Inventory / stores
Stores Inventory Shrinkage
Stores shrinkage measures the gap between book and counted stock across store types, exposing theft, diversion, expiry and record failures.
Why Stores Shrinkage Matters
Inventory shrinkage is loss that hides between two numbers â what the books say is on hand and what a physical count actually finds. In pharmaceutical, maintenance and consumable stores the gap can mean theft, diversion, expiry or simply broken record-keeping, and GRAP requires inventory to be stated at the lower of cost and net realisable value with losses recognised. AuditPro Core reconciles book to counted stock across store types so shrinkage is quantified, located and explained rather than written off in silence.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Shrinkage value
R54 m
âČ 9%
Shrinkage rate
3.8%
of stock value
Stores counted
212
Stores over 5%
34
Shrinkage by store type (R m)
Highest-shrinkage stores
| Store | Shrinkage % | Value (R m) |
|---|---|---|
| Hospital pharmacy A | 7.2 | 8.4 |
| Depot parts store B | 6.1 | 6.2 |
| Clinic store C | 5.4 | 3.9 |
| Works store D | 5.1 | 3.1 |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Book vs Counted
Shrinkage is the difference between recorded stock and the physical count. A persistent negative gap means inventory is leaving without a corresponding record.
Cause Breakdown
Shrinkage has distinct causes â theft, diversion, expiry, damage and capture error. Treating them as one number wastes effort; separating them targets the right control.
High-Risk Stores
Pharmaceutical and high-demand consumable stores carry the greatest diversion risk. Shrinkage rates by store type show where physical and system controls most need tightening.
GRAP Recognition
Confirmed losses and write-downs must be recognised and disclosed under GRAP. Reconciliation provides the evidence that the write-down is genuine, not a cover for poor counting.
How AuditPro Core Bridges the Gap
- Stock reconciliation: AuditPro Core matches book to counted quantities by store and line so shrinkage is precise.
- Cause classification: variances are split into theft, expiry, damage and error to direct the response.
- Exception workflow: material shrinkage routes to investigation and write-down approval with a documented trail.
- Audit-ready output: the shrinkage schedule exports as evidence for the inventory working paper.
Key Takeaways
- Shrinkage is the gap where inventory loss hides in plain sight.
- Separate causes; one shrinkage number conceals four different problems.
- Pharmaceutical and consumable stores carry the highest diversion risk.
- Reconcile before you write down, or the write-down hides the cause.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records â every figure traceable to source.