Stop shoplifting-3 WC Blog 689
Sensormatic System – 3
Sensormatic Systems Remove Opportunity For Theft Part 2
In the first article we discussed how removing opportunity can stop shoplifting and employee theft. The article came about because of a story I read from Loss Prevention Magazine in which the author discussed this very topic. He made valid arguments about the expense of analytical data to try to determine methods for addressing theft and tracking potential opportunities for theft to occur. He then focused on one strategy for internal theft reduction which I did not take any issue with. I encourage you to read Part 1 of this series so you can find the story I am referencing, it could prove useful to business owners. I then discussed my perspective on data and analytics and how it can become a time consuming task to review all of the information and then make it actionable. Opportunity for employee theft starts in the hiring process and then in the building design and finally how operations of the store work. The author of the article I read would probably be in agreement with me about the employment part but he feels that the labor pool is becoming smaller to choose from with the economy improving.
The first solution to stop shoplifting and employee theft I proposed in Part 1 was the installation of new Sensormatic systems in stores. Not only do new electronic article surveillance towers at the entrance and exits of a store let potential thieves know you are serious about crime, they also let store workers know when an attempted theft is taking place. They don’t discriminate between employees and customers. Anyone trying to take merchandise out that is tagged will activate an alarm. These systems remove opportunity one of the key elements necessary for criminals who want to steal. In Part 1 I also told readers that the best source to go to for Sensormatic systems is Loss Prevention Systems, Inc. (LPSI). LPSI is a company that has been helping retailers with shrink management and theft reduction for over 30 years. They are well equipped to give advice on anti-theft equipment and other methods to curb theft. This leads me to another issue mentioned in the Loss Prevention Magazine article the writer’s argument about hiring being a factor that employers have little control over in terms of opportunity.
I don’t agree that as a “labor market continues to tighten there is little opportunity for retailers to take serious aim at losses from employee theft through more selective hiring” as posed by that author. I believe that the use of pre-employment screening and drug screening of applicants is still a viable option for retail owners and managers. Both of these tools are offered by LPSI as part of a larger strategy to reduce theft and shortage. A pre-employment screening is an opportunity to dig into verifying what an applicant has put on an application or in some cases finding out what was left off an application. There are a number of benefits in conducting background checks but the most important thing to know is it can reduce your chances of hiring criminals. An applicant drug screening helps minimize the chance of hiring a person who uses illegal substances who may take an opportunity to steal from your store to satisfy an addiction. Failing to screen for both of these opens an unnecessary opportunity for a crook to gain employment with your business. Combine the three, Sensormatic Systems, pre-employment background checks and drug screening and you have the makings of a truly impactful anti-theft strategy.
Give a thief an opportunity and he or she will take it and run. Whether you are trying to stop shoplifting or internal theft the tools are available to you to keep it out of your shop. LPSI has those tools and can also assess your business for you to see if there are any other opportunities that have been overlooked. Hire the right people, get the right equipment and hear the right advice and you will create new opportunities to grow your business.
Get more information on Sensormatic systems, contact us or call 1.770.426.0547 today.
In the first article we discussed how removing opportunity can stop shoplifting and employee theft. The article came about because of a story I read from Loss Prevention Magazine in which the author discussed this very topic. He made valid arguments about the expense of analytical data to try to determine methods for addressing theft and tracking potential opportunities for theft to occur. He then focused on one strategy for internal theft reduction which I did not take any issue with. I encourage you to read Part 1 of this series so you can find the story I am referencing, it could prove useful to business owners. I then discussed my perspective on data and analytics and how it can become a time consuming task to review all of the information and then make it actionable. Opportunity for employee theft starts in the hiring process and then in the building design and finally how operations of the store work. The author of the article I read would probably be in agreement with me about the employment part but he feels that the labor pool is becoming smaller to choose from with the economy improving.
The first solution to stop shoplifting and employee theft I proposed in Part 1 was the installation of new Sensormatic systems in stores. Not only do new electronic article surveillance towers at the entrance and exits of a store let potential thieves know you are serious about crime, they also let store workers know when an attempted theft is taking place. They don’t discriminate between employees and customers. Anyone trying to take merchandise out that is tagged will activate an alarm. These systems remove opportunity one of the key elements necessary for criminals who want to steal. In Part 1 I also told readers that the best source to go to for Sensormatic systems is Loss Prevention Systems, Inc. (LPSI). LPSI is a company that has been helping retailers with shrink management and theft reduction for over 30 years. They are well equipped to give advice on anti-theft equipment and other methods to curb theft. This leads me to another issue mentioned in the Loss Prevention Magazine article the writer’s argument about hiring being a factor that employers have little control over in terms of opportunity.
I don’t agree that as a “labor market continues to tighten there is little opportunity for retailers to take serious aim at losses from employee theft through more selective hiring” as posed by that author. I believe that the use of pre-employment screening and drug screening of applicants is still a viable option for retail owners and managers. Both of these tools are offered by LPSI as part of a larger strategy to reduce theft and shortage. A pre-employment screening is an opportunity to dig into verifying what an applicant has put on an application or in some cases finding out what was left off an application. There are a number of benefits in conducting background checks but the most important thing to know is it can reduce your chances of hiring criminals. An applicant drug screening helps minimize the chance of hiring a person who uses illegal substances who may take an opportunity to steal from your store to satisfy an addiction. Failing to screen for both of these opens an unnecessary opportunity for a crook to gain employment with your business. Combine the three, Sensormatic Systems, pre-employment background checks and drug screening and you have the makings of a truly impactful anti-theft strategy.
Give a thief an opportunity and he or she will take it and run. Whether you are trying to stop shoplifting or internal theft the tools are available to you to keep it out of your shop. LPSI has those tools and can also assess your business for you to see if there are any other opportunities that have been overlooked. Hire the right people, get the right equipment and hear the right advice and you will create new opportunities to grow your business.
Get more information on Sensormatic systems, contact us or call 1.770.426.0547 today.
Sensormatic Systems-3 WC Blog 688
Stop Shoplifting-3
Electronic Article Surveillance-3
Sensormatic Systems Remove Opportunity For Theft Part 1
I was reading an interesting article about how the removal of opportunity can decrease theft and I was in agreement with the writer but I wanted him to include how Sensormatic systems could be helpful also. The article, “Reduce Employee Theft by Removing Opportunity”, by Garett Seivold, in Loss Prevention Magazine, Oct 4, 2018, was spot on with the suggestions he made. He discusses the options of analytical tools that are available to retailers but points out “…a hefty price tag is frequently attached.” Mr. Seivold also touches on the fact that the labor market is getting “tighter” and this makes it more difficult for employers to be selective in hiring. The article then focuses on one aspect of opportunity that employers can improve on to reduce employee theft, providing employees with a secure locker system for storing personal belongings. The locker system he references has clear doors which allow managers to see what is in a locker but still gives the employee individual security. I like this approach to internal theft but I am going to add my two-cents to the conversation. Let me be clear, Mr. Seivold does not seem to be arguing against retail ant-theft devices and electronic article surveillance so I don’t want to leave that impression. I am only going to add that owners can prevent employee theft AND stop shoplifting by including Sensormatic systems in a store.
I agree that analytical tools can be expensive and to be honest, if a store manager is not careful in working with data it can become very time consuming. My take on Loss Prevention comes from nearly 17 years of retail L.P. experience. I have also been a Freight Flow Manager and I have seen the way data overload can become overwhelming and basic operational management (whether it is store or L.P. operations) become secondary. The impact can be counterproductive though the idea behind all of the reporting tools was supposed to improve efficiency. One of the ways to address the problem of theft is to focus on prevention tactics. Absolutely removing opportunity is an important part of a sound strategy. Another component that should not be overlooked is electronic article surveillance as an affordable and proven means of deterring employee theft and to stop shoplifting at the same time. A quality security pedestal at the entrance and exits of stores and a program of thoroughly tagging all merchandise in a store goes a long way in shortage reduction. By using a combination of Sensormatic labels and hard tags (depending on the merchandise being protected) crooks will find it difficult to steal without a significant risk of being caught. That risk is the deterrent that impacts shoplifters and dishonest employees, no one WANTS to be caught and be sent to jail.
I said that Sensormatic systems are an affordable option for business owners. They are affordable and I am not talking about second-hand or refurbished equipment. If you take the time to go to Loss Prevention Systems, Inc.’s website you can find a free ROI Calculator that can calculate for you not only how much you can reduce your shrinkage you can see how short a time frame a new system would pay for itself in shrinkage reduction. There are additional upgrades that can enhance the way you display and sell merchandise but a basic system with electronic article surveillance tags is very affordable.
Opportunity is a requirement for criminals to be able to steal from stores, Mr. Seivold is correct. The ability to identify those opportunities and knowing how to eliminate them is another matter altogether. In Part 2 we will explore some additional ways to reduce and eliminate opportunity for your workers to steal from you and we will also stop shoplifting along the way.
For more information on Sensormatic systems contact us or call 1.770.426.0547 today
I was reading an interesting article about how the removal of opportunity can decrease theft and I was in agreement with the writer but I wanted him to include how Sensormatic systems could be helpful also. The article, “Reduce Employee Theft by Removing Opportunity”, by Garett Seivold, in Loss Prevention Magazine, Oct 4, 2018, was spot on with the suggestions he made. He discusses the options of analytical tools that are available to retailers but points out “…a hefty price tag is frequently attached.” Mr. Seivold also touches on the fact that the labor market is getting “tighter” and this makes it more difficult for employers to be selective in hiring. The article then focuses on one aspect of opportunity that employers can improve on to reduce employee theft, providing employees with a secure locker system for storing personal belongings. The locker system he references has clear doors which allow managers to see what is in a locker but still gives the employee individual security. I like this approach to internal theft but I am going to add my two-cents to the conversation. Let me be clear, Mr. Seivold does not seem to be arguing against retail ant-theft devices and electronic article surveillance so I don’t want to leave that impression. I am only going to add that owners can prevent employee theft AND stop shoplifting by including Sensormatic systems in a store.
I agree that analytical tools can be expensive and to be honest, if a store manager is not careful in working with data it can become very time consuming. My take on Loss Prevention comes from nearly 17 years of retail L.P. experience. I have also been a Freight Flow Manager and I have seen the way data overload can become overwhelming and basic operational management (whether it is store or L.P. operations) become secondary. The impact can be counterproductive though the idea behind all of the reporting tools was supposed to improve efficiency. One of the ways to address the problem of theft is to focus on prevention tactics. Absolutely removing opportunity is an important part of a sound strategy. Another component that should not be overlooked is electronic article surveillance as an affordable and proven means of deterring employee theft and to stop shoplifting at the same time. A quality security pedestal at the entrance and exits of stores and a program of thoroughly tagging all merchandise in a store goes a long way in shortage reduction. By using a combination of Sensormatic labels and hard tags (depending on the merchandise being protected) crooks will find it difficult to steal without a significant risk of being caught. That risk is the deterrent that impacts shoplifters and dishonest employees, no one WANTS to be caught and be sent to jail.
I said that Sensormatic systems are an affordable option for business owners. They are affordable and I am not talking about second-hand or refurbished equipment. If you take the time to go to Loss Prevention Systems, Inc.’s website you can find a free ROI Calculator that can calculate for you not only how much you can reduce your shrinkage you can see how short a time frame a new system would pay for itself in shrinkage reduction. There are additional upgrades that can enhance the way you display and sell merchandise but a basic system with electronic article surveillance tags is very affordable.
Opportunity is a requirement for criminals to be able to steal from stores, Mr. Seivold is correct. The ability to identify those opportunities and knowing how to eliminate them is another matter altogether. In Part 2 we will explore some additional ways to reduce and eliminate opportunity for your workers to steal from you and we will also stop shoplifting along the way.
For more information on Sensormatic systems contact us or call 1.770.426.0547 today
Stop shoplifting – 3 wc blog 698
Electronic Article Surveillance – 3
Subscribe To New Retail Ideas But Don’t Give Up Electronic Article Surveillance Security In The Process
I am a strong proponent of retailers being adaptable and trying new things to increase sales and as I see these efforts I also consider whether it will slow or stop shoplifting or internal theft. One trend I have looked at is the online ordering and shipping phenomenon. I am referring to retail orders being sent directly to stores where the order is filled and shipped out or gathered and ready for a customer pick-up. Another trend that I am seeing is retail stores getting customers signed up for subscriptions or auto refills. For the customer these programs make it easy to sign up for auto replenishment of office supplies or ink for printers. The retailer waives shipping fees and the customer sets up a reorder/replenishment schedule. As a sales strategy I think it is a smart method to ensure your customers will continue being supplied by your store. For the customer it is convenient and can save time on making a trip to the store that they may prefer not to make. This can be valuable to the small business owner who can focus on running the business and worry less about running out of paper, pencils, file folders, ink, etc. I would give one word of caution to those business owners thinking this would be a great way to reduce electronic article surveillance tagging, don’t do it. Small retailers that do something like this will still need to use security tags on merchandise.
A question some may ask is, “If my store is able to cater more to auto refill sales can’t I reduce my inventory to a certain extent and worry less about the need to stop shoplifting?” The answer is no, you should not reduce your inventory or your electronic article surveillance tagging. Let’s be clear if you open your doors to the public your store is susceptible to shoplifting. The only difference you should see if subscriptions are to be a part of your sales strategy is an increase in sales. I say this out of concern an owner might consider turning their store(s) into a showroom type of retailer. I know of one retailer that used this business model many years ago and they could not survive in that time and place. The idea was customers would go in and browse, and many items were displayed in showcases. If you decided you wanted something it was either ordered for you then delivered to the store for pick up OR it was in stock and the clerk had to go to a stockroom and pick the item. The mode of operation was different and worked for a time but the retailer did eventually go out of business. Don’t try to go a similar route.
There is a drawback I see to the auto reorder process for stores. The convenience may ensure a certain level of consistency in customer purchases but the subscriptions aren’t a guarantee of sales or orders. Patrons are able to decline a delivery before it is shipped out if they don’t feel they are ready for the merchandise yet. For larger companies this may not be too big an issue since many of their subscriptions will be sent from warehouses anyways. For the small store that product is going to have to come out of the store. If you are having to order to maintain product levels to meet subscriptions it could present a problem of storage space and stock levels. If you have the on-hand units so you are ready for that subscription and it is cancelled it is going to fill up stockroom space. You may also have to fill your floor with that product which means you need to be ready to protect it with electronic article surveillance labels and tags. One final thing to think about with subscription orders is that those customers are not walking into your store(s). You lose the opportunity to engage your customers and the personal touch that can build a great relationship. You also miss the opportunity for add-on sales and impulse buys.
Be ready to look at new trends and determine if they might work for your business model. If you can fit subscription sales into your store plan try it out and see if it works. Be willing to acknowledge if it doesn’t and move on to another idea. As you try new ideas don’t lose sight of theft and shortage concerns. Partner with Loss Prevention Systems, Inc. as you consider new options and get their analysis of risks you may encounter. They can help you stop shoplifting, employee theft and even operational issues that may result. Take calculated risks that don’t increase losses.
Get more information on how to stop shoplifting. Contact us or call 1.770.426.0547 today.
I am a strong proponent of retailers being adaptable and trying new things to increase sales and as I see these efforts I also consider whether it will slow or stop shoplifting or internal theft. One trend I have looked at is the online ordering and shipping phenomenon. I am referring to retail orders being sent directly to stores where the order is filled and shipped out or gathered and ready for a customer pick-up. Another trend that I am seeing is retail stores getting customers signed up for subscriptions or auto refills. For the customer these programs make it easy to sign up for auto replenishment of office supplies or ink for printers. The retailer waives shipping fees and the customer sets up a reorder/replenishment schedule. As a sales strategy I think it is a smart method to ensure your customers will continue being supplied by your store. For the customer it is convenient and can save time on making a trip to the store that they may prefer not to make. This can be valuable to the small business owner who can focus on running the business and worry less about running out of paper, pencils, file folders, ink, etc. I would give one word of caution to those business owners thinking this would be a great way to reduce electronic article surveillance tagging, don’t do it. Small retailers that do something like this will still need to use security tags on merchandise.
A question some may ask is, “If my store is able to cater more to auto refill sales can’t I reduce my inventory to a certain extent and worry less about the need to stop shoplifting?” The answer is no, you should not reduce your inventory or your electronic article surveillance tagging. Let’s be clear if you open your doors to the public your store is susceptible to shoplifting. The only difference you should see if subscriptions are to be a part of your sales strategy is an increase in sales. I say this out of concern an owner might consider turning their store(s) into a showroom type of retailer. I know of one retailer that used this business model many years ago and they could not survive in that time and place. The idea was customers would go in and browse, and many items were displayed in showcases. If you decided you wanted something it was either ordered for you then delivered to the store for pick up OR it was in stock and the clerk had to go to a stockroom and pick the item. The mode of operation was different and worked for a time but the retailer did eventually go out of business. Don’t try to go a similar route.
There is a drawback I see to the auto reorder process for stores. The convenience may ensure a certain level of consistency in customer purchases but the subscriptions aren’t a guarantee of sales or orders. Patrons are able to decline a delivery before it is shipped out if they don’t feel they are ready for the merchandise yet. For larger companies this may not be too big an issue since many of their subscriptions will be sent from warehouses anyways. For the small store that product is going to have to come out of the store. If you are having to order to maintain product levels to meet subscriptions it could present a problem of storage space and stock levels. If you have the on-hand units so you are ready for that subscription and it is cancelled it is going to fill up stockroom space. You may also have to fill your floor with that product which means you need to be ready to protect it with electronic article surveillance labels and tags. One final thing to think about with subscription orders is that those customers are not walking into your store(s). You lose the opportunity to engage your customers and the personal touch that can build a great relationship. You also miss the opportunity for add-on sales and impulse buys.
Be ready to look at new trends and determine if they might work for your business model. If you can fit subscription sales into your store plan try it out and see if it works. Be willing to acknowledge if it doesn’t and move on to another idea. As you try new ideas don’t lose sight of theft and shortage concerns. Partner with Loss Prevention Systems, Inc. as you consider new options and get their analysis of risks you may encounter. They can help you stop shoplifting, employee theft and even operational issues that may result. Take calculated risks that don’t increase losses.
Get more information on how to stop shoplifting. Contact us or call 1.770.426.0547 today.
Sensormatic Labels-4 WC Blog 687
Stop Shoplifting – 3
When To Use Sensormatic Labels vs. Hard Tags
When is it appropriate to use Sensormatic labels versus a security hard tag on merchandise? This may sound like an odd question but I bring it up because of something I noticed in a major department store the other day. I was helping my wife look for a new purse (not that I was much help, I think I was more there to amuse her) and while she was trying on purses, checking zippers and looking for all of the necessary hiding places she requires of a handbag, I was looking at the security tags being used. Like I said, I don’t think I was much help to her. I noticed that many of the purses had electronic article surveillance labels on the manufacturer’s hang tag. There were a few very expensive bags with hard tags on them. I put on my Loss Prevention Manager hat and began questioning the reasoning for the tagging as it was being done in this store.
Sensormatic labels are great to use to stop shoplifting and the acoustic magnetic labels are easily detected when a thief carries tagged merchandise through an electronic article surveillance tower. It is important for a store owner to remember that the labels may have a strong adhesive but if they are attached to a manufacturer’s hang tag the hang tag can usually be pulled off without any real effort exerted. A hard tag may be a better option in these types of situations. This brings up the question when are Sensormatic labels the appropriate anti-theft device?
Personally, I like the acoustic magnetic labels for smaller, boxed merchandise that is not a high theft or high dollar item. A great place to start is the health and beauty section of a store. Plain toothbrushes, bottles of mouthwash, bottles and boxes of aspirin and other lower price point pain relievers. The Sensormatic HBC Label is designed to protect smaller and thinner cosmetic merchandise items. Store brand products are not as popular among criminals as name brand goods so these tend to be good choices for labels in order to stop shoplifting. Other areas to consider for electronic article surveillance labels can be writing utensils such as pens and pencils, crayons and markers. You might even tag budget cd’s and dvd’s with labels. I do recommend that new release movies, high end pen sets, and other items would be better protected in a Sensormatic Safer anti-theft device.
So while I have mentioned additional items for protecting merchandise available from Sensormatic it has to raise a question among some readers about which products are best for their particular stores. Bill Bregar, Founder of Loss Prevention Systems, Inc. has the answers for retailers of any type of wares. Whether your store is a clothing specialty store, an antique shop or a corner market, Bill and his team can guide you in your efforts to reduce theft and increase profitability. That is what HIS business specializes in and they have been doing it since 1983! Loss Prevention training, stock shortage risk evaluation and action planning, theft investigations and even employee background checks and pre-employment drug screenings are services they offer in addition to Sensormatic systems. Bill can find the right solution to fit your store and you will be amazed at what you can save when you begin to take the right combination of steps to stop shoplifting and cut down employee theft.
Sensormatic labels are a cost effective way to deter criminals from stealing from your store. I have listed many of the items I would recommend them to be used on. When the merchandise is higher priced and a sure target of criminals other Sensormatic devices are in order. But, no matter what it is that you need to protect, Loss Prevention Systems, inc. has the solution.
Sensormatic labels are important and we can help you with them. For more informtation contact us or call 1.770.426.0547 and let’s talk.
When is it appropriate to use Sensormatic labels versus a security hard tag on merchandise? This may sound like an odd question but I bring it up because of something I noticed in a major department store the other day. I was helping my wife look for a new purse (not that I was much help, I think I was more there to amuse her) and while she was trying on purses, checking zippers and looking for all of the necessary hiding places she requires of a handbag, I was looking at the security tags being used. Like I said, I don’t think I was much help to her. I noticed that many of the purses had electronic article surveillance labels on the manufacturer’s hang tag. There were a few very expensive bags with hard tags on them. I put on my Loss Prevention Manager hat and began questioning the reasoning for the tagging as it was being done in this store.
Sensormatic labels are great to use to stop shoplifting and the acoustic magnetic labels are easily detected when a thief carries tagged merchandise through an electronic article surveillance tower. It is important for a store owner to remember that the labels may have a strong adhesive but if they are attached to a manufacturer’s hang tag the hang tag can usually be pulled off without any real effort exerted. A hard tag may be a better option in these types of situations. This brings up the question when are Sensormatic labels the appropriate anti-theft device?
Personally, I like the acoustic magnetic labels for smaller, boxed merchandise that is not a high theft or high dollar item. A great place to start is the health and beauty section of a store. Plain toothbrushes, bottles of mouthwash, bottles and boxes of aspirin and other lower price point pain relievers. The Sensormatic HBC Label is designed to protect smaller and thinner cosmetic merchandise items. Store brand products are not as popular among criminals as name brand goods so these tend to be good choices for labels in order to stop shoplifting. Other areas to consider for electronic article surveillance labels can be writing utensils such as pens and pencils, crayons and markers. You might even tag budget cd’s and dvd’s with labels. I do recommend that new release movies, high end pen sets, and other items would be better protected in a Sensormatic Safer anti-theft device.
So while I have mentioned additional items for protecting merchandise available from Sensormatic it has to raise a question among some readers about which products are best for their particular stores. Bill Bregar, Founder of Loss Prevention Systems, Inc. has the answers for retailers of any type of wares. Whether your store is a clothing specialty store, an antique shop or a corner market, Bill and his team can guide you in your efforts to reduce theft and increase profitability. That is what HIS business specializes in and they have been doing it since 1983! Loss Prevention training, stock shortage risk evaluation and action planning, theft investigations and even employee background checks and pre-employment drug screenings are services they offer in addition to Sensormatic systems. Bill can find the right solution to fit your store and you will be amazed at what you can save when you begin to take the right combination of steps to stop shoplifting and cut down employee theft.
Sensormatic labels are a cost effective way to deter criminals from stealing from your store. I have listed many of the items I would recommend them to be used on. When the merchandise is higher priced and a sure target of criminals other Sensormatic devices are in order. But, no matter what it is that you need to protect, Loss Prevention Systems, inc. has the solution.
Sensormatic labels are important and we can help you with them. For more informtation, contact us or call 1.770.426.0547 and let’s talk.
Sensormatic Systems-3 WC Blog 663
Stop Shoplifting-3
Stop Shoplifting AND Operational Shortages Part 3
In part 1 I discussed the way Sensormatic systems can assist store owners in reducing operational shortage. We have also looked at how they can curb or reduce vendor related merchandise shrinkage. As we finish out this series I want to discuss a few other operational issues that contribute to shortage. It is important to remember that operational shortage is a separate concern from efforts to stop shoplifting and internal theft. These are errors and mistakes in processing and handling merchandise that can be just as costly as theft but may not get the same level of attention as theft does. The reason for this series is that in the past week I have encountered each situation. I have also had to deal with the resulting customer service issues brought about by each problem.
This past week I was assisting a customer in finding tabbed dividers for his child who was preparing for school. The customer found a package he wanted and as he started to place it in his shopping cart I noted that the packaging looked a bit unusual. I asked if I could look at it more closely and he permitted me to do so. It turned out it was a multi-pack of the dividers still in the clear, shipping cellophane wrap. There were approximately 8-10 individual packs still wrapped and could have been unintentionally rung up as a single unit if I had not caught it. In other words rather than selling 8 or 10 packages at roughly $3.00 each (a total of $24-$30) we could have theoretically sold all 8 or 10 units for $3.00. That would have been bad enough. To make matters worse, there were about 10 such packages that had not been properly processed when the merchandise was stocked. Assuming there were 10 units in a package multiplied by 10 packages, the shortage could have been almost $270! Some people are thinking that this would not have happened and the error would have been caught quickly before all of the packages could have been sold. That is not necessarily so. There are people who look for stocking errors and purposely take advantage of them. My customer was not entirely happy about the catch I made but he said he understood. No, it is not the same as trying to stop shoplifting but not addressing these problems can be just as costly if not more so.
Since we are on the topic of operational issues that cannot be prevented by a Sensormatic system let’s discuss compactor security. Does your store have a compactor? If not, how about an outside dumpster? Who is responsible for tossing trash in your business? Do employees throw out their own boxes, packaging, etc.? Does your store keep a lock on the compactor if you have one? If it is locked, do you limit who throws away the garbage and does anyone inspect what is being tossed? As a former Loss Prevention Manager I was actively involved in the operational integrity of the store. I ensured our managers were in compliance with company policies regarding compactor security because the risk of shortage due to carelessness was that great. I would conduct audits of boxes and trash that were waiting to be tossed and I would find merchandise that was overlooked during the freight flow process. There were times I would find merchandise that was to be thrown out for vendor credits and some items had not been processed through reverse logistics. I was reminded of this source of shortage when my daughter, an area manager for another retailer was telling me how an employee had left several boxes of shoes in a box by their compactor waiting for a manager to throw it out. Had she not been careful about what she was throwing in they would have incurred shortage in shoes. It also would have made the store short of that shoe size and affected potential sales had a customer wanted them and they weren’t available. Managers don’t need to stop shoplifting in order to save shortage from happening.
A Sensormatic system can make a huge difference in shortage for store owners willing to invest in them. They are a serious deterrent to shoplifters and dishonest employees and they will identify attempted efforts to steal. They can also curb some operational shortage, though not all of it. That is why it is important to contact Loss Prevention Systems, Inc. for a consultation on how to prevent theft, fraud and shortage for a thorough review of your shrink risks. You will be surprised at how much you can save by spending on Loss Prevention.
Sensormatic systems are important and we can help you with it. Call 1.770.426.0547 and let’s talk.
In part 1 I discussed the way Sensormatic systems can assist store owners in reducing operational shortage. We have also looked at how they can curb or reduce vendor related merchandise shrinkage. As we finish out this series I want to discuss a few other operational issues that contribute to shortage. It is important to remember that operational shortage is a separate concern from efforts to stop shoplifting and internal theft. These are errors and mistakes in processing and handling merchandise that can be just as costly as theft but may not get the same level of attention as theft does. The reason for this series is that in the past week I have encountered each situation. I have also had to deal with the resulting customer service issues brought about by each problem.
This past week I was assisting a customer in finding tabbed dividers for his child who was preparing for school. The customer found a package he wanted and as he started to place it in his shopping cart I noted that the packaging looked a bit unusual. I asked if I could look at it more closely and he permitted me to do so. It turned out it was a multi-pack of the dividers still in the clear, shipping cellophane wrap. There were approximately 8-10 individual packs still wrapped and could have been unintentionally rung up as a single unit if I had not caught it. In other words rather than selling 8 or 10 packages at roughly $3.00 each (a total of $24-$30) we could have theoretically sold all 8 or 10 units for $3.00. That would have been bad enough. To make matters worse, there were about 10 such packages that had not been properly processed when the merchandise was stocked. Assuming there were 10 units in a package multiplied by 10 packages, the shortage could have been almost $270! Some people are thinking that this would not have happened and the error would have been caught quickly before all of the packages could have been sold. That is not necessarily so. There are people who look for stocking errors and purposely take advantage of them. My customer was not entirely happy about the catch I made but he said he understood. No, it is not the same as trying to stop shoplifting but not addressing these problems can be just as costly if not more so.
Since we are on the topic of operational issues that cannot be prevented by a Sensormatic system let’s discuss compactor security. Does your store have a compactor? If not, how about an outside dumpster? Who is responsible for tossing trash in your business? Do employees throw out their own boxes, packaging, etc.? Does your store keep a lock on the compactor if you have one? If it is locked, do you limit who throws away the garbage and does anyone inspect what is being tossed? As a former Loss Prevention Manager I was actively involved in the operational integrity of the store. I ensured our managers were in compliance with company policies regarding compactor security because the risk of shortage due to carelessness was that great. I would conduct audits of boxes and trash that were waiting to be tossed and I would find merchandise that was overlooked during the freight flow process. There were times I would find merchandise that was to be thrown out for vendor credits and some items had not been processed through reverse logistics. I was reminded of this source of shortage when my daughter, an area manager for another retailer was telling me how an employee had left several boxes of shoes in a box by their compactor waiting for a manager to throw it out. Had she not been careful about what she was throwing in they would have incurred shortage in shoes. It also would have made the store short of that shoe size and affected potential sales had a customer wanted them and they weren’t available. Managers don’t need to stop shoplifting in order to save shortage from happening.
A Sensormatic system can make a huge difference in shortage for store owners willing to invest in them. They are a serious deterrent to shoplifters and dishonest employees and they will identify attempted efforts to steal. They can also curb some operational shortage, though not all of it. That is why it is important to contact Loss Prevention Systems, Inc. for a consultation on how to prevent theft, fraud and shortage for a thorough review of your shrink risks. You will be surprised at how much you can save by spending on Loss Prevention.
Sensormatic systems are important and we can help you with it. Call 1.770.426.0547 and let’s talk.
