Key Control
I just read this news story about employee theft at a Kmart where one of the suspects had a master key to the store! This is absolutely crazy. I'd love to know how this person got the master key to the store.
Fergus Falls K-mart Requests Theft Charges Against Second Employee Within Year
The 19-year-old employee may have been caught after another man, Jason Draak, was found in Fargo with a master key to the K-mart in Fergus Falls. Officials believe the 19-year-old sold Draak that key.
Key control is a basic requirement to loss prevention.
Off the top of my head, when I think of key control I think of...
1. Change locks when you change anyone who has access to keys.
2. Multiple "levels" of keys. The master key needs to be in the GM's hands, and other people need keys that only access what they need to access in the course of their job.
3. Keys should be tracked to whom they are issued to...
4. Keys should be locked in a safe or key cabinet when not used.
5. If a set of keys are lost, it should be treated like a 911 emergency.
Top 5 Fundamentals to controlling inventory shrink?
This is my list... any additions or changes?
1. Review of exception reports.
2. Walk the salefloor.
3. Look for unsecured merchandise (no tags, not locked, etc.)
4. Ask employees for receipts on all items (especially consumables).
5. Responding to cash over and short reports every day.
Disclaimer: I don't think the above are the complete answer to controlling shrink (I wish it were that easy!). I do think these 5 items go a long way to reduce the immediate causes of shrink.
Discuss this blog post on LPDiscussions.com.
LP Strategies to reduce litigation risk
Just read a great article on reducing risk from from retail loss prevention activities. Tons of great information.
While the goal of any loss-prevention program must be to prevent loss, a well-crafted program will be designed to minimize the risk of collateral litigation, which can arise under both state and federal law.
One line in particular is interesting:
On a broader level, stores should emphasize preventing the loss over making the apprehension. Detentions and recovery quotas should be de-emphasized.
Full article can be found at BlankRome.com.
I think this is very important. One bad stop can result in major problems for a retailer. Each shoplifter stopped is an unknown variable. You don't know what they will do to avoid being detained. (Read news stories about shoplifting stops that went bad at LPDiscussions.com) This doesn't mean you never stop a shoplifter, but you need to take extra care to ensure the safety of your staff and minimize exposure to the business.
New Project : LPDiscussions.com
I've started up a new forum website focused on Loss Prevention. LPDiscussions.com is focused on the open sharing of loss prevention tactics and strategy. I hope everyone will take a few minutes to join and start participating.