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Casual Articles - Shrinkage Control
The field of headhunting is a very challenging one when it comes to finding and recruiting top sales and marketing talent…whether they be executive, mid-level, sales management, marketing management or front line sales and marketing producers. Searching for these types of top candidates is no easy task.If your company is trying to find the best, make sure to bring in an experienced sales and marketing recruiter who can help you. They are worth their weight in gold, and their fees are easily justified. By outsourcing to a search firm, you can reduce your hiring time, improve the process and avoid the risk of mis-hires.I see lots of companies that have made mis-hires over the years, and it’s not because they haven’t done their best to find good candidates. The problem is that their best is just not good enough. Often times, Presidents or Chief Operating Officers or
* Recording a false cash refund and pocketing the cash.
* Taking merchandise without paying for it.
* Extending unauthorized discounts or credit card refunds for friends.
SHOPLIFTING
Shoplifting can occur at any time. Anyone can be a shoplifter; a regular customer who never intended to steal but gave in to temptation and opportunity, or a seasoned professional.
OVER
Most business owners only sell one business in their lifetime. The results of that sale can have a major impact on the financial future of the family. For most business sales we recommend that the seller engage a professional specializing in business sales to assist. There are two broad categories of professionals that engage in business sales business brokers and merger and acquisition advisors.What should the seller be looking for? This article will discuss the type of services offered by both groups and help the business seller decide which professional to use.The first criteria is type of business. Generally, business brokers specialize in "Main Street" types of businesses such as dry cleaners, gas stations, restaurants, and convenience stores. M&A advisors specialize in more B2B types of businesses such as manufacturers, distributors, information technology firm
WHAT IS SHRINKAGE?
The difference between the perpetual book inventory and the physical inventory count is called shrinkage. The book inventory is a record of what ought to be on hand in view of what has been received, what has been sold and price changes. Physical inventory count is the volume and value of all the goods actually on hand.
CAUSES OF SHRINKAGE
Shortages can and will occur at every point where merchandise changes hands or paperwork is created or processed. Proper systems with built-in controls must be put in place to eliminate or reduce these shortages. While there is not enough room to list all the specific causes of shrinkage, we will give several examples of each of the three general causes: paperwork errors, internal theft and shoplifting.
PAPERWORK ERRORS
Paperwork errors can happen almost anywhere in the merchandising cycle. For example:
* Marking goods at a price lower than the retail price recorded on the receiving record.
* Failure to record all markdowns.
* Miscounting physical inventory.
* Clerical errors causing the book inventory to be higher than it should be.
* Timing is of particular importance. When comparing the actual physical inventory count to the perpetual book inventory, care must be taken to ensure that every invoice representing goods that have been received before the physical inventory count is included in the calculation of book inventory.
INTERNAL THEFT
While internal theft can be anything from taking merchandise to taking cash or store supplies, we will focus on those instances of internal theft that pertain to merchandise. Some examples are:
* Writing up a cash sales slip for merchandise but destroying the ticket after the customer leaves and pocketing the cash.
* Recording a false cash refund and pocketing the cash.
* Taking merchandise without paying for it.
* Extending unauthorized discounts or credit card refunds for friends.
SHOPLIFTING
Shoplifting can occur at any time. Anyone can be a shoplifter; a regular customer who never intended to steal but gave in to temptation and opportunity, or a seasoned professional.
OVERA
When should a company consider change management? Most would say when the management is unable to perform up to the optimum level that is required to maintain shareholders' equity and quarterly profits. But when it comes to leadership it is much more than that and to that point let me discuss one of the major times it is important to consider a change management situation for the upper executive management.Often when a company is going to lay off many employees, it may be necessary to bring in a new set of corporate executives. Once the layoffs are completed many employees may feel that they no longer trust the Company or the leadership and that in the future they may lose their jobs as well. To alleviate some of this concern it may be necessary to once again change the management and that way all the layoffs that occurred can be blamed on the previous management.
CAUSES OF SHRINKAGE
Shortages can and will occur at every point where merchandise changes hands or paperwork is created or processed. Proper systems with built-in controls must be put in place to eliminate or reduce these shortages. While there is not enough room to list all the specific causes of shrinkage, we will give several examples of each of the three general causes: paperwork errors, internal theft and shoplifting.
PAPERWORK ERRORS
Paperwork errors can happen almost anywhere in the merchandising cycle. For example:
* Marking goods at a price lower than the retail price recorded on the receiving record.
* Failure to record all markdowns.
* Miscounting physical inventory.
* Clerical errors causing the book inventory to be higher than it should be.
* Timing is of particular importance. When comparing the actual physical inventory count to the perpetual book inventory, care must be taken to ensure that every invoice representing goods that have been received before the physical inventory count is included in the calculation of book inventory.
INTERNAL THEFT
While internal theft can be anything from taking merchandise to taking cash or store supplies, we will focus on those instances of internal theft that pertain to merchandise. Some examples are:
* Writing up a cash sales slip for merchandise but destroying the ticket after the customer leaves and pocketing the cash.
* Recording a false cash refund and pocketing the cash.
* Taking merchandise without paying for it.
* Extending unauthorized discounts or credit card refunds for friends.
SHOPLIFTING
Shoplifting can occur at any time. Anyone can be a shoplifter; a regular customer who never intended to steal but gave in to temptation and opportunity, or a seasoned professional.
OVER
Managing transition is never easy. The loss of familiarity with the new processes, necessity and ability to learn new things and new ways of working is often very painful. The people and organizations accustomed to a certain way of work will take time to change.While change is essential for progress, what are the elements to focus in preparing for the change management initiative?VisionHelen Keller said “nothing is more tragic than someone who has sight, but no vision”. Vision inspires all change and development. Vision whips up passion for achievement. Vision is the outward projection of the mankind’s core values and dreams of greatness. Nothing can inspire a person more than vision of excellence and his own contribution to such excellence. The power of vision is the major tool in the change managers’ arsenal for creating quick acceptance and effe
PAPERWORK ERRORS
Paperwork errors can happen almost anywhere in the merchandising cycle. For example:
* Marking goods at a price lower than the retail price recorded on the receiving record.
* Failure to record all markdowns.
* Miscounting physical inventory.
* Clerical errors causing the book inventory to be higher than it should be.
* Timing is of particular importance. When comparing the actual physical inventory count to the perpetual book inventory, care must be taken to ensure that every invoice representing goods that have been received before the physical inventory count is included in the calculation of book inventory.
INTERNAL THEFT
While internal theft can be anything from taking merchandise to taking cash or store supplies, we will focus on those instances of internal theft that pertain to merchandise. Some examples are:
* Writing up a cash sales slip for merchandise but destroying the ticket after the customer leaves and pocketing the cash.
* Recording a false cash refund and pocketing the cash.
* Taking merchandise without paying for it.
* Extending unauthorized discounts or credit card refunds for friends.
SHOPLIFTING
Shoplifting can occur at any time. Anyone can be a shoplifter; a regular customer who never intended to steal but gave in to temptation and opportunity, or a seasoned professional.
OVER
The first thing an employer will notice is your email address. When an employer receives your resume via the web or an email, your email address will most likely be at the top of that document. Now, be very cautious when selecting an email to use. Try to reframe from using slang term email addresses or email addresses that may offend other people aside yourself. Emails like nobodylikeme@thisisanexample.com or icantcomplain@thisisanexample.com may distance an employer from you. With these sorts of email addresses, your resume may not ever be reviewed.I recommend using emails that represent your name like, john.smith@thisisanexample.com or jsmith@thisisanexample.com. This will give the employer an idea that you represent professionalism. I have seen too many email addresses that display car names or favorite actors, these email addresses are in better taste and use with family
INTERNAL THEFT
While internal theft can be anything from taking merchandise to taking cash or store supplies, we will focus on those instances of internal theft that pertain to merchandise. Some examples are:
* Writing up a cash sales slip for merchandise but destroying the ticket after the customer leaves and pocketing the cash.
* Recording a false cash refund and pocketing the cash.
* Taking merchandise without paying for it.
* Extending unauthorized discounts or credit card refunds for friends.
SHOPLIFTING
Shoplifting can occur at any time. Anyone can be a shoplifter; a regular customer who never intended to steal but gave in to temptation and opportunity, or a seasoned professional.
OVER
No job lasts forever and for some, the sour taste and deflated feeling of getting fired may occur once or even more than once in a lifetime. This event may or may not have been of his or her doing. Dealing with a job termination doesn't have to be your fault; you may have exhibited a personality clash with your supervisor, manager, or head employer. A merger or downsizing might have been the cause of your job loss. Perhaps, you never found a niche within the business and weren't performing to company standards. Sometimes, you simply made a mistake that was large enough to cause the termination of your job. Whatever the act or circumstances, there are plenty of things to consider once you lose your job.Dealing With the Loss of Your JobThe way you have conducted your affairs prior to your job termination will make a heap of difference. For some individuals, a reasonable
* Recording a false cash refund and pocketing the cash.
* Taking merchandise without paying for it.
* Extending unauthorized discounts or credit card refunds for friends.
SHOPLIFTING
Shoplifting can occur at any time. Anyone can be a shoplifter; a regular customer who never intended to steal but gave in to temptation and opportunity, or a seasoned professional.
OVERAGES
Although shortages are normally expected, it is not logical to have counted in the physical inventory more than the book figure indicates. Goods are stolen, but not donated to the store. Therefore, overages are due largely to errors in record keeping, although they may be due to an employee trying to cover up the theft of merchandise. Some examples are:
* Recording markdowns without actually reducing prices on price tickets.
* Overstating the physical inventory.
* Including in the physical inventory count merchandise that has not yet been recorded in the book inventory.
HOW TO REDUCE SHRINKAGE
There are several factors that affect the reduction of shrinkage.
* Whether or not you have a stated shrinkage goal to work towards.
* Top management's commitment to reduce shrinkage. If top management gives shrinkage control top priority, it will invariably be reduced.
* Whether or not proper procedures that contain built-in internal controls have been set up for each transaction or event in the flow of merchandise from the time it is ordered until it is purchased by your customer. And whether or not these procedures are being followed.
* The record keeping system being used. The Retail Inventory Method can help keep losses down. The fact is that shrinkage declines when it is measured, and the Retail Inventory Method generally provides the best measurement of shrinkage.
PREVENTION OF PAPERWORK ERRORS
Paperwork errors can be controlled by use of a good, well-documented system containing built-in checks and balances. This is an area in which we have helped many retailers by conducting internal security checks and developing written procedure manuals. But a good system is not enough. All employees (receiving clerk, salespeople, buyers, office personnel) must be properly trained. They must be told the importance of following the proper procedures. And, of course, management must f
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