FINDING PROACTIVE WAYS TO PREVENT VENDOR FRUAD

February 28, 2017 by Leave a Comment

You know, I’ve talked a LOT about how to prevent employee theft, but one thing I don’t believe I’ve ever talked about is how to stop vendor theft. Depending on your business, you probably have hundreds of different vendors that supply you with inventory. In addition, there’s also a good chance that you have vendor reps in on a weekly basis. While I don’t know your specific set-up, I can give you some examples from my tenure in the LP field on ways that vendors steal from you (whether on purpose, or not) and ways to protect your business.

Verify shipping contents!

If you’re a multi-store location, you may have a centralized warehouse, but if you only have one store, chances are, you’re getting shipments in from a carrier daily. Reputable vendors will never short change you on purpose, but humans are the ones processing every order, so it’s always important to match those manifests up with what you actually received. Any discrepancies should always be reported to the vendor.

I’ve seen once or twice where a small vendor, specializing in maybe a handful of items was purposefully shorting orders. This happened to me a while ago with a line of shirts. Every time we received a shipment, it would be a case short. Eventually we found out they were doing this to every single customer they had in an attempt to raise capital. It backfired and they went bankrupt in the end.

Check the invoice

Did you call a plumber out to fix a leaky toilet? How about the A/C guy to cool things off? Again, 95% of vendors aren’t scamming you on purpose, but billing mistakes do happen. If you’re not vigilant about what you’re signing off on, it could cost you extra money that eats away at your bottom line. Then again, there’s that 5% that may be adding those extra “services” because they know that a check is just blindly written. Always make sure you know exactly what you are paying for!

Vendor Representatives

At least once a week, I have a rep in my stores. Sometimes they come in to merchandise a new fixture, other times, they come to maintain a dedicated area of the store that their product is in, and other times, they come out to do product demos. I had a rep once steal about $1,000 in product from me. She claimed that she needed to remove about several articles of clothing for a vendor “recall”. My manager didn’t think twice about it and she strolled out with a ton of clothes. We discovered a day or two later that she was recently terminated and at the time of the theft, no longer worked for the vendor. Moral of the story, if any of your vendors want to remove product from your store, you should be on the phone with their office to verify.

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TAKE AN OFFENSIVE APPROACH TO EMPLOYEE THEFT

February 28, 2017 by Leave a Comment

I’ve been doing employee theft investigations for years now. Sometimes, they’re a blast. Often, they frustrate me. Not because the person is a thief, but because the loss could be so avoidable if managers would take the time and play offense. Sure, we can run reports and watch video, but all that’s doing is keeping us on the D-Line. You have to play hard and not be afraid to call an audible when needed.

Kick things off in the interview

Are you a good interviewer, or do you just think you are? I’ve sat around and listened to dozens of managers interview potential candidates. Some stick to the HR script, others go off on their own tangents, others talk non-stop for 20 minutes and rarer, are the mangers that take time to get to know their candidate. Just because someone can show up for an interview doesn’t mean they should get the job.

When asking questions, do so in a way that allows you to understand the candidates work ethic. Don’t ask if they enjoy hard work (most will say YES)! But instead ask for examples in their life where they had to work hard at a job or task. Instead of asking if they think it’s wrong for an employee to steal, ask instead at what point do they feel it’s the job’s fault that an employee steals. Bottom line, get the candidate talking. If you’re doing more than listening, take a step back and ask if you really know the candidate before offering a job.

Return with a background check

Trust, but verify. In today’s world, there really is no excuse to hire a criminal. A background check is simple, easy and provide a host of information that lets you make a more informed hiring decision. People lie. Get over and stay ahead of it.

First down with a strong training program

A good employee has to have a strong foundation. Training an employee shows that you are willing to invest into that person. That goes a long way for most people. If someone took the time to invest time, company resources and money into you, chances are, it becomes morally harder for you to steal from that person. Just look at the opposite. Say you hire a new person for your stock team. The only time they have manager engagement is during the interview and they are thrown to the wolves to learn the job on their own. They won’t care about the job and more importantly, they won’t care about you. That emotional tie is severed and an unhappy employee is more likely to steal from you.

Second down with a culture of integrity

Rules and policies are in place for a specific reason. We simply cannot live and work without structure. It’s important to always address policy violations from all of your team members. Don’t let the little things slip; they can easily snowball out of control. For example, let’s imagine Manager Dave is talking near the front lanes with Little Wendy. Little Wendy grabs a cold drink from the cooler and fails to pay. Little Wendy knows that Manager Dave saw her do this, but Manager Dave doesn’t “sweat the small stuff.” Next week, Little Wendy steals a shirt; she got away with drink, right? Week after that, she steals a designer hand bag. Before you know it, Little Wendy is robbing you blind.

Be open with your team about your expectations. Every employee should know that above all else, honesty and integrity is rewarded. Transversely, failing to meet those standards guarantees the quickest ticket to the unemployment line.

Third down with basic control policies

Implement some very basic controls to prevent employee theft. This is as simple as requiring all employees to check out at one designated register. It could also mean that no personal items/belongings such as purses, jackets, backpacks or lunch kits be kept on the sales floor/office areas and that they must be kept in the break room area. It could also be implementing a package check of all employees prior to the end of their shift. For cashiers, you could have policies that limit the dollar amount of return transactions before needing a 2nd level approval. Think of the ways an employee can steal from you and then implement a control to stay one step ahead.

Touchdown with weeding our poor performers

Even the best interviews end up sideways. I can recall at least two from my past. One young man in particular still stands out, even 10 years later. He was the most enthusiastic and well-spoken person I had interviewed in my career at that point. He was going to be a shining star, I just knew it. 3 weeks into the job and I realized he was a complete flake. Attendance was horrible, performance was below standards, couldn’t multi-task. Disregarded the uniform policy; you name it, he did it. At first, I let it slide due to his sales ability and how attentive he was with customers. That, I learned, hurt the morale of the rest of the team. When you have someone that’s not meeting your expectations, cut them. It’s very easy for a person who can’t follow policies to quickly slip into stealing. I’ve seen it happen time and time again.

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Technology And Shoplifting

February 28, 2017 by Leave a Comment

Shoplifting affects everyone. As shoplifting and employee theft seem to be an unstoppable problem for the retail industry, researchers try to find different methods to prevent and combat shoplifting.  Law makers across the country try to pass laws to deter shoplifters by imposing harsher sentences. Technology has for many years now helped loss prevention personnel catch shoplifters, and prevent bigger loses for stores.  But as technology has improved, shoplifters ways have changed to account for the technology being used to catch them.  As the technology evolves, so does the shoplifter. Are you keeping abreast of the problem? Keep reading by clicking the links below.

Why hasn’t security technology put an end to shoplifting?

As the UK crime rate falls, there is one crime that is on the rise. Recent figures show that shoplifting has consistently grown by an annual 6% against a wider backdrop of reduced crime. This statistic is surprising considering the vast amount of time, money and effort that goes into developing anti-shoplifting technology. So why isn’t it working?

How does anti-shoplifting technology work?

The vast majority of retail stores are equipped with several high tech security measures. CCTV cameras are the most common. According to the College of Policing, CCTV is more effective as a method of gaining evidence to catch and convict a criminal than as a deterrent.

Many security camera providers provide monitoring services to ensure footage is captured and analysed as efficiently as possible. However, surveillance systems require careful planning; Banham Group, security experts with more than 90 years’ industry experience, advise that CCTV installation must include guidance, particularly on data protection laws and system legalities.

Through the Eyes of a Shoplifter

In the June 1968 issue of the magazine, then-managing editor John J. Sullivan tried his hand at shoplifting from a few independent stores, just to see how easy it was to get merchandise past the sales register.

He didn’t have much trouble. With prior permission from the owners, he hit six stores in and around one city in one weekend, for a total of almost $250 worth of merchandise in about an hour—more than $1,700 today. Then-editor Bob Vereen got in on the experiment too, taking nearly $25 worth of merchandise in about 10 minutes from one store.

The point wasn’t, of course, to steal product from hardworking, honest hardware retailers. It was to show how easy it was to do so.

For a quick checklist you can share with your employees to make sure everyone is working to improve store security, click here to download our Loss Prevention Checklist.

Not all businesses on board with new shoplifting proposal

QUINCY, Ill. (WGEM) –

A new proposal by the Illinois State Commission on Criminal Justice and Sentencing Reform has been met with multiple opponents.

Right now, any theft valuing over $300 will land you a felony charge in Illinois. An Illinois criminal justice reform group has asked lawmakers to raise that thievery threshold to $2,000, in an attempt to combat prison overcrowding.

Executive Director Amy Looten of the Quincy Chamber of Commerce said on Monday that there are many reasons to oppose it.

“For every product that walks out the door, they’re not paying sales tax on that.” Looten said. “So our local government, our state government is not getting that income from the sales tax.”

Quincy Menard’s Assistant General Manager Scott Warner added on Monday that shoplifting affects many more people than just the person stealing.

 

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Are You Ready To Catch A Shoplifter?

February 21, 2017 by Leave a Comment

Big retail stores across the nation rely primarily in technology to prevent shoplifting according to industry analysts.  The physical loss prevention officers of long ago, are quickly being replaced by technology in the stores.  The interpretation and study of the data obtained fighting shoplifting and employee theft are invaluable during these times. 

While smaller stores rely on locking freezers to protect their merchandise, that is not feasible for most other stores. Smaller stores need to understand the problem, and find a  solution that is reasonable for them.

For more about this and other stories, follow the links below.

Retailer forced to use bike lock on chillers to prevent shoplifting

A Coventry convenience retailer has been forced to fit a bicycle chain lock on his chiller doors to prevent shoplifting after it cost him £12,000 last year.

Paul Cheema, owner of Malcolm’s Store, said as well as the bike lock, he had put bells on the chillers. He said the store had been targeted by gangs stealing large amounts of meat and cheese.

Speaking to Radio 4’s You and Yours, Cheema said: “One man took 32 packs of bacon and 20 packs of cheese. We put bicycle chains and doorbells on our fridges so every time a door opens an alarm sounds.”

He added that he was using social media to post pictures of suspects.

Eyes open: Catching shoplifters takes vigilance, prevention

When a retailer sees someone suspicious wandering the aisles, they can’t just call police.

Acting shady in a store isn’t illegal. Neither is putting an item in your pocket.

Under North Dakota law, an item must be taken past the last point of sale before it is considered stolen.

Jerry Cox, a regional manager for Valley Dairy in Grand Forks, said employees at their nine area convenience stores are trained to watch for shoplifters.

Often, he said, a shoplifter will pocket some items and purchase others. If an employee sees someone tuck something away between the aisles, they have to give the person every chance to pay. The clerk often will ask if there’s anything else they want.

“You have to assume they’re honest,” Cox said.

Using technology in today’s loss prevention career environment

“You don’t have to be an IT guy to understand cyber security, and it’s critical that you have enough of an understanding to know what questions to ask”

As an adjunct professor for AMU’s Center for Applied Learning, Dr. Robert Pittman imparts wisdom to next-generation loss prevention leaders, for whom he has the following warning—you can never “complete” your education. The world, risks, and business are always changing and loss prevention practitioners, and the loss prevention industry as a whole, must continually adapt. If not, individuals will find their career paths limited and the industry itself—just now gaining a seat at the management table—could be pushed to the background.

Today’s major retail operations are driven by technology, and entire supply chains rely on how effectively it is managed. Loss prevention practitioners need to have the skills to effectively navigate this tech-based environment if they want to advance their careers and help the LP industry thrive, Pittman believes. “Loss prevention used to be about focusing on the shoplifter in the store, but that’s completely changed. Those strictly physical security guys are quickly becoming extinct,” he said.

 

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Security Is A Fundamental Part Of Any Company; The Alpha 3 Alarm Can Provide The Protection You Need

February 21, 2017 by Leave a Comment

I have worked in law enforcement for over 15 years and have responded to shoplifting calls on a regular basis. Unfortunately some are more difficult to resolve due to the lack of evidence, mostly due to the lack of security and witnesses. I have noticed throughout my career that store policies fluctuate substantially when it comes to how employees are allowed to respond to shoplifting events. Some stores don’t allow employees to make accusations, even if they see the violation, or to pursue someone who has stolen items from the store. Some of these stores don’t have security or loss prevention personnel and rely on management level employees to handle these types of situations. This can pose a problem when the managers are not working or are not available. This becomes very frustrating for hard working employees who feel as though their hard work and dedication is irrelevant. I had an incident I responded to in which the employee was very frustrated with the lack of security and protocol at her store. I got called to a shoplifter at the mall. When I arrived I was contacted by a shopper who stated she had watched two females exit the store with several items of clothing. She said the two females were running with non-bagged items, which seemed suspicious, yet no one was chasing them. She got the vehicle description and license plate number and provided that to me. After my investigation I learned that the two ladies had been shopping in one of the stores and were trying on multiple items.  A store associate was assisting with size changes when the ladies bolted from the store taking several items with them. The employee indicated that it was against their policy to pursue shoplifters, even if they witnessed the act. The only reason the shoplifters were brought to justice was because of a concerned citizen who acted on instinct. This store had no security in place, no loss prevention and a policy that prevented employee response to these types of incidents, which left them completely vulnerable to theft.  These women had shoplifted from this store on multiple occasions because they knew they could get away with it. Security may not seem important or cost-efficient but I can tell you it is worth the investment. The best way to protect your property and prevent shoplifting is by using Alpha 3 Alarm technology.

 

Various types of security products can be equipped with an Alpha 3 Alarm to support all of your merchandising needs. This technology alerts store personnel in the event of a theft by emitting an audible alarm upon exit. The Alpha 3 Alarm will also sound if someone attempts to remove the device from the merchandise in the store or damages it in some way.  There are various types and sizes of hard tags available to secure your property and prevent shoplifting. They are re-useable and won’t damage the item or garment. They work great as a visual deterrent for those who have the intent to steal from your store. This can provide an alert to the managers or loss prevention personnel, on sight, so they can take action to stop the shoplifter. 

I know many people think that having a loss prevention program is burdensome and expensive. Therefore, having a no pursuit, no contact, no action policy seems easier, but you are not only hurting your bottom line and encouraging shoplifting in your store, but you are also hurting your employees and your customers. Higher shoplifting rates result in higher consumer costs and lower wages, causing dissatisfaction; resulting in employee and consumer loss. The Alpha 3 Alarm is a cost-efficient way to prevent shoplifting, improve profit and customer satisfaction, while maintaining a pleasant shopping experience. 

 

Alpha 3 Alarms are important and we can help you with it. Call 1.770.426.0547 and let’s talk.

 

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Tips To Prevent Shoplifting and Employee Theft

February 13, 2017 by Leave a Comment

Shrinkage and employee theft cost the retail industry an approximate $42 billion a year according to recent industry studies.  Businesses around the globe lose less than merchants in the United States, but the quantity lost is still a tremendous amount that put retailers in a precarious position.  In the United States, the study suggest that close to half of revenue lost is due to employee theft. The retail industry is aware that while shoplifting accounts for a lot of lost revenue, employee theft can be so much more devastating for their business.

To read more about this and other topics, follow the links below.

Law column: Dealing with employee theft

Policies, record keeping can help protect employers.

There recently has been a spate of news articles regarding theft and embezzlement from Iowa cities. Former city clerks in Delhi, Garwin and Vining are all alleged to have embezzled or improperly spent hundreds of thousands of taxpayer dollars.

In another instance, a former city clerk in Casey was even indicted on charges of burning down City Hall to hide her alleged theft.

As the above stories revealed, an employer may not discover the crime until years after it has begun during an official audit or when someone follows a hunch or notices an irregularity. The Iowa State Auditor warned cities to “trust but verify” employees that handle money.

Public employers are not alone. One study by a national supermarket organization found that its employees were responsible for around 56 percent of supermarket thefts.

Such theft included shoplifting, taking cash from registers and/or providing unauthorized customer discounts. Theft should always be a terminable offense.

Top safety tips to prevent shoplifting

Despite the prevalence of security cameras and high-tech alarm systems, shoplifting continues to be a concern for retailers across the country, with well-versed thieves easily able to outwit these technological barriers.

For business owners this alarming trend is especially unnerving, given their reliance on stock and increasing competition from online retail sites. Rather than simply accepting theft as part of business ownership, it is important that storeowners remain vigilant, enforcing appropriate preventative measures and learning to identify some of the key signs that could give a criminal away. 

Here are a few top tips to bear in mind to avoid falling victim to shoplifting:

1. Know the signs

While not all shoplifters employ the same modus operandi, a few key behavioural traits should raise the alarm. Shoppers trying not to be noticed or walking around nervously are obvious candidates, as are those who loiter purposefully, picking up and putting back the same items repeatedly.

4 Home Depot workers in Palm Coast fired after helping nab suspected shoplifter

PALM COAST — Four Home Depot employees in Palm Coast say they are shocked, saddened, and left wondering why they were fired this week after helping to recover almost $1,000 in stolen store merchandise.

Jeffrey Miller, 59, of Palm Coast said he’d been working at the store on Garden Street for 10 years when he was fired Wednesday over a November incident in which he tried to help other employees stop a suspected shoplifter.

He said his help landed an already-wanted thief in jail, but a company spokesman said the interference was against national corporate policy.

“I was really shocked,” Miller said Thursday about being fired. “I never confronted this individual. Even if I saw him in a lineup I wouldn’t be able to show you what he looked like. All I was doing is getting a license plate (number).”

 

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Starting A Better Year

February 6, 2017 by Leave a Comment

According to the National Association for Shoplifting Prevention-NASP-there are 27 million people that shoplift in the United States today. That is 1 in 11  people, and 75% of those people are adults.  Women shoplift as much as men, and in case you were getting ready to profile an individual, there is no such thing as a profile of a typical shoplifter.

The busiest shopping season has passed, and if you haven’t taken inventory or are in the process of conducting one, you will realized the losses you suffered.  For many stores across the country, the holiday season is the busiest season for sales and hopefully profits, but is also the busiest time for shoplifters. One will hope that shoplifting stops when the holiday season ends, but as always, shoplifting is a year long crime that never ends.

What is there to do then?  Vigilance and preparation can help you prevent some of the shoplifting that happens at your store.

Did you know that good customer service can help you prevent some of the shoplifting at your store?

  1. Greet every customer that enters your store and ask them if they need any help
  2. Place high value items behind registers or locked up.  If they want the item, they need to have a person helping them unlock it.
  3. Have visible signs alerting the customer you will prosecute in case of shoplifting.
  4. Make the promise  of prosecuting true.  Believe it or not, shoplifters know which stores are easy target. Which stores have poor security, and which stores cannot really prosecute the shoplifter.
  5. If you check social media platforms, you will realize that there are groups of individuals that ask advice about which store they should target.  The help from other shoplifters is amazing, but you can learn whether your store is targeted and how they go about it.

Prevention, trained personnel, and clear policies and procedures can help your store and profits stay afloat.  The policies and procedures from store to store will change, but the underlying goal is the same.  Prevent losses or at least minimize the amount your store losses to shoplifting and employee theft by having clear goals and exceptionally well trained employees.

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How Businesses Are Combating Shoplifting

February 1, 2017 by Leave a Comment

Inventory, policies and procedures, and every aspect of how you run your store should be checked regularly.  Implementing policies, or business procedures in your store and never checking whether they are working or not is not profitable. Is your return policy being carried out as it was implemented?  Are you letting employees go unsupervised when it comes to returns?  There are many employees that are exceptional workers and work diligently and honestly, but it’s always better to maintain an atmosphere where they know the owner or management of the store are on top of things.

For more news about this and other topics, follow the links below.

Businesses rally to prevent shoplifting

TUCSON (KGUN9-TV) – Serial shoplifters cost business owners in Pima County $5.91 million a year. On Wednesday, the Pima County Attorney, law enforcement, and local retailers partnered together for the new “We Watch, We Prosecute” campaign to stop thieves.

2016 was the first year ever that 100% of retailers say they were victims of organized retail theft, according to a study by the National Retail Federation.
Police say 80% of organized shoplifters steal because of drug addiction.
The Tucson Metro Chamber brought together retailers, law enforcement and prosecutors to form the Coalition Against Retail Theft (CART).
CART’s “We Watch, We Prosecute” campaign will:
Educate retailers and consumers on protecting themselves from organized theft through workshops.

Increase tools for retailers to identify and help prosecute organized retail thieves by working more with law enforcement.

Westport police capture serial shoplifter

Detectives from the Westport Police Department have arrested a man they say is responsible for a number of shoplifting incidents at Lee’s Supermarket.

Police arrested Gutemberg Freitas of Westport for allegedly shoplifting more than $150 during a number of visits to the supermarket. Freitas was dubbed the “gassy bandit” after taking a package of Beano food enzyme supplements out of its packaging and leaving the store without paying for the supplements.

Police say Freitas, on a number of occasions, removed the Universal Product Code (UPC) labels from items then swapped them out with less expensive items. His thefts trace back as far as November 2016.

Diebold Nixdorf debuts world’s smallest self-checkout at National Retail Federation’s BIG show

CLEVELAND, Ohio — Imagine heading to your favorite supermarket and having the store know not only that you’re coming in, but what you plan to buy. Then as you walk through the aisles putting items in your cart, you’re also scanning them with your phone, which keeps a running tally of how much you’re spending as you go.

When you’re ready to check out, you bypass the lines at the registers and head straight to the self-checkout terminal, where you pay for your purchases with cash or a credit card swipe, and walk out.

That’s the kind of scenario that Diebold Nixdorf, the Summit County-based ATM and bank security company, envisions as it unveils what it calls “the world’s smallest self-checkout concept” at the National Retail Federation’s NRF BIG Show in New York on Jan. 15-17.

Diebold Nixdorf’s latest innovation lets customers withdraw cash or pay for their purchases at a kiosk that’s less than 10-inches wide, or the length of one and a half dollar bills. The kiosks take up a fraction of the floor-space of current ATMs and self-checkout registers and combines those abilities within a single unit that can fit almost anywhere, the company said.

 

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Set The Tone For Your Business In 2017

January 31, 2017 by Leave a Comment

How did your retail business do in 2016? Face it, regardless of how well you did or did not do, you could have done much better. The key is to keep your cash, assets and merchandise on YOUR bottom line not someone else’s. Thieves take the money you could have had away, easily in some cases.

The problem is that thieves like shoplifters and employees that steal from you, are attracted to you like flies to honey. Only your assets are the honey. And once one finds you and your weakness, then here they come. Shoplifters talk to each other. They are no different from anyone else. Shoplifters associate with, well other like-minded people… other shoplifters. They share ideas, techniques and discuss the best places to score. If you make their list, then you become the honeycomb not just the honey.

The key is to set the right tone. For example, with shoplifters you must have a two prong attack. First, excellent customer interaction; every customer must be recognized when they enter your store. One out of ten people that walk through your doors is there to shoplift. That is an established fact, yes, even in YOUR store. It is also well established that over 50% of those shoplifters will not shoplift during that visit if greeted.

But what about the other nine people? They are your legitimate customers that you depend on. Greeting them is also critical. It lets them you know you appreciate them and their very presence. This type of interaction also tends to close more and better sales. Why are they in YOUR store as opposed to a big box retailer? You may even sell some of the same merchandise. For the most part they are looking for that interaction, give it to them!

The second piece is electronic protection. You and your staff cannot be everywhere, with every customer all the time. Shoplifters seek out this situation and in many cases will create it. An Electronic Article Surveillance (EAS) system such as a Checkpoint System is actively working 24/7 and tells the one out of ten shoplifters “go away” even as they enter your store. Shoplifters know what a Checkpoint System is and will shy away. They will go down the street to someone who is “easier”. Your other 9 customers will not care or in most cases even know what the system is for.

2017 is time to kick butt in sales. By all indications the economy will start to pick up. Let that work for you, not the shoplifter. Contact us today. We can help you with BOTH pieces, customer interaction and a Checkpoint Systems solution and help you make ALL of 2017 a great retail sales and profit year.

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Ask A Trusted Friend To Look At How You Conduct Inventory And Receiving Processes; You Could Improve Profitability

January 31, 2017 by Leave a Comment

It is human nature, we have a way we do things, we get comfortable and someone comes along with a suggestion and we get defensive. We think to ourselves, “My way works, why change it?” When asked why we do something the way we do, we may resort to using the old, “Because we’ve always done it this way” excuse to answer an inquiry. On occasion we may not want to try something new because it involves new technology we may not be familiar with. I remember when (no laughing) Loss Prevention moved from recording on VHS tape recorders to digital recording. New technology does not come easy to me and I had to learn how to use it or get passed by. In the long run, it was a better method of storing video overall. We could search transactions more easily for suspected employee passing incidents or cash theft.  We could narrow searching to specific times and we could create recording “zones”. Recording only activated when someone walked into the “zone” we were concerned with due to missing merchandise. Electronic Article Surveillance anti-theft devices became more prevalent with new and improved capabilities. Learning to trust the technology to prevent shoplifting and allow stores to take more merchandise out of lock-up cases and put them on store shelves for customer access was a difficult transition for an old school Loss Prevention Manager. In the long run these changes were for the better. We improved time management with digital recording and closed investigations faster. EAS freed up the time to unlock showcases and drove sales with increased customer access to merchandise.

      The truth is, often there is a better way to do things either because it is more cost efficient, it can save time or it is more accurate. One way to determine if there are areas for improvement for your inventory and receiving processes is to ask a trusted friend to go through and review how your store operates. The friend does not have to be an expert in receiving best practices, per se, but they should be good at evaluating how something is done and being able to ask, “Why?” and saying, “What if?” A friend will also have your trust and be able to be brutally honest with you about deficiencies in how you are doing something. You have to be prepared to take critiques and suggestions and not personalize them.

     What are some things you may seek to have evaluated in regard to receiving or inventory practices?

  • How frequently are vendors giving you credit on product that is not selling.
  • Some vendors such as cosmetic and jewelry vendors come in with laptop bags, purses boxes, etc. Do you inspect these for hidden merchandise before they leave your building?
  • Do you react to an EAS alarm for a vendor the same way you do for a shoplifter?
  • How much space in a stockroom is a vendor taking up with their products and can it be reduced?
  • How often is your store serviced by your vendors?
  • Have your product delivery evaluated? Is the store processing the merchandise and getting it to the floor in a timely and efficient manner?
  • Is product protected with EAS tags and anti-theft devices when it arrives to the store or after it is stocked on the sales floor?
  • How do you have your stockroom organized and how easy is it to locate merchandise to get it to the sales floor?
  • For inventory does your store count the merchandise and report it or do you bring in a professional inventory service?
  • How do you prep your store for inventory, especially your stockroom areas? Do you keep your stockroom inventory-ready all year or do you scramble to make it “countable”?
  • If you use a professional inventory service, do you still do a significant number of pre-counts or do you let the inventory company do what they are hired to do and can do better?

These are just a few suggestions that an evaluation of your procedures should include. The benefit to you may be that there are things that you can implement or change that will save payroll, increase productivity, improve efficiency and ultimately improve profitability.

     

     

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