Shrink Isn’t Just in the Store—It’s in Your Ledger
- Jon Allen
- 3 days ago
- 1 min read
We hear a lot about shrinkage in retail—shoplifting, organized theft, and inventory errors. But here’s something not enough suppliers talk about: shrink happens in your books, too.
Let’s call it ledger shrink. It's the deductions and chargebacks you didn’t dispute because they felt too small, too complicated, or just fell through the cracks. It’s the accidental double-dip on freight. The compliance chargeback for a rule you followed but didn’t document well enough. The promo that ended in Q2 was somehow deducted again in Q4.
Here’s a fictional—but—familiar scenario: A mid-sized snack company runs a seasonal promo with a regional retailer. It’s cleared, executed, and ends on time. However, months later, the accounting team identifies three additional deductions tied to “expired promo rates.” Why?
Because someone at the retailer failed to update the system, and the supplier, buried in other priorities, writes it off. It’s just $3,200… but do that four times a year, across five retailers?
That’s over $60K in silent shrink.
A 2024 survey from SupplyChainBrain found that 71% of suppliers say they “rarely or never” go back to dispute smaller or late deductions.
That’s a problem. Because those "smaller" ones add up—fast.
What You Can Do:
Track aging deductions by category, not just total value.
Create a post-promo audit checklist.
Engage a recovery partner who doesn’t just stop at open deductions—they go back and dig into history.
It’s not just about avoiding loss. It’s about reclaiming the margin you’ve already earned.
Let's talk.
