As we begin the 2024 new year, let’s all make a commitment to keep the “LP Basics” a daily priority within our stores, warehouses, and distribution centers. While some losses do occur at the time of physical inventory taking (inaccurate counts, misidentifying merchandise, etc.), the greater majority of our losses occur day-to-day throughout the year. There are many opportunities for loss to occur from the time of product receipt, until it is purchased by our customers, or returned to a vendor/supplier, or disposed of. So, let’s start 2024 off the right way by checking to ensure that your location is consistently doing the ‘LP basics’, day in and day out, no exceptions. We believe this is one of those areas that management sometimes takes for granted as being consistently complied with, since most companies have policies and procedures in place to address these ‘basic’ loss prevention/shrinkage control issues. Yet, our experiences consistently show that many locations, especially those with high losses, fail to properly implement, maintain, or consistently comply with ‘basic’ loss prevention policies and procedures on a daily basis.
Here are just a few “LP basics” you should be complying with on a daily basis.
Opening/Closing: From both a security and safety point-of-view, ensure two associates are always present at the opening and closing of the store/location.
Customer Service: All customers should be promptly greeted upon entering and then approached and offered assistance throughout their visit. Associates should not be so task oriented that they get tunnel vision and ignore customers walking about the sales floor.
Fitting Rooms: Lock and/or monitor fitting rooms at all times to ensure product going in is counted and accounted-for upon customer exiting. Keep fitting rooms clean, and caulk inside areas where tags/tickets could be concealed.
Manage Technology/Devices: Remember, technology (EAS, CCTV, merchandise alarms, locked showcases, keeper boxes, etc.) must be managed, and polices/procedures regarding this technology adhered to at all times.
Door Controls: Back Doors: All back/emergency exit doors should be protected by a functioning local alarm-lock which is ‘set’ at all times. Overhead Doors: These doors should be closed and padlocked when not in actual use, to prevent unauthorized entry or ‘pass-outs’. Customer Doors: These entryways should be monitored at all times.
Bags Checks: All associates (including mgmt.) should have their bags consistently inspected immediately prior to exiting the location.
Trash Removal: Trash contents should be inspected by a manager/2nd person immediately prior to removal; boxes/ cartons should always be flattened prior to removal; and clear trash bags used in all trash receptacles.
POS Transactions: Critical POS transactions such as refunds, voids, price overrides, etc. should be consistently verified at the time of occurrence by a manager/2nd person.
Pre-Employment Screening: Prior to hiring new associates, ensure your company’s pre-screening requirements are fully complied with to assist in hiring only honest and ‘quality’ associates.
LP/Shrink Training: New Hires: Ensure all new-hires are familiar with your location’s LP/Shrink Control Program, and all company P&Ps as they relate to merchandise accountability and control. Current Associates: Ongoing LP/Shrink materials should be regularly provided to and reviewed with all associates.
Receiving Process: If inbound freight is not received and documented accurately your numbers/inventory will be off from the start. Follow your company’s receiving policy and promptly document and report any O/S/D’s.
Transfer/Delivery Process: Always double check for picking accuracy before finalizing any transfer or delivery.
Damaged & Defective Product: Product received or found damaged/defective in your location, must be treated the same as good saleable items and processed per policy.
Auditing: Ensure consistent compliance to company policies/procedures by conducting unannounced audits. By reducing the opportunity, you reduce the chance of theft/loss.
These are just some of the ‘LP Basics’ when it comes to practicing good loss prevention on a daily and consistent basis. Remember, daily controls will result in positive year-end profits. Now go have a great 2024! $
