Reduce Inventory Shrinkage
A previous article outlined the horrific costs associated with Inventory Shrinkage in the retail industry - approximately 4% of the total annual inventory costs. A good POS (Point of Sale) system can help cut this in half by helping to eliminate two of the major causes of Inventory Shrinkage - internal theft and "messed up paperwork". The last article dealt with the "carrots" you can implement with a good Point of Sale system to reduce the internal theft component of Inventory Shrinkage. It covered things like improved communications, profit sharing, employee discounts, and the tracking and offering of sales commissions, SPIF's, etc. In this article, I'm going to show how a Point of Sale system can be used to reduce internal theft using the "stick" of increased security measures. A following article will discuss how to improve "messed up paperwork".
A good Point of Sale system should balance between carrots and sticks, but sometimes the only way to reach some employees is through a "stick" of an effective security program and a straightforward policy of prosecuting any employee caught stealing. Here are some sticks that a good POS can give you.