Inventory shrink is the loss of products from employee or customer theft, inventory and accounting errors, and loss due to things such as spoilage or damage. Maintaining a low shrink rate is one of the most important aspects of maintaining profitability.
Retail shrink, however, is multidimensional and addressing the problem effectively requires an all-encompassing approach to security as a way to improve all operations rather than seeing security as just a tool to catch criminals.
Improving storewide operational execution by using video surveillance technologies helps to maintain high levels of execution. When great processes are in place anything out of sync stands out and can be corrected quickly. This can help reduce loss due to accounting, lost or forgotten inventory, and spoilage. Maintaining high levels of execution also helps employees spot shoplifting easily, and helps them to refrain from the temptation themselves.
Reduce Accounting Errors
Security technologies can provide a wide view of the store and its operations but it can also help zero in on POS to help identify and correct errors or acts of fraud.
Another important aspect of preventing shrink is how well you protect your assets. Using tools such as access control is essential in controlling product storage areas.
Video Surveillance is a Crime Deterrence
The two most effective ways to deter theft are to make it too difficult and too risky. Video surveillance technologies are highly effective because they make it difficult to commit shoplifting without getting caught. This is a very important factor as preventing theft is much more cost-effective than catching it.
Video Analytics are Golden
Video analytics are great for telling you what products are performing well and why, but they can also provide insight as to why certain products or particular areas of the building see much more loss. It can also help you manage on-shelf availability and avoid over or under inventory. It also provides information that allows you to better evaluate store operation in relation to patterns of theft and allow you to make adjustments to store layout, product location, and employee engagement.
S-Tron has over 20 years of uncompromising industry experience and is dedicated to helping retail operations reach their security goals. From video surveillance and access control to intrusion detection and business analytics, S-Tron beats the competition coast to coast.
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