How Is Preventable Loss Damaging Your Business Model?
Preventable loss happens to businesses across the globe every single day. Whether it be through ways of theft, fraud, vandalism, misconduct, abuse of company policies, or accident, “shrink” is experienced at all levels of business. In a 2016 National Retail Security Survey, the U.S. retail economy reportedly lost $45.2 billion in sales due to shrinkage in 2015. Inventory loss is a topic that no business owner likes to discuss. However, just because things have been this way, does not mean they have to continue this way.
Once a company has recognized a problem, they can begin taking steps to counteract and inevitably solve the problem of preventable loss. Having a clear and actionable loss prevention plan is the starting point your business can take for the long-term, but we thought of a few more specific concepts you can start implementing immediately and start helping your business protect profits today. From easy to install tools to new technology, these are a few steps that you can take to be more vigilant about loss prevention.
Preventing Inventory Loss at Your Business
The first and sometimes most obvious step your business can take towards loss prevention is the signage. Installing security and anti-theft signs near the entrance of your business is a low-cost way to deter potential loss and also serves as a great reminder to people that any amount of loss will not be tolerated without consequence. Another step you can take, if you’re willing to invest a bit more into security, is to consider installing surveillance cameras. Security cameras are a great way for you to monitor store activities around the clock and will provide you the chance to revisit any recorded activity, should you see it necessary.
In this day and age, taking advantage of the technology that is available is crucial to your company’s success, as well as its loss prevention. Staying on top of your inventory is critical and arming yourself with a vigorous inventory management system will only make tracking merchandise easier for you. Modern technology also comes in the form of Radio Frequency Identification (RFID) and an up-to-date inventory system. Affixing RFID tags provides you with technology that can help prevent losses in any number of the stages in the supply chain, as well as product information, enabling you to track products as they move and gives you real-time inventory visibility and accuracy. When it comes to inventory counters, some companies now have a mobile app that allows you the ability to conduct physical inventory counts, right from your smartphone or tablet and is easy as scanning an item’s barcode with the device’s camera, sending the SKU directly to your database and giving you updated and accurate stock levels.
Get Your Staff On Board to Prevent Theft
Last, but certainly not least, your business is as powerful as your staff. Enlisting and encouraging your staff to help deter potential loss will ensure that everyone is on the same page and training all employees will not only help prevent loss, but will also help prepare them for how to react if theft does occur. Prioritizing the upkeep of a clean and well-organized business will also send a clear message that details do not go unnoticed at your company.
Taking Proper Steps Towards Profit
Counteracting preventable loss may seem like a difficult task, but you have the power to change that for your business. Using the steps we have outlined above and staying committed to preventing shrinkage will put the power back in your hands when it comes to loss prevention and can help you and your business take proactive approaches to reducing shrinkage and improving your bottom line.