How to Reduce Theft and Drive Growth for your business by mastering the art of inventory management

Inventory Management is the process of ordering, storing and selling a company's stock; from raw materials to finished products.

Inventory management gives business owners control of the stock management process; by understanding the number of products that need to be stocked and the condition of the products, business owners are able to make more informed decisions capable of driving business growth.

Example of Employee Fraud in an Organization

Tina owns a Bakery in Oyo State Nigeria where she sells confectioneries. She has to leave the store at 1PM everyday to check up on other things leaving Fadiya alone in the store. Once alone, Fadiya operates as if she owns the business whilst falsifying the sales records.

As Tina's business involves edible products, all items were required to be sold off the same day or disposed of. To achieve this, Fadiya was required to sell the remaining items at 60% less from 7PM before the store closes at 9PM. Fadiya was able to sell off almost all products before 7PM but reported that she had more sales from 7PM. On average, the daily revenue from the store was N385,000 but Fadiya remitted only 325,000. Tina had nothing in place to keep track of all her products and supplies, customers were not issued receipts either.

She had nothing, just the word of Fadiya. As a result, Fadiya lost 16% in daily sales.