- A sizeable portion of “big box” retail chains (24%) still do not use inventory management software, which leaves them open to inventory shrinkage. Using this software is beneficial, as it allows companies to conduct cycle counts and avoid manually updating inventory levels. While a computer program won’t stop employee theft, it does give businesses the resources to ensure their inventory is properly accounted for on a regular basis. In turn, bad behavior will not be able to fly under the radar as easily.
- No matter the size of your company, you should take the time to research inventory management solutions and potentially invest in one since 22% of employees at companies without inventory management software openly admitted to stealing products. With only a portion of “mom and pop” stores and regional chains leveraging inventory management software (37% and 53% respectively, see chart below) there are numerous companies leaving themselves exposed to the threat of employee theft – a problem that costs US companies more than $15 billion annually.
According to Forrest Burnson, the inventory management researcher at Software Advice that conducted the study, this is a problem that needs immediate attention:
“Regardless of what kind of business you have, it's important to protect your products. From small businesses to larger ones, each company can benefit from implementing an inventory management system. With at least 60% of respondents from each type of store noting that employee theft is a problem of some degree, business owners need to take the time to address this matter. Using software is a great way to better secure your business and ensure your bottom line doesn’t suffer”
To read the full report, click here.
