PROMOTIONAL RESEARCH
When it comes to tackling loss prevention, it helps to reframe it as profit protection. Zebra Technologies’ Mike Finch explains how doing so can lead to 99% stock-counting accuracy
For any UK retailer, having accurate and efficient inventory management across all stores is critical to loss prevention, and, by default, profit protection.
Reducing surpluses and tracking availability in real time also aids fast replenishment. By following these six steps, this is all easily achievable whether you have 100 stores or 1,000.
Step one: Ditch the third-party
When carrying out their annual audit to satisfy legal requirements, many retailers rely on third-party counters, but these can be very unreliable. Their schedule may not fit the closed times of stores, counting for a few days can be hugely disruptive to operations and the expenditure can end up being their fee plus loss of trade.
Step two: Do it yourself
You can achieve a 25%-50% saving on this task using your retail colleagues. They have internal knowledge of products, know the store layout and can more easily, quickly and accurately spot any discrepancies. This boosts efficiency and can be done across multiple stores at the same time – allowing you to count when and how you want.
Step three: Create accurate and robust stock files
Integrating new technology into your audit means it can be done at any time, not just yearly. Third-party counters usually do a simple check and add-up before sending a spreadsheet of inventory with minimal insights, amounting to additional workload internally. However, using mobile devices to both scan shelf labels and input data creates a real-time online portal for instant stock visibility.
Step four: Improve customer satisfaction
Real-time inventory management delivers a boost in customer service, as it means when an order is placed online you have certainty that the product is available for immediate fulfillment, reducing shoppers’ disappointment. Automatic replenishment can also be enacted to reorder items as soon as they run low, while Zebra Inventory Visibility reporting data offers wider commercial value, by ensuring you reduce your stock turn and improve your shrinkage.
Step five: Keep a close eye on the data
Regularly auditing stock by leveraging the best available technology means your protection team can quickly recognise a single loss or big gap on a shelf that doesn’t seem right. Portal data offers actionable insights to simplify the process, recognising discrepancies or root causes such as fraud and theft much faster.
Step six: Celebrate greater accuracy and confidence
Third-party counting often only provides varying degrees of accuracy, but individual store counts using colleagues, and the latest counting technology can be as much as 99% accurate. Trusting staff and using third-party counter savings to offer overtime boosts morale. Improving data accessibility ensures better c-suite decisions.
To find out more, have a look at our case study with a leading UK retailer.
Mike Finch is operations director for retail solutions at Zebra Technologies
