HATE inventory shrinks because, no matter the cause behind them, the CFO is ultimately responsible for accurate inventory costs. So you have an inventory shrink, and your initial thought – "These products just didn't walk away by themselves – maybe thieves, or even our own employees, pilfered our inventory." While theft may be a component of the shrink, the main causes are more mundane – inaccurate product cost records, incomplete production reporting, and incorrect quality reports are the most likely causes.
Know the Signs
"We have too many shrinks in our inventory."
"There are differences between inventory on the financial statements are higher than inventory actually counted."
"I've looked into this before, but could not find the source of the shrinks."
Benefits of an Inventory Shrink Resolution Project
Faster identification of anomolies.
Better ideas to resolve issues.
Less expensive than spending funds to acquire necessary skills and experience in-house.
Inventory Shrink Resolution Case Study
If you would like to learn more about inventory shrink resolution, send Todd a message or call at 336.297.4200.