Use Pareto to Focus Shrink Work
Use Pareto analysis to prioritize shrink countermeasures by largest loss contributors.
The store has $18,400 in monthly shrink across six categories, and leaders are debating which cause to attack first. Pareto: rank categories by loss, calculate cumulative impact, and focus the first countermeasure on the vital few. The common trap is reacting to the most vivid story instead of the largest verified contribution. That makes the plan feel urgent while leaving most dollars untouched. Rank Sort shrink categories by dollars: receiving variance $8,500; damage $3,600; cashier error $2,700; known theft $1,900; return mismatch $1,100; transfer discrepancy $600. Pareto starts by ordering impact, not by debating which cause is most annoying. Calculate…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in