Tackling shrinkage in the fast moving consumer goods supply chain: developing a methodology

Abstract

Shrinkage for retailers and suppliers of Fast Moving Consumer Goods (FMCG) continues to be a significant problem, one that seems resilient to ameliorative actions. In an effort to respond to the apparent failure of existing approaches to loss prevention, this chapter introduces a ‘process-orientated’ approach to tackling shrinkage. The approach consists of a prescriptive series of seven steps that form a stock loss reduction ‘road map’, together with associated techniques and tools for undertaking each step.