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Shrinkage

Stock lost between buying and selling: theft, damage, expiry, and mistakes in counting or recording.

Shrinkage is the gap between the stock your records say you have and what is really on the shelf. It comes from theft, breakage, products that expire, units given away or used, and admin errors such as a sale never recorded or a delivery counted twice.

It's usually shown as a percentage of sales. To bring it down you need to know where it comes from, so count regularly and record every loss with its reason. In Binhop a decrease or a count can say why (damaged, lost, expired, own use), and the reports show stock lost by cause.

Related terms

Cycle countDead stockAll terms

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