What tracking stock losses involves
A stock loss is any stock that leaves without a corresponding sale: theft, spoilage, damage, expiry or error. Tracking losses means always knowing two figures, what you should have (expected stock, from accurate stock-in and stock-out) and what you actually have (from a physical count), and treating the difference as a number to explain.
This depends on a reliable expected-stock figure, which only exists if you record every delivery (against the supplier invoice) and every sale, and log every write-off, damage and transfer. If any of those are sloppy, the expected figure is wrong and the variance is meaningless.
Done well, stock-loss tracking gives you variance by product and period: you see exactly which items are losing stock and how much, which is the foundation for reducing it, whether the cause turns out to be theft, spoilage or process error.
How to track stock losses, step by step
Build a reliable expected figure, then measure against it.
- 1
Step 1: Record all stock received
Log every delivery against the supplier invoice and verify quantities on arrival, so stock-in is accurate from the start.
- 2
Step 2: Record every sale
Every sale must reduce system stock. Accurate stock-out is half of a reliable expected figure.
- 3
Step 3: Log write-offs, damage and transfers
Record every non-sale stock movement with a reason and approval. Unlogged write-offs corrupt your variance and hide theft.
- 4
Step 4: Count physical stock regularly
Count actual stock against the expected figure, frequently for high-value and fast-moving items, periodically for the rest.
- 5
Step 5: Calculate variance by product
For each item, expected minus actual is your stock loss. Track it by product and period so you see where loss concentrates.
- 6
Step 6: Investigate and act
Treat each significant variance as a question. Diagnose the cause (theft, spoilage, error) and apply the right control, then re-measure.
Stock-loss tracking mistakes
Inaccurate stock-in
If deliveries are not checked against invoices, expected stock is wrong from the start. Verify on receipt.
Unrecorded sales or write-offs
Missing sales or unlogged write-offs corrupt the expected figure, making variance meaningless. Record everything.
Counting too rarely
Infrequent counts let losses accumulate and obscure when they happened. Count theft-prone items often.
One overall figure
A single loss number hides which products are affected. Track variance by product to target action.
Measuring but never acting
Tracking loss is only useful if you investigate and fix the cause. Close the loop.
A wholesaler gets a number to act on
A wholesaler in Nairobi knew stock went missing but had no figure, deliveries, sales and write-offs were all recorded loosely, so nothing reconciled.
They tightened the basics: deliveries checked against invoices, every sale recorded, write-offs logged with reasons, and regular counts. For the first time they had variance by product.
The numbers showed a handful of lines accounting for most loss, some to theft, some to damage in handling. With a clear figure per product, they fixed each cause and watched the variance fall.
Stock you cannot see is stock you lose: dead capital sitting on slow shelves, empty shelves on your fast movers, and shrinkage no one can explain.
Veira tracks every item in and out with reorder alerts, so you hold the right stock and losses surface early.
How Veira tracks your stock losses
Veira keeps an accurate expected-stock figure by recording every item received against invoices and every sale, and requiring logged, approved write-offs and transfers. At each count it calculates variance by product, so stock loss is a clear number, not a mystery.
You see exactly which items are losing stock and how much, the foundation for diagnosing the cause and reducing it, all tracked over time and visible from your phone, from KES 2,999 a month.
Frequently asked questions
How do I track stock losses?
What counts as a stock loss?
Why is accurate stock-in important for tracking losses?
How often should I count stock to track losses?
Why track losses by product rather than overall?
Can software track stock losses for me?
Stock losses you do not track are losses you cannot manage. Veira keeps an accurate expected figure and calculates variance by product at each count, turning loss into a number you can act on, from KES 2,999 a month. See how Veira protects your stock and book a free demo.