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
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
Advice on how to prevent theft comes from many different avenues. A manager tells his boss how he thinks theft can be prevented. A store cashier tells their manager how to prevent theft.
Preventing theft seems like an easy task. Lots of new retailers make this mistake. Preventing theft is not an easy task. Many inexperienced retailers look to anti-theft devices to secure merchandise without investigating the true costs of these devices. Locking peg hooks, locked glass cabinets, cabling systems and others are all great theft preventers, however, they also prevent sales and profit if you don’t have the employee hours to properly staff and respond to these secured items. Customers don’t want to wait around while the two employees in the store ringing on the register finish. They want the merchandise now!
To prevent theft , we have to look at the main causes, customers and employees. As most loss prevention professionals will tell you, employee theft causes more loss than customer theft. This is widely true with the exception being inner city stores with high customer foot traffic. These stores tend to see more customer theft than employee theft. I work for a company with just that problem. The regular customer from the low-income area the store is located, enters the store daily and “steals” his regular provisions. Whether its beer, liquor, razors or other high value merchandise, he takes it. We also get the organized crime or “booster teams” that work these stores. Taking merchandise with a high street resale value like razors, liquor, baby formulas and other items, these boosters quickly resell them to other vendors.
Issues like these need professional help. Loss Prevention professionals can help prevent theft . Local police departments are overwhelmed with work and don’t really have the time or resources to focus on issues of retail theft.
If your store is having theft issues and you are looking to prevent it, my recommendations… higher a loss prevention agent.
For more information on preventing theft, contact use at prevent theft or call 1.866.914.2567 – Atlanta
The best way to battle inventory shrinkage or inventory loss is to prevent theft. All businesses experience loss or “shrink” of some kind, retailers are especially prone to this plague since they battle not only employee theft but also theft due to shoplifting and organized retail crime.
Let’s look at some tips to help prevent theft from occurring in the first place. Firstly there should be written policies and procedures that are designed to control losses and prevent them. For example in a retail environment; retailers who are good at controlling shoplifting will always greet customers when they enter the store and be sure to get eye contact. This eye contact is proven to stop shoplifting in the impulsive and amateur shoplifters because they feel they have been identified. This also sends a message that you are paying attention. Apparel and accessory retailers will also pay attention to what the shopper is wearing on the way in and be sure that is what they are wearing on the way out. One way to do a good job of this is to zone the staff in areas to help reduce the amount of traffic any particular employee has to track.
Another way to prevent theft is to install technology that will deter shoplifters and reduce inventory shrinkage. Such as Checkpoint Systems electronic article surveillance (EAS) systems. These systems involve antennas installed at entry and exit doors that pick up sensors placed on merchandise. If the tagged merchandise gets to the antennas an alarm will sound and lights will flash alerting staff to the act. Staff that are well trained in how to maximize the use of Checkpoint Systems technology have been proven to cut inventory loss by over 50%.
For more info visit: prevent theft or call Loss Prevention Systems, Inc. at 1-866-914-2567
Business owners have to find a way to prevent theft within their businesses. The more theft and inventory shrinkage a business experiences, the less profit it will achieve. Utilizing various loss prevention techniques will be very profitable in the long run.
Employees need to be taught to provide good customer service to all customers, but especially to those that may be acting suspiciously. The one thing a potential shoplifter does not want is attention, so employees need to make sure they provide plenty of it if they suspect theft. Employees also must keep their eyes up while working in their areas, watching for suspicious activity. Alert employees can also be a strong theft deterrent.
Another strategy to prevent theft is proper controls. This protects the business’s assets from not only the customer, but also from the employees. Controls can be secured keys for locked cases and doors, key check out and log procedures, changing room monitoring – any type of consistent intervention to prevent the opportunity for a theft to occur.
Additionally, a business owner can prevent theft by looking at his sales floor the way a shoplifter may view it. Where is a good place to conceal merchandise, where an employee will not see me? Is there a corner where the cameras are not facing? Is there a tall rack or shelf that I can hide behind? Where can I see employee’s but where they cannot see me? Is there no one working near the restrooms so I can just take merchandise in there to steal? When a business owner thinks like a thief, he or she will be able to prevent theft in the business by taking away the opportunity to steal.
For more information contact us: prevent theft or call 1.866.914.2567.
The top three sources of retail shrinkage according to the holy grail of the studies (The annual University of Florida’s National Retail Security Survey) are, in order greatest to least, employee theft, shoplifting and administrative and paperwork error.
Most smaller to mid sized retailers, usually ten locations or less, typically would say they believe shoplifting to be their number one source of inventory shrinkage. They initially respond with “I trust my people, they’ve been with me for …” in defense of their people. The UF survey shows that 43% of all retail shrinkage is due to employee theft. This accounts for $15.5 billion in annual inventory loss. This makes employee theft the single largest form of larceny in the US, no other form of larceny costs Americans more money.
The second largest form of retail inventory shrinkage is through shoplifting. Shoplifting accounts for 36% of total retail inventory loss totally $13 billion in a single year. There is a staggering rise in organized retail crime (ORC) that is potentially underestimated and can involve employee collusion.
Thirdly administrative and paperwork errors account for 15% of annual retail inventory shrinkage. Topping this list is the furniture group at 45% of all inventory loss due to paperwork and administrative error with the shoes group at the bottom of the list at 7.5%.
The best way to solve these problems is to prevent theft from occurring. Identifying best practices of operation and incorporating installed loss prevention security will prevent theft and inventory shrinkage and boost bottom line profits.
To learn more visit: inventory shrinkage solutions
To prevent theft is a main staple of the loss prevention world. Yes there are other areas of inventory loss such as paperwork errors and they are important. However, it is the threat of theft that has to be foremost on a business professionals mind. What good is it to have sales and loose all the profits to theft? You can have robust sales and be loosing money if it is being stolen out from under you.
Think of it this way, if you have a 2% profit margin and $100 is stolen from you are you simply out $100? NO, you have lost $5000.00 ($100/.02). That means you will have to sell an additional $5000 to BREAK EVEN on a $100 loss. Depending on your business that could be the total sales for an hour, day or a week. Also, keep in mind that you will not survive long in business with these kinds of losses.
So let’s prevent theft. It’s cheaper and there is a return on investment (ROI). If you are a retail store and you do not have a particular item in stock because they are stolen frequently then your legitimate customers can’t buy them so they go down the street to someone else who has them. Oh, and that same customer also purchases everything else they need at your competitor simply because it is easier. After a while they stop coming into your store. Always look at theft prevention as an ROI.
If you have a wholesale or warehouse environment the same thing applies. If you do not have the goods to ship then your customers will go elsewhere. Prevent theft to begin with and your profits will climb. The great thing about this is that it does not involve adding any new customers. You are simply keeping the money you should be earning on the bottom line.
One other thing to keep in mind. If you don’t think you have a theft problem, “it can’t happen to me”, “my people wouldn’t do that to me” or any other thought like this then you probably have a bigger problem than most since you are ignoring it.
For more information: prevent theft or call 1.866.914.2567
I heard a store manager once say that creating some “pad” to cover his inventory loss is a good thing. It covers losses like shoplifting, employee theft, vendor fraud, paperwork errors and the like. I remember looking at him and saying “Wouldn’t it be easier to just run your store properly?” This person was in charge of a multi-million dollar operation. His “old school” way of doing things was to cover up losses, get his bonus and not worry about the company’s profits. We terminated him shortly after he made these statements, which occurred during an inventory and inventory shrinkage investigation. All of that padding he had done came out in a physical inventory that he was not allowed to control.
Inventory shrinkage control is not rocket science. It is very simple. If you have a theft problem such as shoplifting or employee theft FIX the problem, don’t bury it to come out later. To prevent theft is much simpler and cost effective. Take shoplifting for example. Employees should be trained to keep an eye on what inventory loss they are seeing in their normal duties. If a particular item is suspected of being a high theft problem start with doing cycle counts. Count that item on a scheduled basis. This could be daily, weekly or monthly. If it is found to be causing inventory shrinkage then take action.
This could mean moving the item to a spot more visible to store staff. Or the items may need to be tagged with your Checkpoint EAS inventory control tags. Of course you always want to consider the normal store environment issues such as is there enough lighting (shoplifters love dark areas), are your shelving units stacked so high that store staff cannot see well, are there dark hidden corners and so on.
The point is treat the illness not the symptoms! And don’t wait; controlling inventory loss is not a part time endeavor. It has to be an ongoing process.
For more information: inventory loss or call 1.866.914.2567
Many retailers are aware that if they can prevent theft they will increase profit margin. Inventory shrinkage figures into operating cost so reducing inventory loss will increase profits and you may be surprised to know that reducing inventory shrinkage will also increase sales.
Price Waterhouse Coopers recently studied a supermarket chain and tracked 98 product sku’s. They measured inventory shrinkage on those products for four weeks to ge a baseline. A Checkpoint Security System was installed as a method to prevent theft of merchandise. The Checkpoint Security system included pedestal antennas at entry exit ways that react to tags that were placed on the 98 sku’s that were measured in the study for ten weeks. What they found was surprising. Not only did they record a 69.79% reduction in inventory shrinkage but also realized an increase in sales of 9.2%!
A conclusion cam be drawn that if you prevent theft in retail you will sell more product…and it is because there is more product available for sale. Keeping product on the shelf available for good paying customers is critical and this study verifies the thought.
There are many ways retailers can prevent theft and there are many types of theft in retail. This study focused on shoplifting which is mostly incomming traffic but could involve some emplyee theft.
To explore more about this topic visit prevent theft
Using security tags on merchandise will prevent theft and boost net profit margins by as much as 10%. It is simple math, the less product that is lost to shoplifting and employee theft, the less the cost of those losses effect net profits. To prevent theft may be the most efficient way for retailers to make more money without having to sell more product.
Let’s face it, today’s economy is challenging to just about everyone and raising prices to make up for lost profits just doesn’t make sense. Consumer demand is lower and retail prices are falling due to the mega retailers’ buying power driving the market down.
For example, three out of six of the top retail theft targets (according to the National Retail Security Survey) are the clothing segments: women’s, men’s and children’s. So clothing retailers who keep what they have on the racks and shelves through tactics to prevent theft will reduce losses AND increase profits.
Security tags on merchandise are an instant visual deterrent to shoplifters. They can only be removed with a specific device at the cash out station. Checkpoint Security Systems offers tags in a variety of shapes and sizes both in “hard tag” or “soft tag” varieties.
Checkpoint soft tags are stickers which are called “labels” with a very aggressive adhesive on the back. Theses checkpoint labels are applied to the product’s packaging, hidden in the product somewhere or even sewn in place totally out of sight. Checkpoint hard tags are a dense plastic type of material held on to the clothing with a pin or a steel string.
Click here to learn more: prevent theft