Orlando Warehouse Insurance: Preventing Inventory Losses
Central Florida distributors have a high exposure to losses, especially as hundreds of goods and packages move in and out of the facility every day. The larger an operation, the more susceptible to costly losses they are. Accurate inventory reporting and monitoring is one of the most effective means of preventing property and liability losses, however it is often a huge hurdle for many Orlando warehouse.
Inventory reporting is a complex process and no two operations are exactly alike. There is a vast array of accounting, stock tracking and record keeping methods utilized by distributors, all of which can leave room for errors and mistakes. These factors on top of the sheer volume of items being processed and handled every day by Orlando warehouses, makes it difficult to measure inventory accurately. As a result, many Central Florida operations experience inventory shrinkage.
Inventory shrinkage is essentially any discrepancies between recorded inventory numbers and tangible inventory records. There are countless reasons for shrink, from employee dishonesty and theft to simple human errors. One common reason behind inventory shrinkage is simple miscalculation. Data entry and record keeping errors, including improperly coding or storing items, paying a vendor invoice twice or overshipments are the most common causes of inventory losses. As such, ensuring that all stock, inventory and purchases, and sales are accurately recorded can help avoid losses and other complications. Additionally, many professionals recommend reducing inventory on hand to minimize the likelihood of losses and lower operational costs.
If you own a wholesaler, warehouse or distribution operation in Central Florida you are innately exposed to a unique set of risks and challenges. In order to properly protect your operation, it’s important to determine your particular needs and exposures. Newman Crane is a premiere Orlando insurance company that specializes in finding comprehensive business insurance and risk management solutions for Orlando distributors. Our Orlando warehouse insurance specialists can help you secure coverage for property and liability losses. To learn more about Orlando warehouse insurance and our complete commercial insurance portfolio, give us a call today at (407) 859-3691.