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Business – Stock Loss

Analysis of the reasons for stock loss

Root cause analysis fishbone template on loss in inventory

The record of each item of materials in stock must tally with the actual stock in the inventory. Profit or revenue of any trade depends on its inventory maintenance as well as its sales metrics.  It is necessary to find out if the actual stock in the store agrees with the computer information or clerical record . A proper loss reduction plan is necessary for retailers or any company that deals with products that demands the surveillance of inventory control. A thorough investigation of the causes would definitely help the traders to put in place inventory control for more profit.

Stock Loss
Physical damage

  •         Droppage
  •         Squashed by handling equipment
  •         Hit by moving equipment
  •         Rain/ water damage
  •         Faulty packaging

Process issues

  •         Improper transit management
  •         Inadequate information management
  •         Error-prone order taking/ delivery system
  •         Storage/ stowage issues

Staff issues

  •         Over-worked staff
  •         High attrition
  •         Lack of skills/ training


  •         Deliberate invoicing errors
  •         Pilferage
  •         Shoplifting

This fishbone template describes the relevant causes for stock loss. It illustrates an organized root cause analysis for the problem. We have tried to provide some optimized strategies for incident analysis. The cause arrangements are well structured, hierarchical, and simple. It is a good reference for future incident/ root cause analysis in any specific or general situation.

Who should use the Stock Loss template?

  • This template is informative and useful for anyone who wants to know the reasons for loss in inventory in a business. It lets you explore the different reasons for stock loss. One can make loss reduction plan if the reasons are known in advance more efficiently. We welcome everyone to work with our templates.

Why use this template?

  • The rules and conventions adopted during the analysis of factors that affect inventory are clear and easy to understand.
  • Shares knowledge on incident analysis.
  • Create and change your template or use this for your own problem-solving.

Curated from community experience and public sources

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