How to Set Up Shrinkage Rates

Introduction

Shrinkage is the the reduction of a commodity's quantity (mass) due to factors such as moisture, handling and waste, but does not include damaged commodity. Therefore, in stock management at sites and storages, shrinkage and its associated rates are an important factor to consider for accurate inventory and stock levels.

Check out this article: What is Shrinkage (click here)

On the AgriChain platform, you can set up Standard or Special Shrinkage Rates.

• Standard Shrinkage Rates will be at the Site and Commodity Level for a set period of time.
• Special Shrinkage Rates will also be at the Site and Commodity Level for a set period of time but will only be applicable to specific Customers.

To Set Up your Standard Shrinkage Rates

1. Go to the Shrinkages section via your Profile Initials (top right hand corner of the page).
   
2. In the 'SHRINKAGES' tab page, select on the 'Standard' tab and click on the green '+SHRINKAGE' button to set up a new Standard Shrinkage Rate.
3. A window will appear on the right hand side of the page with the header 'Shrinkage'
4. Input and select all the relevant details and click on the 'SUBMIT' button once ready.
5. Your New Standard Shrinkage Rate will be added and the platform will auto-calculate and apply the shrinkage rate based on your selections.

To Set Up your Special Shrinkage Rates

1. Go to the Shrinkages section via your Profile Initials (top right hand corner of the page).
   
2. In the 'SHRINKAGES' tab page, select on the 'Special' tab and click on the green '+SHRINKAGE' button to set up a new Standard Shrinkage Rate.
3. A window will appear on the right hand side of the page with the header 'Shrinkage'
4. Input and select all the relevant details especially the specific Customer and click on the 'SUBMIT' button once ready.
5. Your New Special Shrinkage Rate will be added and the platform will auto-calculate and apply the shrinkage rate based on your selections.

Common Questions

I would like to Edit my existing Shrinkage Rates. How can I do so?

Once your Shrinkage Rates are set up, only certain fields such as the Percentage (Rate), Start and End Dates can be edited.

To do so, follow Steps 1-2 above for either setting up your Standard or Special Shrinkage Rate.

Identify the Shrinkage Rate line item you would like to edit, click on the 3-dot Action button and select the 'Edit' feature option.

Edit the editable fields and click on the 'SUBMIT' button once done.

Alternatively, to start over, you may select the 'Delete' feature option to delete the existing Shrinkage Rate and create a New Standard/Special Shrinkage Rate.

Why am I unable to backdate the Start Date of my Shrinkage Rate?

Shrinkage Rates need to be set up PRIOR to inloads or outloads at your Sites. The AgriChain platform is unable to backdate the Start Date when setting up Shrinkage Rates. Therefore, it is good practice to have your Shrinkage Rate set up e.g. prior to harvest.