3 IMPORTANT

LESSONS THAT CAN BOOST YOUR INVENTORY

PERFORMANCE

Lesson #1: Everyone likes inventory management software

Everyone

Employees were asked about inventory management software's effect on internal theft. Researchers found a significant difference in whether internal theft was a problem between stores that used inventory management software compared to stores that didn’t.

So, how big of a problem is inventory theft?

BIG!!In 2014 inventory theft

within the US accounted for $15 billion in inventory shrinkage!

Employees are willing to fight for inventory management systems!

Are you?

Lesson #2: The bigger you are, the more likely inventory theft is a big problem for you!

Large and medium sized companies have big inventories. Bigger inventories mean a greater need for inventory management systems.

Small businesses such as “mom-and-pop” shops, face less inventory theft because of smaller inventory levels. However they face far higher rates of cash theft.

Lesson #3: Inventory management software

improves trust and reduces inventory theft.

Employees were least likely to admit to inventory theft when inventory management software is used. Whereas businesses that used accounting software to manage inventory saw the highest amount of employees admitting to inventory theft.

Adding controls through dedicated software not only reduces the risk of theft, it also builds trust among employees. And as customer demand for lower cost products increases, all activities throughout the supply chain should focus on reducing costs that could be transferred to the customer.

Saving costs across inventory shrinkage will lead to better priced products and better profits for businesses.

Thank you for reading!