As we stressed in the article mentioned above, employees must see all inventory shrinkage as an expense that reduces the amount of money available to pay wages and benefits. It takes money out of their pockets. There are, of course, some people who are truly thieves. And sometimes a distributor inadvertently hires one. Thieves usually don't see their long-term security tied to the success of the firm that employs them.
Some distributors install security cameras and other theft-deterrent devices.
True, they may be a deterrent to some theft, but employees who are also thieves usually put considerable thought and effort into getting around these systems and continue to steal. These feelings often discourage good and loyal employees from giving their all for the company. A better way to discourage theft is for management to create an atmosphere that encourages effective inventory management. Here are several policies that will help to solve the inventory shrinkage problems faced by many distributors. Limit access to the warehouse.