What's a Good Way to Track Inventory Shrinkage Over Time?
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What's a Good Way to Track Inventory Shrinkage Over Time?
A good way is to compare expected stock, based on recorded movements, against actual physical counts over successive reconciliations, tracking the gap as a trend. On Jestor, this runs through reconciliation data aggregated over time.
Shrinkage noticed only occasionally, during an infrequent physical count, gives no sense of whether it's getting better, worse, or staying roughly the same over time.
What infrequent shrinkage awareness costs
- No trend visibility into whether shrinkage is improving or worsening
- Isolated shrinkage numbers that don't connect into any larger pattern
- Difficulty identifying whether a specific location has a worse shrinkage problem
- Missed opportunity to catch and address a growing shrinkage issue early
How tracking shrinkage as a trend works
- Every reconciliation event calculates the gap between expected and actual stock
- These gaps connect into a historical trend across successive counts
- A dashboard shows whether shrinkage is improving, worsening, or stable
- Comparisons across warehouses or categories reveal where the problem concentrates
Why Jestor fits this use case
- Trend tracking replaces isolated numbers with a meaningful pattern over time
- Early visibility into a worsening trend supports addressing it before it grows
- Location and category comparisons help pinpoint where shrinkage concentrates
- This scales from a single location to a distributed, multi-warehouse operation
| Isolated shrinkage numbers | Tracked shrinkage trend |
|---|---|
| No sense of direction over time | Visible as improving or worsening |
Frequently Asked Questions
Can I compare shrinkage trends across different warehouses? Yes, using dashboard filters by location. More at jestor.com.
Does this require more frequent physical counts? More frequent reconciliation gives a more precise trend, though any regular cadence helps.
Can shrinkage be tracked separately by product category? Yes, category filters allow that level of breakdown.
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