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Shrinkage can be caused by many actions. From theft (when employees steal goods) to wrong inventory count and audit, and most importantly from wrong purchasing policies.
To prevent this, you need to make regular statistics for your stock to determine what items are sold regularly and the determine the time needed for shipment. this way you schedule and fix your purchases to avoid shrinkage, based on the statistics and available stock.
And as for theft, it is preferable to install full security system in your warehouses.
Regards.
Josiane Elias
