Business Pitch Dictionary by pitch.dog
Inventory, demand & supply planning · Core

Shrinkage

Also called: stock shrink

ELI5

Inventory loss from theft, damage, error or unrecorded causes.

Used in conversation

“Keep shrinkage on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Shrinkage” in operating plans, procurement packs, supplier reviews and supply-chain reports when the discussion reaches inventory, demand & supply planning.

Why it matters: In inventory, demand & supply planning, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 3

Direct term-level sources and supporting source families.