Find Shrink Drivers with Pareto
Use Pareto analysis to identify and act on the biggest shrink drivers.
May shrink increased, but the loss report has 14 categories and no obvious focus. Pareto analysis ranks categories by impact and focuses action on the vital few. The common trap is giving every shrink category equal meeting time because every category has a story. List dollars by category Annual baskets $2,900; patio roses $1,750; pottery $620; seed packets $180; all others below $150. Use dollars, not only incident count, because management effort should follow business impact. Sort high to low Annual baskets and patio roses sit at the top of the ordered list. Sorting makes the vital few visible without…
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