10 Ways to Reduce Inventory Shrinkage

Shrinkage — stock that disappears between receiving and selling — costs East African retailers an average of 3% of revenue. Here's how to get it under 1%.

1. Count cycle, don't count annually

A big annual stock-take is too late. Pick 10% of your catalog per week. Rotate. You'll spot discrepancies within days, not months.

2. Scan at receipt

Every delivery goes through a barcode scanner before stock is accepted. No paper matching.

3. Two-person high-value receipt

Any delivery worth over TZS 500,000 gets signed off by two people. Friction deters collusion.

4. Till variance reports daily

Reconcile cash + mobile money vs. POS sales at close every shift. Not weekly.

5. CCTV over till + stockroom

Not for prosecution — for deterrence. Visible cameras cut shrinkage by ~30%.

6. Restrict stockroom access

Not everyone needs keys. Auditable door access is cheap now.

7. Enforce uniform-no-pockets policy

Sounds petty. Works.

8. Refunds require manager code

One-click refunds from a cashier account are a shrinkage vector. Always.

9. Spot checks on high-theft SKUs

Alcohol, phone accessories, cosmetics. Weekly count, not quarterly.

10. Make the numbers visible

Publish the weekly shrinkage figure in the back office. When staff see it, it drops.

The compounding effect

Do five of these ten and shrinkage typically halves in a quarter. Do all ten and you're below 1% — retail-industry best-in-class.