Shrinkage...the difference between actual inventory on hand and what it should be according to purchase and sales records. Some of the factors contributing to inventory shrinkage include employee theft, shoplifting, and paperwork error.
Security experts estimate that in-house theft is responsible for an overwhelming 50 percent of shrinkage. It is crucial for companies to be able to monitor where their assets are in today’s business environment, for insurance and auditing purposes.
Inventory labels, also called asset labels or tags, not only help in reducing employee fraud, but also employee carelessness. The labels are placed on valuable assets such as laptops and cell phones and assist in the identification and return of these “moveable assets” when they are misplaced by employees. Labels play a large role in helping a business keep track of their physical assets, as well as returnable assets such as pallets and containers. Inventory labels are highly visible for easy organization, allowing a business to track and manage their inventory more efficiently.
From normal office conditions to extreme warehouse temperatures, different label strengths are offered for varying environmental conditions and circumstances. The labels are typically printed with the company’s name, a barcode, or a serial number. Metal, ceramic, polyester, or stainless steel inventory labels are very specialized, customized to individual needs. These labels are also offered with tamper-evident features, resulting in the destruction of the label or “void” notification when removed.
Inventory Labels designed for maximum asset management may also qualify companies for tax reductions and insurance premium discounts, because of the effective inventory control they provide.