inventory shrinkage

inventory shrinkage Inventory shrinkage refers to the loss of inventory due to various factors such as theft, damage, miscounting, or administrative errors. It is a common issue faced by businesses, particularly in retail and e-commerce, as it impacts profitability and stock accuracy. To reduce inventory shrinkage, businesses often implement better inventory management practices, conduct regular audits, and invest in security measures like surveillance systems and theft prevention strategies. Tracking shrinkage is crucial for maintaining an efficient and cost-effective supply chain, ensuring that inventory levels remain accurate.