Managing Shrink

A computerized assessment program

One of the most talked about problems in feed production is loss to shrink, and since shrink is so common, management inquiries often start with the question, “What’s the average shrink for an operation like mine?” Because Cargill Animal Nutrition has over 160 feed operations of its own around the world, its shrink management program includes a comprehensive, worldwide database with mill facilities and production operations similar to yours, noting the world class standard as well as average shrink for your type and size operation. 

How it works

Shrink occurs throughout the feed production process

• Receiving: bulk ingredient leaks or moisture in inbound delivery, weighing errors at receiving, delivery vehicle cleanout, dust loss or spillage while unloading, broken ingredient bags, or bag count errors. 

• Mixing and grain processing: moisture loss, scale or feeder inaccuracy, re-work due to operator error, spills, leaks and spoilage.

• Pelleting: moisture and dust losses contribute to shrink, along with off-grade pellets, spills, leaks and cleanout material.  Whether bulk or bagged feed loadout, shrink occurs by weather loss, spills, weighing, counting/loading errors, and theft.

• Packaging: overfill, scale inaccuracy, damaged bags and rework from setbacks all cause shrink.

• Warehousing: damage due to rodents, birds and insects, moisture loss in bags, poor inventory control and obsolete products are common. 

• Delivery: in-transit leaks or damage, theft, and dust loss or spills while unloading.

Applying its extensive data inventory and detection tools, Cargill’s Consulting Services conducts a thorough audit of each of these departments and processes.

The audit is followed by an R.O.I. assessment of solutions.  Additionally, the Cargill program incorporates shrink management best practices, such as: