Business Analytics

inventory2

Inventory Optimization

Reduce the High Cost of Inventory Loss

Poorly written inventory policies and procedures, insufficient contols and failure to limit authority are just some of the bad business practices that lead to inventory losses and theft. The cost to business is staggering.

In retail alone, the cost of shrinkage due to employee theft totals more than $15 billion a year and accounts for nearly 44 percent of total losses. In comparison, shoplifting accounts for nearly 33 percent of total losses. Collusion is responsible for 18.7 percent of losses. Retailers lost another $4.8 billion to administrative error and $2 billion to vendor fraud. Cargo theft is also on the rise, accounting for more than $10 billion in losses annually.

Don't accept inventory loss as part of the cost of doing business. A physical inventory once a year may satisfy an auditor or controller, but it is not likely to deter thieves from stealing valuable materials or finished goods. Electronic inventories for airlines seats, hotel rooms, or car rentals are susceptible as well.

Clark Consulting business analytics leverages existing data sources to help uncover:

  • Previously undetectable inventory spoilage and loss
  • Costly and unproductive distribution and supply chain channels
  • Inefficient business practices
  • Unproductive manpower utilization
  • New opportunities to control and protect inventory

Learn how your company can go from inventory loss to inventory optimization. Improve profitability. Start identifying and preventing loss of physical and electronic inventory.