Prevent Theft

The definition of inventory loss is simple: A condition that occurs when there are fewer products on hand than should be; resulting in lower sales and shrink. In other words, when you do your regular inventory count (these should be done at least annually, by the way, and more often if necessary) you find that the number of merchandise physically counted is lower than the number of merchandise that your books projected that you should have on hand. This is inventory loss and this leads to loss in profits, and we all learned this complicated equation in Business 101: no money = bad.

Now that we all know what inventory loss is the trick is to find a way to prevent it. In order to do that we need to know where it comes from. Most of it comes from waste, pilferage, internal or external theft. Increased loss prevention measures will help you to establish where your loss is coming from. If it is a case of internal or external theft (employee theft does make up around 40% of all shrink from retailers in the U.S.) then it’s time to send a message that this type of behavior won’t be tolerated. Place signs stating that “All shoplifters will be prosecuted” and install a CCTV system, if you haven’t already, to warn all employees and customers alike that they are being watched.

When you do catch someone (whether internal or external) prosecute that individual to the fullest extent of the law. You’d be surprised at how fast bad news travels within an organization or a community. On the other hand, if your loss is coming from waste then you need to reevaluate your processes to figure out if you are doing things as efficiently as possible. If not, it’s time to sit down with your team leaders and come up with a new strategy. Regardless of where it originates, inventory loss is a serious problem for any company. Take a proactive approach to limiting it and it’ll save you lots of trouble.

For more information about inventory loss prevention , inventory loss  or inventory shrinkage contact us at prevent retail theft or call 1.866.914.2567 – Atlanta Georgia

One of the truly unfortunate truths of business is that you’re going to have  inventory shrinkage ; the trick is controlling it and keeping it at a manageable level. Well, you can’t control what you don’t understand. Therefore I’ve compiled a short tutorial to show you how to calculate your inventory shrinkage . Hopefully this will allow you to get a better grasp on what you need to do to keep that shrink monster in the closet.

First, check your company’s records to determine the value of inventory that you should have in stock based on prior inventory totals and the value of goods sold. This number is known as the book value.

Next, total the actual value of inventory that you have in stock. This number will most likely be different than the book value because of losses, damaged goods or theft.

Now subtract the actual amount of inventory from the amount that you should have according to your own financial records. (You should be keeping an eye on your inventory shrinkage by logging your known losses, damages and theft throughout the year).

Divide the difference by the amount you should have to calculate the shrinkage rate. Multiply the shrinkage rate by 100 to convert to a percentage. This percentage is the amount of your inventory that has disappeared through theft, damage or paperwork errors. Depending on how you keep your books this number may be a little disheartening. However, there’s hope. This number is simply a starting point for you to examine your processes by and find out where and why your inventory shrinkage is at that level… and fix it.

For more information about inventory loss or inventory loss prevention or inventory shrinkage contact us: prevent retail theft or call 1.866.914.2567 – Atlanta Georgia

I recently interviewed an employee of a large retailer that had contributed quite readily to the inventory shrinkage of that store, in a short amount of time.  He had a friend of his that was a cashier give him an expensive gaming system by pretending to ring it up at the register.  When a week or so passed and they were never caught, he let his friends know.

His friends just had to go through his register when he was working, and they received gaming systems, movies, clothing, etc.  By the time I interviewed him the thefts had only been going on for about three weeks, and the total loss was estimated at over $1500.

This type of inventory shrinkage is common among retailers, and can be difficult to identify unless you have good procedures in place to track your inventory.  In this case, an alert electronics employee alerted asset protection that there were missing gaming systems that had not been sold.  The inventory loss was identified resulting in these thefts being stopped relatively quickly.

A business owner can prevent retail theft like this by keeping track of your inventory, especially high ticket and high theft items that are desirable to thieves.  By randomly checking these items as often as possible, and comparing the quantities on the books to sales and physical inventory, an  inventory loss can be identified quickly after it has occurred, minimizing the total loss experienced by the business.

Inventory shrinkage results in lost profit.  We are in business to make a profit, not to incur a loss through shrinkage.  Quickly identifying the cause of the inventory loss , such as a thieving employee, and eliminating it is the best way to stop this type of inventory shrinkage . 

Your aggressive business attitude is the first line of defense to prevent retail theft !

For more information about inventory shrinkage or inventory loss contact us at: prevent retail theft or call 1.866.914.256 – Atlanta Georgia

Every business owner who opens his doors to the public is concerned, or certainly should be, with how to prevent retail theft . It’s a two-edged sword – in order to make a profit in the retail business you need people to frequent your establishment; however, every person that steps into your store is a potential threat to that bottom line that is infinitely important. What do you do? Here are a few pointers that may help you keep a handle on things within your store.

Be vigilant in your pricing. Loosely controlled pricing procedures can leave you open to huge losses both internally and externally. Only certain individuals should be allowed to set prices and mark merchandise, and all pricing should be done by machine or controlled rubber stamp. Price switching is a common way that shoplifters will try to gouge you. The next thing you know an item that should have costs $100 just walked out the door for $19.99. Who eats that loss? You got it, you do!

Also, keep an eye out for fraudulent refunds. There are many cases where an individual comes in and buys a coat. The next week they come back in, select the very same coat from the rack and go up to the refund counter with what appears to be a valid receipt to get their money back. If you’re not careful you just gave away a free coat. Keep your refund counter near the entrance and train your associates to be aware of what an individual walks into the store carrying and what they pick up while inside.

It can be tricky to prevent retail theft . After all, the thief has nothing else to do with their time but try to figure out how to hustle you out of your money and merchandise. You, on the other hand, have a business to run and legitimate customers to support and supply. However, employing just a few of these tips at the onset can save you a great deal of heartache and even more greenbacks. Spread the word, it’s everyone’s job to prevent retail theft 

For more information about inventory loss or inventory shrinkage contact us: prevent retail theft or call 1.866.914.2567 – Atlanta Georgia

Retailers face  inventory loss / inventory shrinkage every day and battle with how to reduce it.  There are several ways to reduce inventory loss / inventory shrinkage which include a balance of both installed technology and written company loss prevention procedures implemented by personnel.

A simple “hello and welcome” to every shopper while looking them in the eye will reuduce shoplifting.  Ameteur and impulsive shooplifters will not steal according to studies when they feel they have been recognized.  The two magic words that reduce shoplifting / inventory loss / inventory shrinkage are “customer service”.  Shoplifters hate customer service and will leave empty handed, and will not likely return.

Installing cameras are thought to be a way to control inventory loss / inventory shrinkage however it is a passive solution.  Only the recorded event will be helpful if you know when/ where to look for it to be used as evidence in prosecuting thieves or employees stealing.

Installing a EAS system, electronic article surveilence system will reduce sholifting losses by as much as 70% as proven recently by Price Waterhouse Coopers study of a major supermarket chain.  Checkpoint systems is the leader in EAS systems.

The University of Florida’s Retail Security Survey reported that the average value of a shoplifting incident is $256.  At a 2% net marging the retailer would have to sell $12,800 to generate $256 of profit to replace the stolen goods.  Stop that theft from happening and all that money hits the bottom line net profit margin.

For more info visit inventory loss / inventory shrinkage 

Well you may be thinking your inventory shrinks, as in from a medium to a small. Nope not it exactly…the term inventory shrinkage refers to the loss of products between point of manufacture or purchase from supplier and point of sale.

So what in the world would cause inventory shrinkage you ask?  Want to take a guess what the main cause is, it might surprise you to know that it is attributed to employee theft!  The second largest cause is shoplifting.  According to the National Retail Security Survey, 2009, an estimated 44% of shrinkage in 2008 was due to employee theft, totaling over $15.9 billion. Another 35% was due to shoplifting, totaling over $12.7 billion.

Other causes can be damage of the merchandise in transit, employee errors, such as giving a lower price by mistake to the advantage of the customer, or vendor fraud.

How does inventory shrinkage affect the small business owner? If your shrinkage numbers are large, your profit margin goes down.

How does inventory shrinkage affect the consumer? Well, if your business profits go down, you in turn must raise prices to your customers to still maintain the same level of revenue income you would have experienced before the shrinkage.

The best way to eliminate shrinkage is to identify the cause.  By implementing an inventory management system, you can not only identify where your inventory shrinkage is originating from but you can also establish ways to prevent it.  I’m pretty positive in today’s economy; every dollar small business owners can send to the bottom line is a huge benefit.

For assistance contact us at inventory shrinkage or call 1.866.914.2567 – Atlanta Georgia

There are a number of ways to prevent theft within your organization and with a little common sense and ingenuity I promise you’ll be able to reduce your company’s inventory shrinkage . Let’s start at the beginning with employee background checks. Everyone from your Director of Operations to the guy/ girl who takes out the trash at night should undergo and extensive screening of their criminal and labor history. Credit checks are also a good way of determining a person’s level of personal responsibility. After all, if I can’t take care of my own money I’m probably not going to do a very good job at taking care of yours. 

Next is my personal favorite: cameras. Install an effective and operational CCTV system in your place of business. Place cameras in plain sight. True, nobody likes to know that “big brother” is watching their every move, but they enjoy the prospect of being taken out in handcuffs even less. Say what you want to but fear is a great deterrent. EAS, or Electronic Article Surveillance, is another excellent way to prevent theft in your company. Audit everything from your receiving processes to the way merchandise gets moved to the sales floor to the way its handle at the point of sale. If your company has a process there’s a way to check it to make sure it’s being handled properly. Do so, and do it regularly and vigilantly.

Lastly, there’s no reason for everyone and their Aunt Gretchen to have the combination to your safe. Limit access and keep an up to date log of everyone who has that access. If someone happens to quit or be terminated, change the combination immediately and update your log accordingly. These are just a few tips and strategies that I’ve found useful over the years. Take heed and they will help you prevent theft within your organization.

Do not let your inventory shrinkage put YOU out of business!

For more information about inventory shrinkage or inventory loss contact us: prevent theft call 1.866.914.2567 – Atlanta Georgia

Nearly 50% of all inventory shrinkage comes from employee theft. In case you’ve been out of touch for some time, inventory shrinkage is the difference between book inventory (the amount of merchandise the company says you should have on hand) and actual inventory (the amount of merchandise that’s actually in the store).

Even if you feel you don’t have much of a problem with employee theft I encourage you to employ these methods. You may feel differently in a very short time.

Keep the back door to your business locked and alarmed at all times. This goes for any loading docks that aren’t actively in use as well. An employee simply taking merchandise out the back door is one of the most common ways employee theft occurs. Have a member of management inspect the garbage before it’s taken out. It’s a dirty job, but somebody’s gotta do it. Review your CCTV recordings on a regular basis, and more importantly make sure everyone knows that you review them regularly. Have a member of management review your register transactions every day. Check your voided or cancelled sales reports as well as your returned transactions and inventory adjustments reports.

Make sure that everyone within your organization knows that these practices are taking place. Remember, our goal here is to reduce inventory shrinkage . It’s great when we can catch a thief, but the hard truth is we rarely ever catch them on their 1st time and once merchandise is gone it’s probably gone forever. We want to deter the theft before it takes place. Make the would-be thieves think twice, knowing that you are vigilant and dedicated to reducing inventory shrinkage.

For more information contact us: inventory shrinkage or call 1.866.914.2567 – Atlanta Georgia

The fact is that even when we know it’s going on it’s still rather difficult to prevent theft in the workplace for multiple reasons. One of the main reasons I’ve found is that often times employees don’t fully understand what constitutes theft. Sometimes they feel as if they’re just borrowing the merchandise, or delaying payment for it. Other times they feel that the item is so small or insignificant that you, the employer, “won’t miss it”. 

The other day I approached a cashier. We’ll call her Jane (simply because that’s not her name). Jane’s eyes got as big as saucers when she saw me coming and she struggled to swallow down something she was chewing. I asked, in a semi-joking fashion, “Did you bring enough to share with the class?” She immediately responded, “Oh, it was just a candy bar. I was gonna pay for it when I went on break.” It took me 15 minutes to explain to Jane that even though she may have intended to pay for the candy, the fact that she had consumed it before actually rendering payment constituted theft. Jane was flabbergasted. 

I’ve actually seen employees go into the register, take out $40 bucks on Thursday and replace it on Friday after they get paid. They thought nothing of this practice because their intent was not to steal. The problem is they, like Jane, never really understood what constituted theft. It’s your job as an employer to establish easily understood rules and guidelines and to enforce those rules vigorously. Do this and you’ll be able to prevent theft in your workplace much easier.

For more information about inventory loss or inventory shrinkage contact us: prevent theft or call 1.866.914.2567 – Atlanta Georgia

Inventory shrinkage is caused by more than just merchandise walking out of your business’s doors without being purchased.  It is all unaccounted for merchandise or assets, and it can occur in a variety of different ways.

To understand inventory shrinkage is to understand its definition.  According to Businessdictionary.com, it is material or goods lost through deterioration, obsolescence, pilferage, theft and/or waste.  More simply, it is lost profit for a business if allowed to be out of control.

Shrinkage in a retail environment is the difference between what a business’s books say should be in stock, and what is actually in stock.  The physical inventory is less than what records show should be present.  Some shrink is probably because of theft, both customer and employee, but errors in invoicing can also be a factor.  Vendor dishonesty is an additional contributor to shrink.

Reducing loss of inventory allows a business to be more profitable.  Implementing a loss prevention program is a wise decision for a business, in order to reduce inventory shrinkage .  Having a professional analyze causes of shrink within your organization and develop customized procedures is one way to combat this loss.

A business needs its inventory in order to have its merchandise available to its customers.  Maximizing profits and reducing inventory shrinkage is not impossible and can definitely be achieved.

For more information contact us: inventory shrinkage or call 1.866.914.2567 – Atlanta.