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Tackling Shrinkage in the Fast Moving Consumer Goods Supply Chain: Developing a Methodology

NCJ Number
200366
Journal
Security Journal Volume: 16 Issue: 2 Dated: 2003 Pages: 61-75
Author(s)
Adrian Beck; Charlotte Bilby; Paul Chapman
Date Published
2003
Length
15 pages
Annotation
This article discusses a process-oriented approach to addressing the problem of retail shrinkage.
Abstract
Addressing economic losses faced by both retailers and suppliers due to merchandise shrinkage, the authors present a review of literature discussing the issue of merchandise shrinkage. Following a discussion of holistic, systematic, and collaborative stock loss reduction principles, the authors detail ways to develop strategic plans for investigating, addressing, and preventing merchandise shrinkage. Applying the principles of being holistic and being systematic to the issue of stock loss, the authors argue that a process-oriented approach to diagnosing stock loss is the most effective technique for mapping and measuring retail shrinkage. The authors tested the mapping and measuring process for retail shrinkage using supply chains from Gillette in the United Kingdom to customers in both Sweden and Hungary. The authors found that the stock loss reduction roadmap is an effective attempt at organizing supply data in order to develop strategic approaches to combat the problem of retail shrinkage, a growing problem that needs to be addressed by companies throughout the United Kingdom. Figures, notes

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