2016-12-09 00:00:00Profit & LossEnglishPrevent shrinkage through superior inventory management. Discover how a well-designed shipment distribution protocol can help prevent...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/employee-prepares-shipments-for-distribution.jpgMinimize Shrinkage by Assigning Protocol for Shipment Distribution

Minimize Shrinkage by Assigning Protocol for Shipment Distribution

0 min read

Inventory shrinkage is the percentage of physical inventory versus suggested inventory. By designing a protocol for receiving shipments and distributing inventory, shrinkage can be reduced. Designate only specific, higher-level employees to open and assign new shipments to where they belong. These employees should be given the responsibility of cross-checking the packing list, order sheet, and actual items received. This allows for the correction of discrepancies before there becomes a problem with missing inventory.

As the business owner, you should also check that any invoices, signed packing lists, purchase orders, and shipping receipts are correct before they are filed. Organize this paperwork through physical copies in a file cabinet, or scan in the forms to a computer and save a backup copy.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

How Small Businesses Can Minimize Shrinkage

Shrinkage is a common issue that all inventory-holding businesses face, small or…

Read more

Comprehensive Guide to Hidden Expenses When Starting a Small Business

Starting a business costs money, no matter what the size. The obvious…

Read more

Things to Consider When You're Fighting Petty Theft in Your Convenience Store

Of all the hurdles you face in running a successful convenience store,…

Read more