The many forms of shrinkage
Purchasing & stock
Wrong quantities, excess holding, short deliveries, invoice errors, emergency buying, stale contracts, poor specifications and weak controls.
Where it comes from
Purchasing shrinkage often starts with good intentions — ordering a bit extra to be safe, sticking with a familiar supplier rather than checking the market, accepting a delivery without weighing or counting it against the invoice. Each decision is reasonable in isolation. Together, they mean the business is quietly paying for more than it needs, and sometimes for goods it never actually received.
The money issue
Cash tied up in stock sitting on a shelf is cash that is not available for anything else in the business, and an unchecked short delivery is money paid for something that was never delivered at all. Purchasing is one of the few shrinkage categories where the loss is often fully preventable with nothing more than a consistent checking habit.
Describe what is actually happening in your business and Emma will ask the right follow-up questions before recommending anything.
Ask Emma about purchasing & stock