Guide

Stock losses in warehouses: why it all starts at the dock

What European studies show about stock loss, process errors and cargo theft, and how photo evidence helps at receiving, transfer and dispatch.

Stock loss is not only theft. An ECR Europe study of the fast-moving consumer goods sector estimated losses at 2.41% of market turnover, and when retailers looked only at known losses, the main cause was process failures (54%), ahead of external theft (26%), internal theft (15%) and supplier fraud (5%) [1]. Process failures include out-of-date, damaged or wrongly recorded goods.

System stock is not shelf stock. ECR Retail Loss research on inventory record inaccuracy shows that records are often wrong, in both directions, because of human error, system limitations, theft, damage and returns. In a field experiment, correcting records was associated with a 4–8% sales increase [2].

And goods in transit. The TAPA EMEA Intelligence System recorded 157,421 cargo crimes in 2022–2024 across 129 countries; fewer than 6% reported a value, and those alone add up to €2.7 billion [3].

Where losses happen in a warehouse:

  • Receiving: the load is signed off quickly and shortages or damage show up after the carrier has left.

  • Transfers between sites: stock in transit has no clear sender, receiver and confirmation.

  • Cold chain: a temperature written late means lost goods or a dispute without proof.

  • Dispatch: without a photo at loading, a claim is closed against you.

What a flow with evidence looks like:

  1. Receiving against the delivery note or invoice, with photos of the load, seals and damage, before the truck leaves.

  2. Temperatures logged on schedule; an out-of-range value opens a ticket.

  3. Every transfer confirmed at both ends.

  4. Outbound loads photographed and confirmed before departure.

  5. Dock and equipment checks per shift, with tickets that stay open until fixed.

  6. One view across all sites: receiving, transfers, tickets, checks.

What to measure. Stock loss (system stock minus physical stock, relative to sales), receiving accuracy and the number of disputes closed with evidence – against your own starting point.

SiteQuilt: receiving with photo proof, invoice matching, transfers between sites, checklists and tickets, multilingual shift guidance, next to your warehouse management system. Tested in production. → See the industry page

Sources: [1] ECR Europe, "Shrinkage in Europe 2004: A survey of stock loss in the FMCG sector" · [2] ECR Retail Loss, "Defining and assessing inventory record inaccuracy metrics" – ecrloss.com · [3] IUMI, "Global cargo crime: the scale of the problem and the role of TAPA", March 2025 – iumi.com

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Frequently asked questions

Is stock loss mostly theft?

Not according to ECR Europe: among known losses, process failures (54%) came ahead of external theft (26%), internal theft (15%) and supplier fraud (5%).

Where do warehouse losses usually start?

At receiving, in transfers between sites, in the cold chain and at dispatch, wherever goods change hands without clear evidence.

What should we measure?

Stock loss (system stock minus physical stock, relative to sales), receiving accuracy and the number of disputes closed with evidence, against your own starting point.

See SiteQuilt on your own workflows