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Created with Fabric.js 1.4.5 of employees believe internal theft is a problem. 56% 44% theft affects your business' performance how inventory In 2014 , technology specialists discovered that a frightening number of businesses were losing big to employee inventory theft. But how big are we talking? First of all, 56% of inventory shrinkage includes all forms of shrinkage from shoplifting, to paperwork errors, to supplier fraud, and so forth. 44% of all is related to internal theft inventory shrinkage $15 Billion! That amounts to a whopping 20 40 60 double click to change this header text! how do employees view internal theft? Well it depends on store size and how inventory is accounted for. So Stores that use some form ofinventory management software 28% VS Stores that DON'T use some formof inventory management software 37% of employees believe internal theft is a problem. Employees find value in using inventory management software. Inventory managementsoftware adds controls and visibility that canreduce the threat of internal theft. Who uses inventory management software? 85% of both large and national retail chains useinventory software. 53% of local and regional retail chains useinventory software. 37% of small "mom and pop" stores useinventory software. Lesson 1: Lesson 2: This conclusion suggests two things. The first is that larger businesses have more money and larger inventories, as a result they will more often need inventory management software. Small stores, on the other hand cannot always justify inventory management software due to cost or lack of inventory. The second suggestion is that small stores are less inclined to worry about inventory theft due to a smaller supply of inventory. Employees at small stores were more likely to steal cash than inventory. This group believed thatinventory theft was a problem most of the time. Of all three groups,this group most believed inventory theft was not a problem. Large and national retail chainswere the second most likely group to claim internal theft as being a problem. inventory management software build trust? Does Yes! Employees were least likely to admit to inventory theft when inventory management software isused. This signals that by adding controls withinventory management software, you can rapidly reduce levels of inventory theft. Whereas businesses that used accounting softwareto manage inventory saw the highest amount of employees admitting to inventory theft. HOWEVE R HOWEVE R Stores that only used paper-based methods had only 6% of employees admitting to inventory theft.This leads us back to our previous point about small "mom and pop" stores. Small storesare less likely to use software to manage their inventory, instead they would probably stickto paper-based methods. The problems for small stores though, is not necessarily inventory theft -- the problems facing small stores is cash theft and shoplifting. Conclusion Inventory management software greatly reduces the prevalence of internal theft. Adding controls through dedicated software not only reduces the risk of theft, it also builds trustamong employees. And as customer demand for lower cost products increases, all activities throughout the supply chain should focus on reducing the costs transferred to the customer. Procurement, warehousing and transportation will be important areas of focusin 2015 for finding new value and cost savings. References [1] Forrest Burnson, "Effect Of Inventory Management Technology On Employee Theft Prevention IndustryView | 2014," SoftwareAdvice, December 18, 2014,[2] Kathy Grannis, "National Retail Security Survey: Retail Shrinkage Totaled $34.5 Billion In 2011," National Retail Federation,June 22, 2012,[3] Darren Woolard, "Challenges To The World Of Warehouse Services," DMG-Freight, January 6, 2015, [1] [2] [3] Purchasing made ridiculously easy Software Advice
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