Preventing Inventory Losses at Warehouses & Retail Outlets

Preventing Inventory Losses at Warehouses & Retail Outlets

Inventory management is a critical component of retail and warehouse operations, yet many businesses struggle with losses, stock discrepancies, and outdated items. Whether you're managing a single outlet or multiple warehouses, ensuring accurate inventory tracking is key to minimizing losses and maximizing profitability. Let’s address some frequently asked questions to understand how a customized software solution, like a Perpetual Inventory Control System (PICS), can prevent these issues.

Do You Have a Large Number of Inventory Items?

If your business deals with hundreds or thousands of products across multiple outlets or warehouses, manual tracking is inefficient and prone to errors. Whether these items are barcoded or manually tagged, keeping an accurate record of stock levels is a challenge. Discrepancies can arise from human error, theft, mismanagement, or even perishable items spoiling before they can be sold.

Without an efficient system, losses can accumulate quickly, impacting your bottom line. This is where a Perpetual Inventory Control system like PICS becomes essential.

Does Your Business Experience Frequent Inventory Losses?

Many businesses suffer from inventory losses due to theft, spoilage, or administrative errors. A lack of control over your stock means that these losses go unnoticed until it’s too late. For example, one supermarket chain discovered they were losing over 2 billion rupees annually in stock losses—roughly 3% of their total sales. After implementing PICS, they cut those losses by 50%.

A robust system like PICS provides early detection of discrepancies, enabling immediate action to prevent further loss. It helps businesses conduct frequent physical stock audits, detect theft, and ensure accuracy in inventory levels.

How Does PICS Work?

The Perpetual Inventory Control System (PICS) simplifies physical stock verification by automating the process. Designate a team or individual to scan inventory items on shelves and in storage using barcodes. The scanned data is then transmitted to the head office server, where it's automatically compared to the existing inventory balances in your ERP system. Any  discrepancies in inventory is  immediately escalated to the relevant authority for further investigation, with the option to escalate serious issues directly to top management.

Regular checks—whether daily or weekly—can be done quickly, even outside regular business hours. And for businesses that operate 24/7, the system offers flexible solutions that won’t disrupt operations.

Real-World Example: How PICS Saved a Supermarket Chain 1 Billion Rupees

To illustrate the impact, consider the example of a supermarket chain that was losing 2 billion rupees annually in inventory losses. After implementing PICS, they reduced those losses by 1 billion rupees. While half of the loss was due to spoilage of perishable goods, such as butter and yogurt, the other half was from fraudulent transactions. Employees were letting friends and family walk away with high-value goods while ringing up lower-cost items.

By using PICS, the supermarket was able to track discrepancies and reduce fraudulent losses, saving the business millions each year.

How Can PICS Help Your Business?

If your business is struggling with frequent stock-outs, obsolete items, or inventory discrepancies across multiple locations, a Perpetual Inventory Control System can be the solution to regain control. By automating stock reconciliation and providing real-time insights, PICS can safeguard your business from costly losses and ensure smooth, efficient operations.

To learn more about how PICS can help your business, give us a call at 0777899899 or email us at crm@datamation.lk. We’d be happy to discuss a tailored solution that meets your unique needs.