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

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.