In traditional retail, shoplifting and other forms of inventory shrinkage have historically been serious hindrances to profitability. Unfortunately, the more a retail operation grows, the more difficult it can be to protect its inventory.
Operations where customers are allowed to handle merchandise as well as businesses with high employee turnovers can find it especially difficult to keep their inventories safe. As more unvetted people come in contact with inventory, the greater the risk of theft, misplacement, and breakage.
Realistically, it’s impossible to eliminate all inventory losses that aren’t due to sales. External factors like product obsolescence and natural disasters can’t always be controlled, after all. Fortunately, there are plenty of methods to minimize some factors that lead to inventory shrinkage. Here are a few ways you can control inventory losses at your physical store.
1) Keep Stock Visibility High with Integrated Checkout and Inventory Systems
Your point-of-sale (POS) system and electronic cash register (ECR) should be set up to automatically update your inventory whenever purchases are completed. This will help ensure better visibility of your available stocks and close any gaps in which discrepancies between your recorded and physical inventory may occur.
The Maya Terminal has become a favorite solution of Philippine-based physical retailers partly because of its ability to integrate with contemporary ECRs and store inventory management systems. Once set up, purchases recorded through a Maya POS terminal will automatically update your inventory systems without the need for human intervention, reducing errors and opportunities for pilferage.
2) Conduct Regular Inventory Audits
Even with a Maya business terminal, your inventory will still need to be audited periodically. Regular auditing will help identify potential losses from theft, improper storage, technical glitches, and other factors that automated systems will not necessarily reveal.
3) Train Employees to Audit Inventories Properly
It’s not enough to simply order regular audits for your inventory. You need to make sure that employees tasked with the job are able to accurately identify potential inventory issues such as wrong discounts, mislabeling, product expiry, and obsolescence, just to name a few. Employees should also be versed in the proper procedures for tagging items, conducting physical counts, and reconciling discrepancies.
4) Improve Your Hiring Practices
Employee competence and integrity are critical for preventing inventory shrinkage. Avoid the urge to hire whoever can fill needed roles and instead take the time to run thorough background checks on applicants before offering them a contract.
5) Reevaluate Your Return and Exchange Policy
If left unmanaged, return and exchange fraud can significantly increase your inventory costs and degrade your business’s profitability. Review your current return policies and make any changes needed to prevent fraudulent returns.
6) Implement Store Security Best Practices
Proper lighting, strategic arrangement of store displays, and sufficient CCTV cameras all serve to deter casual shoplifters. If you have the budget for it, consider hiring security personnel to deter serious attempts at theft and create a safer shopping environment for both customers and staff.
7) Invest in Proper Warehousing
Poor warehousing can lead to inventory losses through mismanagement as well as direct damage to sensitive items. Whether you’re outsourcing your storage or doing it in-house, make sure that proper shelving, climate control, security, and staff management are taken seriously.
Maintain the Integrity of Your Inventory with the Help of Maya Terminal
Using the Maya Terminal POS device at your store is one of the ways to keep your inventory safe and more visible. Create your Maya Business Manager account today to order this device that seamlessly integrates into your store’s ECR and inventory management systems. Also check out the Maya Terminal price table to learn about the MDR (merchant discount rate) for different electronic payment methods.
Signing up for a Maya Business Manager account gives you access to the Maya 1-2-3 Grow bundle. Maya 1-2-3 Grow entitles you to a 1% MDR discount on all QR Ph transactions for 3 months after signing up. That’s equivalent to PHP 14,600 in transaction fee savings for every PHP 1 million in QR Ph sales.
The Maya 1-2-3 Grow bundle also lets you open a Maya Business Deposit account for your settlements. With a market-leading 2.5% per annum interest rate, you’ll grow your savings by PHP 25,000 each year on just a PHP 1 million deposit. You’ll also earn more savings with Maya Business Deposit’s zero maintaining balance and free transfers via InstaPay and PesoNET.
Lastly, the Maya 1-2-3 Grow bundle also entitles you to a Maya Flexi Loan offer of up to PHP 2 million in just 3 months. To get a better loan offer, keep using Maya as your primary processor for all wallet and card payments. The more you use Maya, the better the loan offer.
Sign up for Maya Business Manager today to enjoy seamlessly updated inventories with a Maya Terminal and one-of-a-kind business growth opportunities like Maya 1-2-3 Grow.
