Inventory Control Includes An Effective Shortage Action Plan Focused On Operational Issues AND Retail Theft Prevention Strategies

Checkpoint System- 4                                                                                                        WC Blog 423
Retail Theft Prevention-4
Inventory Control Includes An Effective Shortage Action Plan Focused On Operational Issues AND Retail Theft Prevention Strategies
     I’ve been doing a lot of cashiering recently in my part-time job. Normally I am a “Sales Consultant” on the selling floor assisting customers with finding the items they need and suggesting how to better find what will serve their purposes. Now I have been in retail a LONG time, a little over 27 years as a matter-of-fact. Most of that time was in Retail Loss Prevention but I have been a Logistics Manager and a Manager on Duty so the cash register is not unfamiliar to me. Because of my L.P. experience merchandise shortage and inventory control has always been a major focus for me and I look at processes and procedures with a critical eye. One of the things that has really struck home as I have cashiered and worked the salesfloor is the amount of merchandise that seems to be “missing”. The merchandise that can’t be accounted for does not seem to be due to a lack of retail theft prevention measures, it seems to be due to process errors. There are times when a lack of procedures and inventory control can be as harmful to a store’s profit line as shoplifters. While a Checkpoint System is great at preventing theft, it takes a total shortage reduction plan to address operational issues too.
     When I discuss Retail Theft Prevention what I am mean is the use of a Checkpoint System to stop thieves from cleaning out a store of merchandise. A system includes electronic article surveillance (EAS) pedestals that detect EAS tagged merchandise and sound an alarm when protected products are carried too close to them. Needless to say a system also incorporates the tags which come in a wide range of products from soft labels to hard tags and wraps. It will also include deactivation pads to de-tune soft tags and detachment keys to remove hard tags for re-use on new merchandise. 
     When I am talking about operational issues affecting inventory control and shortage I am referencing those things which are not theft related but are generally related to process mistakes. For example, when merchandise in a shopping cart is overlooked by the customer and the cashier that is considered an operational error contributing to store shortage. This is not about those situations of intentional passing or stealing. Another example is when a case pack of merchandise is not properly separated before being stocked on the sales floor and it gets rung up as a single unit rather than multiple units.
Recently I had a large quantity of school folders that appeared to be “missing”, several hundred as a matter of fact. These are inexpensive folders only costing a few cents each so we are not talking about large amounts of money. I do not believe this is a theft issue. What I have noticed while cashiering is that if I don’t scan each individual item as I am ringing a sale I am catching two sku’s mixed together because the folders are so similar. One sku has prongs and one has no prongs. I can see that if our cashiers are using the quantity key instead of individually scanning each and every folder in a purchase there is a strong probability of throwing on-hand counts of each type of sku off. This example is one that is not extremely costly but if this is happening with more expensive purchases, let’s say multiple reams of paper or mailing labels for business purchases, store inventory and shortage numbers can be significantly impacted.
    You can see that retail theft prevention strategies will not be too useful in this situation but a good shortage action plan that includes operational aspects to it can be. A Checkpoint System can be helpful to stop one operational shortage issue and that would be accidental missed merchandise on the bottom of a buggy. Tagged product that is legitimately overlooked by the cashier and customer will sound the EAS pedestals and the customer will return and pay for the item or decide they don’t have the time to purchase it if they are in a hurry.
     Inventory control is critical if a store is to remain profitable. Training cashiers on the proper ways to checkout merchandise and look for bottom of basket merchandise is important. While a Checkpoint System is primarily for retail theft prevention it does have a role in operational shortage if you ensure you tag all of the merchandise you carry, not just the expensive ones.
Need information on a Checkpoint System? Give us a call at 1.770.426.0547 now

I’ve been doing a lot of cashiering recently in my part-time job. Normally I am a “Sales Consultant” on the selling floor assisting customers with finding the items they need and suggesting how to better find what will serve their purposes. Now I have been in retail a LONG time, a little over 27 years as a matter-of-fact. Most of that time was in Retail Loss Prevention but I have been a Logistics Manager and a Manager on Duty so the cash register is not unfamiliar to me. Because of my L.P. experience merchandise shortage and inventory control has always been a major focus for me and I look at processes and procedures with a critical eye. One of the things that has really struck home as I have cashiered and worked the salesfloor is the amount of merchandise that seems to be “missing”. The merchandise that can’t be accounted for does not seem to be due to a lack of retail theft prevention measures, it seems to be due to process errors. There are times when a lack of procedures and inventory control can be as harmful to a store’s profit line as shoplifters. While a Checkpoint System is great at preventing theft, it takes a total shortage reduction plan to address operational issues too.
     

When I discuss Retail Theft Prevention what I am mean is the use of a Checkpoint System to stop thieves from cleaning out a store of merchandise. A system includes electronic article surveillance (EAS) pedestals that detect EAS tagged merchandise and sound an alarm when protected products are carried too close to them. Needless to say a system also incorporates the tags which come in a wide range of products from soft labels to hard tags and wraps. It will also include deactivation pads to de-tune soft tags and detachment keys to remove hard tags for re-use on new merchandise. 
     

When I am talking about operational issues affecting inventory control and shortage I am referencing those things which are not theft related but are generally related to process mistakes. For example, when merchandise in a shopping cart is overlooked by the customer and the cashier that is considered an operational error contributing to store shortage. This is not about those situations of intentional passing or stealing. Another example is when a case pack of merchandise is not properly separated before being stocked on the sales floor and it gets rung up as a single unit rather than multiple units.

 

Recently I had a large quantity of school folders that appeared to be “missing”, several hundred as a matter of fact. These are inexpensive folders only costing a few cents each so we are not talking about large amounts of money. I do not believe this is a theft issue. What I have noticed while cashiering is that if I don’t scan each individual item as I am ringing a sale I am catching two sku’s mixed together because the folders are so similar. One sku has prongs and one has no prongs. I can see that if our cashiers are using the quantity key instead of individually scanning each and every folder in a purchase there is a strong probability of throwing on-hand counts of each type of sku off. This example is one that is not extremely costly but if this is happening with more expensive purchases, let’s say multiple reams of paper or mailing labels for business purchases, store inventory and shortage numbers can be significantly impacted.
   

You can see that retail theft prevention strategies will not be too useful in this situation but a good shortage action plan that includes operational aspects to it can be. A Checkpoint System can be helpful to stop one operational shortage issue and that would be accidental missed merchandise on the bottom of a buggy. Tagged product that is legitimately overlooked by the cashier and customer will sound the EAS pedestals and the customer will return and pay for the item or decide they don’t have the time to purchase it if they are in a hurry.
     

Inventory control is critical if a store is to remain profitable. Training cashiers on the proper ways to checkout merchandise and look for bottom of basket merchandise is important. While a Checkpoint System is primarily for retail theft prevention it does have a role in operational shortage if you ensure you tag all of the merchandise you carry, not just the expensive ones.

 

Need information on a Checkpoint System? Give us a call at 1.770.426.0547 now