5 Sources of Product Loss & Prevention Tips for Wholesalers

Product: Fires, floods and other natural disasters can take out your inventory in a matter of minutes. To reduce the risk make sure you have a fire prevention strategy in place, an emergency response plan and strong housekeeping and maintenance practices.

Theft: Warehouses are at a high risk for burglary and theft. You can reduce the risk with updated electronic security & surveillance, strict inventory controls, controlled access to the building, and separate delivery & dispatch locations.

Poor inventory controls: Without solid inventory controls in place you might not even be aware of what has gone missing or what has spoiled.  Inventory controls should track specific products going in/out of your facility, product shelf life, and changes in packaging or branding that might change a products value.

Spoilage: This is a significant source of loss for many warehouses. Spoilage can occur due to poor inventory control, refrigeration failure and security or warning system failures. You can reduce your risk by having contingency plans in place for equipment failure, good emergency planning, and frequent testing of your equipment.

Supply Chain issues: Product loss is an issue at each part in your supply chain. Breakdown of delivery trucks is one consideration but you also might experience losses if your supplier experiences an interruption their business. You can protect your company by having contingency plans for your supply and deliveries, regular vehicle maintenance, and avoiding reliance on just one or two suppliers.