Supply chain managers use this term to quantify goods that go missing due to theft, damage, administrative errors, or spoilage. It represents a direct hit to the bottom line and is tracked meticulously in warehouses and distribution centers. High rates of missing product often trigger internal audits and tighter security protocols at loading docks.
Heard on the job
We need to audit the high-value electronics cage because our shrinkage on those SKUs is up three percent this quarter.
Insider tip
A sudden spike in shrinkage often points to internal theft rather than external shoplifting.
Also heard as
- shrink