Increase company's financial benefits
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Loss prevention aims to establish policies, procedures, and practices to prevent loss of inventory and money in a retail environment. The three main categories of loss are administrative failures, external theft, and internal theft. Administrative failures include paperwork errors by employees that can account for 15-20% of annual losses. External theft includes shoplifting and robberies. Internal theft, primarily employee theft, is often the largest contributor to loss. Loss prevention strategies include careful hiring, inventory control, developing internal theft policies, and minimizing employee temptation through positive work environments and perks.
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Increase company's financial benefits
- 1. HOW LOSS PREVENTION INCREASE A COMPANYS FINANCIAL BENEFITS To develop a program around Loss Prevention concept will help you to reduce the opportunities that these losses can occur and more specifically, work to prevent the loss rather than solely be reactive to them after they occur. What does LOSS PREVENTION means? Prevention of loss of inventory or monies. Policies Procedures Business practices When a retailer experiences a loss, they are losing direct, to the bottom line profitability. Lost inventory requires replenishment at a cost to the retailer and lost monies cannot be replaced. The cost of these losses goes direct to the bottom line of a retail balance sheet causing lost profits.
- 2. HOW LOSS PREVENTION INCREASE A COMPANYS FINANCIAL BENEFITS
- 3. HOW LOSS PREVENTION INCREASE A COMPANYS FINANCIAL BENEFITS What does LOSS PREVENTION means? Loss Prevention is the concept of establishing policies, procedures and business practice to prevent the loss of inventory or monies in a retail environment. Three categories to be dealt with by professionals of loss prevention: Internal theft External theft Administrative failures Administrative failures: These failures include paperwork errors, these mistakes can contribute upwards of over 15%-20% of a retailer's annual loss. Ironically, most of the errors seen in retail are employee-caused, thereby making a retailer's employee perhaps the highest contributor to the business loss every year! Errors can occur anywhere - from checking in shipments, to ringing on the register to transferring merchandise. These errors can include the inaccurate counting of merchandise to the improper discounting or accounting of a sale or tender. Simple mistakes caused over and over again have resulted in thousands of dollars lost to a single retail establishment.
- 4. HOW LOSS PREVENTION INCREASE A COMPANYS FINANCIAL BENEFITS What does LOSS PREVENTION means? Loss Prevention is the concept of establishing policies, procedures and business practice to prevent the loss of inventory or monies in a retail environment. Three categories to be dealt with by professionals of loss prevention: External Theft It is often caused by shoplifting, break-ins, robberies or other acts by outside sources. Although it does not cause as much loss overall compared to internal theft, shoplifting and external theft most certain causes a substantial amount of loss annually to the retail industry. Controlling external theft requires a commitment to educating your employees on good customer service, awareness to the signs of a potential loss and how to best protect the store and inventory against external loss. This requires the establishment of procedures and training in areas such as; shoplifting prevention, robbery awareness, safety and how to handle various situations dealing with people. What security measurements you have in place within your retail location can also greatly assist you in your efforts against external loss (although not always). Internal theft External theft Administrative failures
- 5. HOW LOSS PREVENTION INCREASE A COMPANYS FINANCIAL BENEFITS What does LOSS PREVENTION means? Loss Prevention is the concept of establishing policies, procedures and business practice to prevent the loss of inventory or monies in a retail environment. Three categories to be dealt with by professionals of loss prevention: Internal (Employee) Theft It is the largest contributor to loss for most retailers, regardless of size or segment. Although some may wonder why employee theft would be the largest category of loss, hands down, every survey, study and comparison across segments has shown time and time again that those who steal from a business the most are employees. Employee theft occurs through many different methods. From simple merchandise theft to collusion with friends or other store employees, inventory losses by employees can easily deplete your profits (and the merchandise available for sale to customers). The point of sale (register) brings with it many other forms of employee theft. Simply removing money from the till to elaborate "conversion frauds" that include refund, void or discount thefts, point of sale theft can often cause a "double-dip effect" where you lose money and inventory simultaneously through a single incident. Internal theft External theft Administrative failures
- 6. Reward your staff with discounts and bonuses. A fair and generous staff discount can compensate for a low hourly wage or salary and can be very helpful in reducing employee theft. Nevertheless, all staff checkouts should be documented and should be checked out by someone else. HOW LOSS PREVENTION INCREASE A COMPANYS FINANCIAL BENEFITS 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 of checking references and doing background checks. Therefore often retailers end up recycling dishonest employees and end up hiring each others thieves. It is recommended to check at least 3 or 4 past employee references. It is important to know the status of your inventory. A strict inventory control will give 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 times annually. This strategy sends to the employees a message of seriousness about the prevention of theft. Inventory Control: To be included on employee procedures manual or by developing an internal theft policy paper. These procedures should include penalties for fraud and theft; make employees understand 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:
- 7. Professional background. Regional Loss Control Manager North, Central and East of Spain on retail company. Processes quality 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 2008 University 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). ExperienceEducation For more information visit: http://es.linkedin.com/in/miguelangelgonzalezmorinigo