Minimize Shrinkage In Your Business This Year

One of the main things that you always need to be aware of in any business is your losses. These can come about by many means, and when it happens due to causes that you can’t fully ascertain, that is what we refer to as shrinkage. Minimizing shrinkage is a vital part of keeping any business truly profitable. But how do you actually do this? In this post, we are going to look at some of the best and most powerful ways to minimize shrinkage in your business this year. As long as you are following these tips, you should find the situation greatly improves.

 

Invest In Surveillance

One of the major causes of shrinkage is theft. This is especially a problem for retail businesses, as this obviously includes shoplifting carried out by both staff and customers alike. In order to help work against this, you should consider installing some surveillance on the premises. Just having some security cameras up is often all you need to do to help dissuade people from stealing and shoplifting, and when it doesn’t dissuade them it means that you have evidence – evidence you can often use to secure your losses back again through a variety of legal schemes, or by taking legal action against the individual in question.

 

Secure The Premises

As well as putting up some kind of surveillance, you’ll also want to think about some of the things you can do to help secure the premises, so that people are less likely to be able to steal from you in the first place. Some of the more effective forms of security are those that are generally impenetrable, such as roller shutters on your warehouse doors, for instance. The better you secure the premises, the less likely it is that you are going to have to worry about significant shrinkage.

 

Improve Your Returns Procedure

Until a few years ago, it was not generally realized that one of the major causes of shrinkage worldwide for all kinds of businesses was return fraud. This is where a customer uses flaws or loopholes in a company’s returns procedure to get money back on items they never actually return. Fortunately, the way around this is simply to find some way to improve your returns procedure, so that people will not find it quite as easy to do this in future. Making it as airtight as you can.

 

Be Careful Who You Hire

You are much less likely to have to worry about theft if you can trust everyone who works for you, so there is much to be said for simply trying to be careful about who you are hiring into your company. You never know what someone is like until you start working with them, of course, but at the same time you can often get a sense of their personality if you interview them well. So tighten up your recruitment process and take great care in who you invite in to work in your business.

 

 

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