TO STOP LOSS IN ITS TRACKS YOU NEED TIMELY AND
ACCURATE INFORMATION
SHRINK! The dreaded topic no one wants to talk about. We all have acceptable losses in business, but where are you drawing the line?
We all know ‘Shrinkage’ is a silent threat that eats away at the profitability of businesses across various industries, including retail, healthcare, manufacturing, and food and beverage.
Do you know how much you are labeling as “acceptable loss”?
What if you could reclaim even a fraction of that? What could that mean for your business?
Whether you’ve lost inventory, experienced broken or stolen goods, or simply misplaced items these losses that can significantly impact your bottom line. ARTIC by InTu Mobility provides a powerful solution to minimize shrinkage by delivering real-time, accurate data and seamless integration with existing inventory systems. But how?
Let’s dig into the details of shrink and its costs in a few key industries that we see on a daily basis with our clients.
Understanding Shrinkage Across Industries
Retail
In the retail sector, shrinkage often results from theft, mismanagement of inventory, and administrative errors. Accurate information is critical to prevent these losses. By employing ARTIC, retailers can achieve real-time tracking of their products, which helps pinpoint where and when losses occur—whether it’s due to employee theft or misplacement during shipping.
Here’s a quick rundown of the key statistics on retail shrinkage:
- Average Shrinkage Rate: In the U.S., the average inventory shrinkage rate was 1.6% in 2022, slightly higher than the previous years, which hovered around 1.4% to 1.44%.
- Financial Impact: Retail shrinkage cost U.S. retailers $94.5 billion in 2021.
- Major Retailers: Target experienced a shrinkage of $700 million in 2022, with a projected $500 million in 2023.
- Causes: Shrinkage is primarily due to theft (both internal and external), process errors, and damage.
- Trends: Organized retail crime and increased e-commerce have introduced new challenges in loss prevention.
What could your retail operation do with that savings?
ARTIC can plug the gaps in your retail operation and give you real time information about where your product is, who moved it, and give you critical insights into your blind spots.
Healthcare
Healthcare facilities face unique challenges with shrinkage, particularly concerning high-value equipment and supplies. ARTIC offers real-time asset tracking, ensuring that expensive medical equipment and critical supplies are always accounted for. This not only prevents loss but also enhances operational efficiency by reducing the time spent searching for misplaced items.
Home medical machines such as oxygen concentrators, CPAP machines, and mobility aids are often reported lost or stolen. Industry estimates suggest that approximately 10-15% of medical devices rented out for home use are never returned or are reported missing due to theft or misplacement. This figure highlights the substantial impact on rental companies and healthcare providers.
Key Statistics
- Loss and Theft: It is estimated that 7-10% of home medical equipment is lost annually due to theft or unreturned rentals.
- Misplacement: Up to 5% of devices are misplaced due to inadequate tracking and management systems.
- Financial Impact: The annual cost of lost or stolen rental medical equipment can reach millions, with individual losses ranging from $1,000 to $5,000 per device, depending on the type and technology level.
Imagine a healthcare system that could fully track all equipment at scale!
The days where a client renting equipment swears up and down they’ve already returned the device can finally be over, because you will have unparalleled visibility over all assets with ARTIC.
Manufacturing
Manufacturers deal with shrinkage through losses such as damaged goods, misplaced inventory, and inefficient equipment handling. ARTIC provides comprehensive inventory control by monitoring the movement of goods throughout the production process. This allows manufacturers to quickly address issues like equipment neglect or products boarding the wrong truck.
Losses in Manufacturing
- Misplaced Inventory: Research from Zebra Technologies indicates that approximately 30% of manufacturers struggle with inaccurate or missing inventory data. This leads to production delays, lost sales, and increased carrying costs.
- Inefficient Equipment Handling: According to a report by McKinsey, overall equipment effectiveness (OEE) in manufacturing averages around 60%. This means that significant potential production time is lost due to equipment breakdowns, slowdowns, and improper utilization.
- Damaged Goods Due to Spoilage: ARTIC can help you avoid spoilage on all manner of non-food related products like Pharmaceuticals, Paint, Cannabis, and more. Anything that requires temperature control or has strict temperature thresholds can be monitored.
Keep your production lines humming with a 30,000 foot view of the entire process from raw materials to finished products moving out to distribution centers. ARTIC will help you uncover the weaknesses in your process.
Food and Beverage
In the food and beverage sector, shrinkage often occurs due to spoilage, misscanned products, and ineffective inventory management. ARTIC enables businesses to track items at every stage—from the truck to the pallet to the box—ensuring that products remain within acceptable temperature ranges and reach their destination without unnecessary waste.
- Shrinkage in Food Retail: Food retailers experience shrinkage accounting for up to 3% of sales annually. This includes losses from theft, spoilage, and operational errors.
- Bar and Restaurant Shrinkage: Bars and restaurants can lose up to 20% of their profits due to shrinkage, which includes factors like over-pouring, theft, and spoilage.
- Food Waste: In the United States, food waste is estimated to be between 30-40% of the food supply, which includes spoilage of temperature-sensitive products. [Source: USDA]
Track real time temperature data to dramatically reduce loss from spoilage in the cold chain and beyond. Know if your product has breached these standards before they reach the shelf and cause issues with brand integrity.
The Limitations of Traditional RFID
Traditional RFID systems have inherent gaps that limit their effectiveness:
- Passive RFID relies on stationary readers and can be easily circumvented, making it challenging to maintain continuous coverage.
- Active RFID requires battery-powered tags, which are larger, more expensive, and not suitable for all types of packaging.
RFID is incredible technology, but it does have its disadvantages. From extreme costs to acquire and difficulties to integrate and install, to adding another piece of complex equipment like handheld RFID scanners that have the potential to create more loss.
So what if we could replicate the benefits of RFID while also enhancing its short comings?
Well, we’ve done that and we call it ARTIC!
Here is what you need to know.
The Advantages of ARTIC
ARTIC is a solution pioneering scalable Over the Air (OTA), wireless power networks designed to provide unparalleled visibility, control, and automation over your supply chain.
ARTIC by InTu Mobility addresses these limitations by offering a cost-effective and efficient solution:
- Battery-Free Technology: ARTIC eliminates the need for disposable batteries and handheld devices, reducing both upfront and maintenance costs.
- Continuous Coverage: With network versatility and scalability, ARTIC provides uninterrupted monitoring and tracking of assets.
- Real-Time Data: Businesses receive instant access to data on location, temperature, and who has interacted with each item, significantly enhancing decision-making and prevention of losses.
- Seamless Integration: The system can easily integrate into existing inventory management systems, allowing businesses to leverage their current infrastructure while gaining enhanced capabilities.
How ARTIC Works
ARTIC operates by using overhead power bridges that read tags continuously and send the collected data through gateway devices to the cloud. This data is then parsed and made available to backend computer systems or inventory management platforms through open API calls. This seamless flow of information ensures that businesses have the data they need to make informed decisions in real time.
Transform ‘acceptable losses’ to big wins with ARTIC
Shrinkage doesn’t have to be an accepted loss in your business operations. By integrating ARTIC, you can reclaim those losses by having the accurate, real-time data needed to track, manage, and protect your assets. Whether you’re managing a retail chain, a healthcare facility, a manufacturing plant, or a food and beverage distribution network, ARTIC offers a scalable, cost-effective solution to enhance your supply chain visibility and control, ultimately protecting your bottom line.
If you’re ready to tackle shrinkage head-on and unlock the potential of advanced asset tracking and inventory management, consider implementing ARTIC in your operations. To learn more about how ARTIC can transform your business, reach out to InTu Mobility today.
