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There is no one shrinkage solution for all retailers since every retail store is unique. Solid accounting procedures and systems must be developed specifically for your store and scrupulously followed at ALL levels. Employees must be properly trained to follow correct procedures. Management must follow up to see that procedures are being followed. In other words, good management will help reduce the temptation and conditions favorable for dishonesty and theft and reduce your shrinkage losses.
Shrinkage is a variable and controllable expense. Management's attitude toward and tolerance level for shrinkage is the controlling factor.
The main reason for the shrinkage is the theft by employees. If you can introduce a system to monitor the staff, you can control the shrinkage to some extend. Other possible reasons, error while receiving, improper handling, wrong punching, etc.
1- Confidence employees
2- Follow-up officer
3- Stock Controller.
4- System adminstrator.
5- Double check and Matching between Excel sheet & System.
6- Daily report.
7- weekly inventory.
