Inventory loss is a major problem for modern commercial enterprises. Billions of dollars’ worth of supply chain goods disappear every year, leaving businesses reeling from the financial and operational consequences. While these losses are staggering, the truth is you don’t have to fall victim to them.
Learn what to do about the culprits of product loss in warehouses and how to take action to protect your bottom line and optimize your operations.
Disorganized Shelving Systems
When shelving systems are cluttered, mislabeled, or poorly structured, finding the right items in time can feel impossible, leading to misplaced or forgotten goods. Organizing your warehouse inventory is vital to ensuring operational efficiency and reducing errors.
Start by standardizing your shelving systems and using clear labeling for every section. Consider implementing a digital inventory management system that tracks stock in real-time and gives employees an exact blueprint of where items are located. With an orderly setup, your products stay where they belong and are readily accessible when needed.
Employee Theft
It’s an uncomfortable reality, but theft does happen. Start by implementing straightforward security measures like clear bag policies to monitor what comes in and leaves the premises. Install security cameras in key areas without disrupting your team’s workflow.
Beyond policies, create a company culture centered on transparency and mutual respect. When employees feel valued and included, they are more likely to do what’s right and support the business they are part of.
Picking Mistakes
Mistakes during the picking process often go unnoticed until it’s too late, leading to incorrect shipments and product write-offs. Training your team thoroughly is essential in minimizing these errors.
You can also implement a system for double-checking orders during the packing stage. Whether through a supervisory sign-off or technology-enabled scanning systems, this can help ensure every product makes it to the right destination.
Improper Documentation
Lapses in documentation can spiral into larger issues, including inventory miscounts and supply chain delays. Implementing stringent standards for inputting and tracking data is crucial.
Transition away from manual recording methods and move toward integrated warehouse management software that provides real-time updates. This way, you’ll know where everything is at all times.
Rodents and Other Pests
Pests lurking in your facility threaten the integrity of your inventory. These unwelcome intruders damage packaging, spoil products, and invite contamination that compromises your operations. The solution is to improve pest control in your facility.
Schedule regular inspections and seal potential entry points to keep rodents out. Work with pest control professionals to develop preventive measures like bait stations and sanitation protocols. A proactive pest management plan protects your goods and reinforces a clean, professional warehouse environment.
Reduce Inventory Shrinkage for Your Business
Now that you know what to do about the common culprits of product loss in warehouses, you can take steps to protect your assets and improve efficiency. Addressing these issues will help create a more effective operation, support business growth, and strengthen your bottom line.
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