Retail Loss and Vendor Fraud?
Vendors who are the very people that supply you with merchandise have stolen from retailers. I am not saying that every vendor will do this. Most vendors are working hard trying to earn and keep your business. However, vendor fraud results in approximately 5% of retail loss. How does this happen? They are a business. They may have employees that are stealing and this could affect you. Say you are supposed to get 50 items in a carton. But an employee thief at the vendor’s facility only packs 48 to a carton in your order. They take the stolen items out and put it in the trash then come back later and get them out of the dumpster. Sound crazy? We have done many of these types of retail loss theft investigations. If your employee is only counting in the cartons and not counting the contents you are putting money in that “piggy bank” of the thief at your expense. There have been some cases where the vendor them self will short an order. Don’t catch it and they get paid in full at your expense. I have caught several very large, well known businesses doing this. How do you stop this? Receiving must fully piece count every shipment. A supervisor should then do a spot audit of approximately 10% of the order. Contact us today for more information
in Vendor Fraud