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.