Loss Prevention

One of the most important problems experienced in stores and supermarkets in shopping malls; products are taken out of the store without payment or losses are experienced due to other reasons.

What is Loss Prevention?

Loss prevention is the establishment of procedures to be determined by the store management and their integration according to the workflow in order to prevent product and money loss in the retail sector. Within the scope of loss prevention program, it is necessary to take preventive measures with risk analysis proactively rather than reactive measures. In the same context, training should be provided to all personnel.

In order to prevent losses in stores, preventive and proactive measures should be taken with a systematic approach. This approach should seek answers to the following questions:

• Are there any losses in the store?
• How can we tell if there is a loss or not?
• What is the size and financial dimension of the losses?
• How will the store be affected by these losses?
• Is it possible to minimize losses?
• How can we prevent losses?

Loss Prevention is one of the most important problems of many companies. In order to solve this problem, a good Loss Prevention Program should be prepared and implemented. After applying this program, you will see how useful it can be, when you minimize your losses.

According to the statistics, there is a loss point in every business, whether small or large, and this negatively affects the earnings of businesses.

Loss Prevention should actually be adopted as a workplace culture and should be developed by senior management within a loss prevention program by setting an example to all employees. In this regard, all employees must be trained, and they must be informed about where the losses originate and what the consequences may be. It should also be explained that the loss of the enterprise is actually a loss of the employees indirectly.

We can always ignore the losses, but if we evaluate the losses statistically, then we can better see how much we lost and how it affects our financial situation. You won't believe how big the losses are in department stores.

Loss prevention function is another important part of a store, which should be in addition to functions such as sales, marketing, human resources, purchasing, storage, and it cannot be ignored.

Preventable profit loss. That’s inventory that your business loses due to stealing or error. Fortunately, loss prevention strategies cut profit loss caused by shoplifting or theft committed by employees. Additionally, these strategies minimize inventory reduction due to operational error. In most retail sectors, thin margins mean that this loss of inventory can make the difference between making and losing money.

Your employees are on the front lines of loss prevention. Put in place these strategies to preserve your profits during the next series of employee training and in-store meetings. Often, it costs very little to make a big difference to your bottom line.

Everyone in the store must work together to identify and prevent inventory loss. Employees who are willing to work together towards a common goal are at the core of any strong loss prevention program. By taking pride in their work, employees are less likely to bend the rules or disregard a policy they know is on the books.

To create that company culture, support and empower employees in everything they do. Let them know they are appreciated and an important part of the team. Hold regular and brief sessions that review:

• Guidelines for returns
• Use of employee discounts
• Damaged items
• Incoming inventory

With these rules and reminders in place, team members are more likely to adhere to them.

Loss prevention is as important to your store’s success as marketing and customer service, so give it the attention it deserves. Often just a few key steps make a significant difference.