Inventory shrinkage represents a serious, ongoing problem for retail operations in just about every industry vertical, adding up to tens of billions in losses per year. This unwanted reduction in inventory can occur for all sorts of reasons, many of which may go completely undetected without the proper mechanisms in place to find and fix them. This leads many retailers to view shrink as “just the cost of doing business” — when in reality, Nexxus iSBT can uniquely and dramatically reduce this hidden cost factor.
Nexxus Group has encountered client shrinkage rates that vary from around two percent to percentages in the mid-teens. Fortunately, we can say without boasting that when we get involved in these issues, the shrinkage rates do some significant shrinking of their own. To point to just one example among many, our iSBT services reduced a bakery retailer’s shrinkage rate by 60 percent.
Here are four ways iSBT reduces inventory shrinkage for retailers:
iSBT Investigates and Reports Shrinkage Problems
When you engage our iSBT services, we get actively involved in rooting out the source of your shrinkage problem. Our investigations include daily reports that check for any anomalies, trends, and exceptions to normal patterns. These problems may originate at the supplier level or at the store level. The moment we detect anything unusual, we report those findings to suppliers and retailers so that they can address the issue at the appropriate level.
iSBT Keeps Retailers on Their Toes
Scan-based trading can provide retailers with a wealth of information about their inventory and shrinkage issues. Retailers tend to grow more vigilant when they know that theirs are not the only eyes on the problem. When iSBT is involved, these retailers understand that we are monitoring their inventory movement in great detail. This extra supervision spurs them to adopt and maintain more thorough monitoring practices of their own, which naturally helps to reduce shrinkage.
iSBT Catches Data Errors Before Shrink Happens
Preventing shrinkage is always preferable to having to fix an existing shrinkage problem. Our iSBT services’ early detection capabilities make that goal a reality by identifying situations where incomplete, inaccurate, or contradictory data will lead to shrinkage. iSBT catches data discrepancies such as unreported sales, sales duplication, and sales volume anomalies before payments are made. This ensures that suppliers receive correct payment for every item scanned.
iSBT Can Identify Unshelved Inventory
Inventory that sits in the back of a store indefinitely can eventually disappear as shrinkage casualties — especially when it’s up to the stores to place those products on the shelves. Some of our investigations have uncovered multiple cases of products that never once saw the light of day on store shelves. That’s where iSBT can prove immensely valuable by monitoring product shipments to stores and revealing discrepancies between shipped inventory and reported sales or physical counts.
If your business suffers from shrinkage issues, the Nexxus Group can help. Contact us, and let’s discuss your situation.