Causes of Inventory Shrinkage

After reading this week’s material, answer the following question in the Forum:

– Discuss the types of threats commonly encountered in retail loss prevention

Shrinkage has been acknowledged to be a significant inefficiency that few businesses are willing to manage. Some of the main threats encountered by enterprises in retail loss prevention include shoplifting, employee theft, vendor fraud, administrative errors, and unknown losses. Most businesses have significant exposure to both inner and external theft cases from both the staff and the clients. A study conducted by Fabregas (2019) demonstrates that shoplifting accounts as the leading cause of inventory shrinkage. More than 36% of shoplifters take advantage of overlooked parts in a business store. Staff theft is also…

– Identify strategies for neutralizing these threats

Some of the main strategies that can be utilized to neutralize these risks include: implementing inventory management processes. They ensure stock revenues, destruction tracing, and cycle counts are managed accurately. Retailers should also develop and disseminate crime audit methods that aim at reducing…