Many companies do not understand the true impact of inventory shrinkage or loss. For example: If your company’s inventory shrinkage this year is $100,000, that’s $274 in shrinkage every day.
Is that the total impact on the bottom line?
Consider this: For your organization to simply recover or break even on a $100,000 inventory shrinkage or loss, you would have to sell an additional $13,700 every day! ($274 divided by .02% profit margin) This is on top of your normal sales.
Think about this…how many more items would you have to order, receive, count, mark, prepare paperwork for, stock, and finally sell just to produce these extra sales to break even?
Add to this the fact that inventory shrinkage really cannot be recovered. You then begin to understand why one third of US business failures are blamed on corporate theft.
The obvious solution is to prevent the theft, errors and abuse that cause inventory shrinkage and loss in the first place.
In my 30 plus year career in loss prevention I have had the duty to conduct employee theft investigations on over 2300 employees. These investigations have involved employees of all ages, races and positions from entry level to upper management and partners.
Most employee theft investigations must be conducted as a result of management failing to follow their own policy, procedure or even common sense. I have also found that in many cases management will fail to learn from previous employee theft investigations. Not learning from history will make you destine to repeat it.
Get your policy manual out, dust it off, review it and update it. Then make sure that everyone else know and understands that they must follow it. This will be work in the beginning but will make the life of a manager easier in the long run because they do not have to keep reinventing the wheel. You will also find that you will reduce the number of employee theft investigations that need to take place. The rules are there for a reason: It happened before and the company lost money. That’s why there is a policy for it.
Shoplifters employ a number of approaches when stealing clothing in a retail store. Clothing security should be a multi-layered approach. The front line is always customer service but the determined or organized shoplifter(s) will use tactics such as diversion and deception to thwart your clothing security customer service efforts.
Labor is one of the Retailers largest expenses. Because of this medium to smaller Retailers find it is not cost effective to hire LP or Security Store Investigators to seek out and apprehend Shoplifters in clothing security or in the protection of other retail goods.
To counter this a Retailer must use devices such as a Checkpoint Electronic Article Surveillance System (EAS), ink tags or physical security methods.
Since most robberies take only one or two minutes to complete, it is quite important that you take the time to learn what you and your employees should do in the case of being robbed. The priority is always the safety of the employees and customers. You should cooperate completely and observe every detail of the situation.
If your store is robbed, remember:
·Do not resist, this is not the time for heroics.
·Keep it short; the sooner it is over, the better.
·Do give up the money demanded.
·Do not argue.
·Don’t overreact; don’t attempt to grab a weapon or call for help.
·Make every effort to remain calm. Set the example for the other employees.
·Do not make any sudden movements. Warn the robber of any noises that may surprise him (ex: the alarm on the stock room door or safe).
·Expect strong or foul language. Expect to be told to lie on the floor.
·Be alert. Try to remember details of the robber’s appearance, clothing, speech, etc.
·Keep any holdup note, but don’t allow people to handle it.
·If possible, watch the robber’s method and direction of escape.
After a robbery:
·Call the Police and Security (if available).
·Close off the area where the robbery took place.
·Write down everything you can recall and provide the Police with this information.
·Give the Police any hold-up note received.
·Cooperate fully with the Police.
Whatever you do, remember that lives are much more important than any amount of money.
