There are basically 3 categories of people who can be responsible for inventory theft. These are the employees, customers, and suppliers or contractors.
1. Employees – this comprises a majority of the reported theft of inventory. Reasons for their theft can range from getting gifts for family and friends, dissatisfaction from work or management team, or some just take advantage of the lack of security.
2. Customers – many customers shoplift for a variety of reasons. Some do it for the adrenaline rush, some steal to resale or give away.
3. Suppliers or contractors – this can be a product of suppliers overcharging you, not giving the proper amount of inventory, or wrong reporting of delivered goods.
What can be done?
Inventory Management System
One of the main answers to this issue is having a very effective inventory management system. It does not need to be a fancy software system. Although that would make implementation much easier. An efficient system where you have multiple checks and balances among different people is a good way to help minimize loss.
Secure The Selling Area
Arrange your display in ways that can dissuade shoplifting. Small items should not be placed in areas with high traffic or unseen spots. If possible, do not use racks and shelves that span from floor to the ceiling.
You can also install/employ the following to help detect and deter shoplifting:
1. Security Cameras
2. Security Guards
3. Security Mirrors
Communication and Training of Employees
Let your employees know that inventory is closely being monitored. Loyal employees can help you by being proactive against theft. Other employees can be deterred when they know they are closely monitored. Educate your staff on how to identify and handle suspicious shoppers.
Theft is just one of the many risks and dangers your business will face. How protected are you when things go wrong? Get the right insurance for your business to ensure continuity during a crisis. Talk to a specialist today. At Western Pacific Insurance, we put our clients first by offering them policies that they can afford. Learn more about our products and services by calling our agency at (702) 932-3105. You can also request for a free quote by clicking here.