Inventory & fleet
Reducing route-to-market inventory shrinkage in FMCG distribution
5 min read
Shrinkage rarely happens in one place. It leaks out at loading, in transit, at the drop and on the way back — and it hides in the gap between what was picked and what was paid for.
The four leak points
Loading: picked quantities differ from what the invoice says went on the truck. Transit: damage and diversion go unrecorded. Drop: short deliveries are signed for as full. Returns: empties, damages and unsold stock come back uncounted.
Closing the loop
Tie every unit to one continuous record: order, pick, load, proof of delivery, invoice and payment. When each handover is confirmed digitally, variances surface on the day they happen, on the route where they happened.
Expiry-aware picking (FEFO) and returns captured at the outlet reduce write-offs that are otherwise booked as unexplained losses.
What changes for the team
Depot managers see variances by route and vehicle instead of by quarter. Drivers have clear proof of what they delivered. Finance stops absorbing stock losses as a line item nobody can explain.
Common questions
- What causes inventory shrinkage in FMCG distribution?
- Most shrinkage comes from mismatches at handovers — loading, transit, delivery and returns — rather than a single point of loss. Without a continuous record, those variances are only discovered at stock count.
- How does digital proof of delivery reduce shrinkage?
- It confirms exactly what each outlet received at the moment of delivery, so short drops, damages and returns are recorded against the right route, vehicle and invoice.