Increase company's financial benefits

HOW LOSS PREVENTION INCREASE A COMPANY’S FINANCIAL BENEFITS

To develop a programaround Loss Preventionconcept will help you toreduce the opportunitiesthat these losses can occurand more specifically, workto prevent the loss ratherthan solely be reactive tothem after they occur.

What does LOSS PREVENTION means?

Prevention of loss of inventory

or monies.

Policies

ProceduresBusiness practices

When a retailer experiences a loss, they are losingdirect, to the bottom line profitability. Lostinventory requires replenishment at a cost to theretailer and lost monies cannot be replaced. Thecost of these losses goes direct to the bottom lineof a retail balance sheet causing lost profits.



Loss Prevention is the concept of establishing policies, procedures and business practice to prevent the loss ofinventory or monies in a retail environment.

Three categories to be dealt with by professionals of loss prevention:

Internaltheft

Externaltheft

Administrativefailures

Administrative failures:These failures include paperwork errors, these mistakescan contribute upwards of over 15%-20% of a retailer'sannual loss. Ironically, most of the errors seen in retail areemployee-caused, thereby making a retailer's employeeperhaps the highest contributor to the business loss everyyear!Errors can occur anywhere - from checking inshipments, to ringing on the register to transferringmerchandise. These errors can include the inaccuratecounting of merchandise to the improper discounting oraccounting of a sale or tender. Simple mistakes causedover and over again have resulted in thousands of dollarslost to a single retail establishment.





External TheftIt is often caused by shoplifting, break-ins, robberies orother acts by outside sources. Although it does not causeas much loss overall compared to internal theft,shoplifting and external theft most certain causes asubstantial amount of loss annually to the retail industry.Controlling external theft requires a commitment toeducating your employees on good customer service,awareness to the signs of a potential loss and how to bestprotect the store and inventory against external loss. Thisrequires the establishment of procedures and training inareas such as; shoplifting prevention, robbery awareness,safety and how to handle various situations dealing withpeople. What security measurements you have in placewithin your retail location can also greatly assist you inyour efforts against external loss (although not always).

Internaltheft

Externaltheft






Internal (Employee) TheftIt is the largest contributor to loss for mostretailers, regardless of size or segment. Although somemay wonder why employee theft would be the largestcategory of loss, hands down, every survey, study andcomparison across segments has shown time and timeagain that those who steal from a business the most areemployees.Employee theft occurs through many different methods.From simple merchandise theft to collusion with friendsor other store employees, inventory losses by employeescan easily deplete your profits (and the merchandiseavailable for sale to customers). The point of sale(register) brings with it many other forms of employeetheft. Simply removing money from the till to elaborate"conversion frauds" that include refund, void or discountthefts, point of sale theft can often cause a "double-dipeffect" where you lose money and inventorysimultaneously through a single incident.

Internaltheft

Externaltheft


• Reward your staff with discounts and bonuses. A fair and generous staff discount cancompensate for a low hourly wage or salary and can be very helpful in reducingemployee theft. Nevertheless, all staff checkouts should be documented and shouldbe checked out by someone else.


Some simple loss strategies

• The beginning of the prevention of internal theft the hiring process.• You must carefully screen the people you hire. Collectively retailers do a poor job ofchecking references and doing background checks. Therefore often retailers end uprecycling dishonest employees and end up hiring each others thieves. It isrecommended to check at least 3 or 4 past employee references.

• It is important to know the status of your inventory. A strict inventory control willgive you a good sense of both the level of shoplifting as well as internal theft.• It is recommended to perform accurate physical inventory counts of four timesannually. This strategy sends to the employees a message of seriousness about theprevention of theft.

Inventory Control:

• To be included on “employee procedures manual” or by developing an “internaltheft policy paper”.• These procedures should include penalties for fraud and theft; make employeesunderstand the consequences of theft…

Policies and Procedures:

Reduce temptation: • Develop policies to minimize opportunities from employees.

• One of the best methods of keeping your employees happy is to provide a positive place to work.

Hire Smart:

Positive work environment:

Staff perks:

Professional background.

Regional Loss Control Manager North, Central and East of Spain on retail company. Processesquality analysis.

Security Manager on aviation cargo transportation and logistic.

Regional Loss Control Manager North, Central and East of Spain. (SPRINTER Sports & Fashion -November 2012/ June 2013- Retail company.)

Security and Loss Prevention Manager (Integra2 -June 2010/March 201-: Logistics and transportation company, belonging to GRUPO LOGISTA).

Freelance collaborator (ABS Quality and Evaluations, -March 2010/June 2010- Recognized Consultancy Firm specialised on ISO regulation and official certification)

Security Officer (DHL Express -April 2008/December 2009-: Express logisitic and transportation company.

Security officer, (DHL Aviation -February 2004/December 2009):

Polytechnic University at Madrid. (Auditor specialist, Audit, Security and Risk Management, 2011 –2012).Groups and activities: Company computing security analysis and planning, auditing different computing spheres of the organization.Univeeduction and sasco de Vitoria. (Master on Security Management).Groups and activities: Security Management, 2007 – 2008University of Europea de Madrid. (Security post-grade on Patrimony Protection, 2004 – 2005).Groups and activities: Patrimony Protection course.University of Salamanca. (Degree on English philology, 1994 – 1998).

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For more information visit: http://es.linkedin.com/in/miguelangelgonzalezmorinigo

http://es.linkedin.com/in/miguelangelgonzalezmorinigo

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