What is a key factor in preventing inventory shrinkage?

Regular physical checks and employee training play a crucial role in preventing inventory shrinkage. Conducting frequent physical inventory audits allows a business to identify discrepancies between recorded and actual stock levels. This helps in spotting issues such as theft, loss, or misplacement of inventory early on, enabling the business to address these problems quickly.

Additionally, training employees on proper inventory handling and security protocols fosters a culture of accountability and awareness. Well-trained staff are more likely to recognize and report suspicious activities or operational inefficiencies that could lead to inventory loss. Effective training can also reduce human errors during inventory management processes, further minimizing shrinkage.

In contrast, frequent promotions might generate higher sales but do not directly address the root causes of inventory loss. Limiting stock to best sellers may improve turnover but doesn't tackle the problem of theft or mismanagement. Reducing the number of staff members could lead to oversight and increased opportunity for shrinkage due to inadequate monitoring of inventory. Therefore, regular checks and employee training present a more comprehensive strategy for maintaining accurate inventory levels and preventing shrinkage.