Inventory Shrinkage Investigation Form

Protect Your Bottom Line with Comprehensive Inventory Shrinkage Tracking

Inventory shrinkage can silently erode your profit margins, with losses from theft, damage, administrative errors, and supplier fraud costing retailers billions annually. For warehouse managers, loss prevention teams, and retail operations professionals, having a systematic way to investigate and document inventory discrepancies is essential for identifying patterns, reducing future losses, and maintaining accurate stock levels.

This Inventory Shrinkage Investigation Form template provides a structured framework for documenting every inventory loss incident—from minor discrepancies to significant theft events. By capturing detailed information about loss types, locations, circumstances, and financial impact, you'll build a valuable dataset that reveals trends, highlights vulnerabilities, and guides your loss prevention strategy.

Why Paperform for Inventory Shrinkage Management?

Paperform transforms a traditionally paper-heavy investigation process into a streamlined digital workflow that works for retail stores, warehouses, distribution centers, and multi-location operations.

Smart conditional logic means the form adapts based on the type of shrinkage reported—theft investigations trigger different fields than administrative error reports, keeping forms focused and relevant. Store managers and loss prevention officers can complete investigations on any device, from the warehouse floor to the back office.

Automatic calculations handle the financial impact assessment in real-time, computing total loss values, cost of goods sold impact, and cumulative monthly losses without manual spreadsheet work. This gives leadership immediate visibility into the true cost of shrinkage across locations.

The visual, on-brand design ensures even lengthy investigation forms feel approachable rather than bureaucratic. Add your company logo, use conditional sections to reduce overwhelm, and create a professional tool that teams will actually use consistently—which is critical for building the complete dataset you need for pattern analysis.

Automate Your Loss Prevention Workflow with Stepper

Investigation forms are just the starting point. With Stepper, Paperform's AI-native workflow builder, you can turn each shrinkage report into an automated multi-step process that routes investigations appropriately and keeps stakeholders informed.

Set up workflows that automatically notify district managers when shrinkage exceeds certain thresholds, create tasks for follow-up investigations in your project management system, update inventory management platforms with loss adjustments, and compile monthly shrinkage reports that aggregate data across all locations. Route theft-related incidents to security teams, equipment damage reports to maintenance, and administrative errors to training coordinators—all based on the loss classification selected in the form.

For organizations that need formal documentation and approvals, integrate Papersign to generate incident acknowledgment documents, corrective action plans, or termination paperwork that requires signatures from involved parties, creating a complete audit trail linked directly to the original investigation.

Built for Retail, Warehouse, and Distribution Operations

Whether you're managing a single boutique or a national retail chain, this template adapts to your operational complexity. Small businesses get a professional investigation tool that supports insurance claims and identifies patterns. Enterprise retail operations can deploy the same form across hundreds of locations, using Paperform's reporting features to compare shrinkage rates, identify high-risk locations, and measure the effectiveness of loss prevention initiatives over time.

The form captures everything from SKU-level product details and security footage timestamps to employee statements and recommended preventive actions—creating investigation documentation that satisfies auditors, supports HR actions, and protects your organization legally.

Integrate with Your Retail Technology Stack

Paperform connects seamlessly with the tools retail and warehouse operations already rely on. Send shrinkage reports to Google Sheets or Airtable for trend analysis, notify loss prevention teams via Slack when significant incidents occur, create cases in your HR management system for employee-related investigations, or trigger workflows in your inventory management platform to adjust stock levels.

With Paperform's calculation engine, you can build sophisticated loss impact models right into the form—automatically factoring in product cost, retail value, disposal costs, and investigation time to give leadership a true picture of each incident's financial impact.

Start Reducing Shrinkage Today

Inventory losses won't eliminate themselves, but visibility and consistent documentation are the first steps toward meaningful reduction. This template gives retail managers, warehouse supervisors, and loss prevention professionals a turnkey solution for investigating shrinkage incidents thoroughly, identifying systemic issues, and building the case for targeted prevention investments.

Trusted by over 500,000 teams worldwide and SOC 2 Type II compliant, Paperform provides the security and reliability that retail operations need for sensitive loss prevention data. Get started today and turn shrinkage investigation from a reactive scramble into a systematic process that protects your inventory and your bottom line.