Vendor Theft and Error

Abstract

Retail losses are the result of errors, omissions and intentional deviant acts. Further, losses start in the supply chain (manufacturer, wholesaler, shipping, etc.). Merchandise vendor theft and error can cause retailers hundreds of thousands of dollars in lost revenues. Retailers usually purchase their merchandise from specific vendors. These vendors then ship merchandise directly (or through a distributor) to the retailer. In the case of grocery operations for example, vendors may deliver large quantities of products to a store through a delivery person, who also stocks and displays these items. Vendors, like all businesses, are prone to error and, in some instances, dishonesty. This chapter describes some of the risks vendor theft and error pose, and recommends preventive measures that address them.