The phenomenon of fraud (shrinkage) in the logistics system: definition, causes and methods of prevention

The phenomenon of fraud in the logistics system is a very common phenomenon and is a huge challenge for modern businesses, which can cause considerable economic damage, especially to retailers. Shrinkage is the loss of inventory that can be attributed to factors such as employee theft, store theft, administrative error, supplier fraud, cash damage and cashier error, etc. The shrinkage phenomenon also includes returned products that were delivered incorrectly, or withdrawn because the expiration date has expired, and as a result economic damage is caused to companies. In accounting terms, shrinkage is the difference between the inventory recorded in a company's balance sheet and its actual inventory. In a broad sense, shrinkage also includes the costs of activities and equipment used to prevent possible fraud (video cameras, anti-theft systems, etc.).