EFuturesCFO · Retail Suite
Shrinkage & Loss Prevention Analyzer
Track inventory shrinkage from theft, damage, admin error, and vendor fraud — and model the ROI of loss prevention programs.
Executive Summary
Shrinkage Sources
Cost allocation across loss categories
Strategic Levers
Ranked by estimated loss reduction
Quarterly Shrinkage Projection
Shrinkage vs LP cost over 8 quarters
Executive Recommendations
Loss prevention program priorities
Methodology
Total Shrinkage = Annual Revenue × Shrinkage Rate. Source costs allocate Total Shrinkage by External Theft, Internal Theft, Admin Error, Vendor Fraud, and Unknown %. LP Cost = LP Staff × Avg Comp + Technology Investment + LP Budget. LP ROI = (30% of Total Shrinkage − LP Cost) ÷ LP Cost. Total Losses = Total Shrinkage + Cyber Fraud + ORC Incidents × Avg ORC Loss. Quarterly trend applies a mild improvement curve to shrinkage while holding LP cost flat.