LOSS VISIBILITY
Introduction
Loss prevention is far more complex than just shoplifting and employee theft.
The rate of loss continues to be high. Global retailers lose over:
• $51.5 billion to crime
• $41.7 billion to internal theft
• $16.7 billion to process failures
Source: Kurt Salmon
What is Loss Prevention (Shrink Management)?
Loss prevention is essentially free money on the table.
What factors cause Losses?
Theft by customer Theft by employees Vendor fraud or mistakes
Administrative errors Inefficient processes Perishable Inventory
What to do?
Take loss prevention seriously.
Strategic Level Factors
Senior Management Commitment
• Making sure that senior executives are aware and supportive of the need to priorities loss prevention.
Organizational Ownership
• Making sure that all of the functions within the organization recognize the importance and value of loss prevention.
Embed Loss Prevention
• Making sure that loss prevention is part of the fabric of the business and acted upon by all departments.
Cultural Level Factors
Provide Strong Leadership
• Generating energy, direction, focus and a vision for loss prevention in the company.
Generate Barometer Management
• Creating and analyzing data to enable decision making to be based upon an evidence-based approach.
Prioritizing People• Making sure employees take shrinkage seriously. Create a loss
prevention team that is multi-faceted and forward thinking.
Prioritizing Innovation and
Experimentation
• Recognizing that retailing and loss prevention is a dynamic arena that requires new thinking and a willingness to change.
Create Store Management
Responsibility
• Without the active support and engagement of all store staff, but particularly managers, loss prevention will not be properly controlled and minimized.
Operational Level Factors
Utilize latest technology to enable real-time inventory visibility
Loss Visibility through stock take on daily basis:
> Identify shrinkage as they happen. > Identify employee theft/vendor fraud right away. > Fix broken processes.
Authenticate transfers between DC and stores.
Move to RFID-based EAS to differentiate the value and quantity of merchandise leaving the store.
Impose accountability & control with smart applications (i.e. auto Alerts & Notifications, Smart Showcase, Smart Cabinet Lock, Staff Tracking, etc.)
Combine RFID + video surveillance to know WHEN it was moved, WHO moved it, WHERE it was moved to.
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Summary
Shrink management is the last un-covered profit center.
Without a sound LP program, your losses will grow as your business grows.
LP does not start and end at your retail floor. It touches every part of your operation.
When every part of the business thinks shrink, it ensures that LP is embedded in the organizational structure and culture.
Thank You
Offices in USA and Dubai
USA: +1-888-426-RFID(7343) Toll Free
Dubai: +971-4-447-5343
Website: www.dominateretail.com
Email: [email protected]
DominateRetail @DominateRetail company/dominateretail