VbQOm8cTeaQ66gqgO2NakxTPshs Indonesian Retail: 10/10

October 17, 2010

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Shrinkage Preventive (handbook for Loss Prevention Experts

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Shrinkage, or losses due to theft, in the Retail Industry become a serious problem. There are many ways regarding what a retailer can do to stop these losses.

This issue is very complex and there is a great deal of research available. I will attempt to provide a comprehensive overview of what I know and what possible solutions

What can I do as a Retail Manager to prevent employee theft? I'm glad you asked!
1. Highly Visible Security programs
2. Rigid Company policy of Prosecution
3. DOCUMENTATION of merchandise / currency handling procedures.
4. Double that documentation
5. Pre- Employment Screening
By the way, The Civil Rights Act of 1964 and other laws do directly affect the amount of information an employer can request from an applicant. Questions about Age, Health, Marital Status, Arrests, Race and Religion cannot be asked. However it is permissible to ask about CRIMINAL CONVICTIONS.
6. Background Checks
Whether done in house or through an outside agency, hospital records, prior employment, taxes, bank accounts, credit cards and personal references should be checked and verified.
7. Polygraph Screening
Especially with cashiers, polygraphing prior to employment will provide a good idea of who you are hiring.
8. Employee only entrances
Whenever possible, employee's should be required to enter and exit the building via designated entrances.
Locker, cafeteria, and lounge facilities should be located in close proximity to this entrance. The time clock should be set up between these area's and the store proper.
9. Personal items should not be allowed to be carried into the store proper. NO Purses, Coats or Parcels should be allowed onto the sales floor.
10. The right to search may be reserved by the company under certain conditions.
11. Maintenance personnel, Contractors, Salespersons & others who work in the store after hours should be supervised by Security personnel while in the store.They should also be made to sign in and out after store hours.
12. Any Garbage removed from the facility should be inspected prior to removal from the facility.
13. Stockrooms should be heavily monitored. This is a favorite place for employee's to steal from.
14. Look for merchandise stashed behind other merchandise, in the trash, in the break area etc.
Note: If you find stashed stuff, instead of picking it up, put surveillance on it !
15. Watch for Unauthorized mark downs !
16. Do unannounced and random counts on incoming shipments and verify the count against the shipping documents.
17. In the warehouse, don't let the truck drivers into the warehouse, Make sure that the documentation matches the cargo. Perform random verifications of counts against the shipping documents
18. Reserve the right to search the trucks of the shipping company.
19. Keep shipping and receiving platforms separate.
20 Cargo areas of trucks should be separately locked and sealed from the drivers. If you find a broken seal or lock, don't take the shipment.

PREVENTING REFUND THEFT BY EMPLOYEE'S

In most stores, the refunding policy is very liberal and typically refunding is done in cash by specific persons, usually a junior manager. This is an excellent opportunity for employee theft.

Here are a few tips to help eliminate Employee refund theft
1. A price ticket and / or receipt must accompany the refund request
2. Polygraph the persons responsible for refunding on a monthly basis
3. Develop a procedure for refunding and investigate any deviation from that policy
4. Check the data on the receipt with the item being returned. Make sure the employee isn't trying to return a higher priced item than they bought.
5. Maintain a record of employee returns. Too many returns may indicate a theft problem.

Strategic In-Store Products


In-store solutions for each brand/marketing objective

Network Products
-Long term brand building of regularly purchase items
-Discussed with Supplier’s Marketing team

Customized Products
-Short term programs which are promotion / seasonally led
-Discussed with Supplier’s Marketing and/or Trade Marketing team

Product Bundling

Creating a fixed set of customized products sold based on Suppliers brand needs – refer to the Zone Concept
The retail company will gain maximum returns with product bundling.
Avoid Suppliers paying only for one or two customized products.
Offers the Suppliers a total solution package with instore promotion assistance in creative and production expertise

Zone Concept
Shopping Area Product Zones

Entrance zone Orientation Zone
Shelf / Aisle Area Basket Zone
Block Displays /Gondola Ends Unplanned zone
Check Out Impulse Zone

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