Home > Run and Grow > Risk Management > Key Techniques to Prevent Inventory Loss and Shrinkage: Part 2

Key Techniques to Prevent Inventory Loss and Shrinkage: Part 2

By: SmallBizClub



In Part 1 of our series, we discussed the first three of seven ways to protect your inventory from theft. In this second part, we look at four more techniques that you can implement in your physical store or warehouse, in order to cut down on inventory loss caused by theft or shrinkage.

4. Implement an Anonymous Whistleblowing Procedure

Unfortunately, it isn’t just your customers and shoppers that potentially steal from you. Sticky fingered employees can cost a shop a huge amount of money every single month. As well as being a positive employer and ensuring that your employees are happy, there are other steps you can take.

One method of reducing employee theft is to implement an anonymous process for honest employees to identify dishonest ones, and to identify any areas where they think that theft might be occurring from within. Even implementing this type of policy should be enough to reduce or eliminate theft because it will make it much more difficult to get away with theft.

5. Use CCTV

CCTV may attract controversy in some cases, but there is no doubting its reliability as both a preventative and supporting measure to prevent theft and loss. It can be implemented in stock rooms to prevent employee theft and it can be used in a shop in order to deter shoplifters from taking your stock.

Another form of retail loss is burglary or theft. Place CCTV systems around the exterior of the property and ensure that you cover all potential entry points. Entry points can include doors and windows, but consider hatches and even those sections of walls and other perimeters that could offer a way in. CCTV systems are often enough to prevent theft of this type but, when they don’t prevent burglary, they can be used to recover items and determine who is responsible for the theft.

6. Don’t Become Complacent Once You Do Install CCTV

CCTV systems are effective when placed and used properly. However, just because you have this type of system installed does not mean that you can sit back under the belief that your property and your inventory are fully secured.

CCTV systems should be turned on, and you should conduct regular checks to make sure that the systems is fully operational. If you make any changes to your property, determine whether your existing camera placement still offers total security. CCTV and security system consultants can ensure that every possible theft point and entry point is covered, and you can even consider using a security company to conduct perimeter checks, or hire a security guard if you have particularly high security concerns.

7. Use Physical Security Measures to Prevent Burglary

Ensure that exterior doors are modern, utilize effective locking and security systems, and remember that doors are still only one potential entry point. Secure windows, even the roof, and introduce security shutters, roller doors, grilles, and other physical security measures that will prevent theft.

Ensure that you choose security doors that are relevant to the type of property and the type of entry that they are used for. Ensure that you only give access details, keys, and security codes to a limited number of people. The more people that have these, the greater the potential risk of theft. Also, as with CCTV systems, you do need to ensure that you actually use your new security features. Leaving doors unlocked, failing to pull rollers down, and otherwise leaving the property unsecured will not yield the level of security that you are looking for.

Protecting your assets is an important part of business. Consider paying for CCTV and new security shutter doors as being an investment in your business because it will protect your inventory and it will, over time, increase both your revenue and profits as your security begins to limit shrinkage and loss. You don’t have to have state of the art equipment, or pay for advanced security consultancy services, but you should implement security procedures that are in line with the value of your inventory and the level of theft that you have to endure.

Author: Security Shutter Doors’ installation service ensures that your store, warehouse, or other facility, has the security system and security features that it needs in order to prevent loss and even damage caused by criminal acts. Protect your business and your assets.

Published: September 19, 2016

Trending Articles

Stay up to date with
small biz club logo


SmallBizClub.com is dedicated to providing small businesses and entrepreneurs the information and resources they need to start, run, and grow their businesses. The publication was founded by successful entrepreneur and NFL Hall of Fame QB Fran Tarkenton. We bring you the most insightful thinking from industry leaders, veteran business owners, and fellow entrepreneurs. Follow us on Facebook, Twitter, and LinkedIn.

Related Articles