Loss prevention is essential for both small and large businesses alike. There are various forms of loss prevention, including protection from external and internal theft, administrative error, and supplier fraud. This article will delve into how you can use loss prevention to address these threats to the wellbeing of your business.
External Theft – Shoplifting
Almost 36% of business capital shrinkage is thought to be due to shoplifting. Loss prevention must therefore address shoplifting. This could include customers stealing items from the racks, but it may also refer to people returning stolen items to get store credits or refunds. Thieves may also attempt to use counterfeit money to buy items in your stores.
There are various ways to address loss prevention when it comes to shoplifting. CCTV security cameras are one toolthat can help to protect your business by deterring thieves. Signage that lets customers and potential shoplifters know that there are security cameras present may also help to prevent shoplifting.
Internal Theft – Employees
Approximately one third of business loss comes from internal theft from employees. Some instances of theft could be simply taking something without paying for it. However, employees can be sneakier than that, sometimes processing fake returns, giving out fake gift cards, omitting to add items to an order, or blatantly taking money from the till.
Loss prevention needs to involve the monitoring of employee activity to prevent and provide accountability for internal theft. CCTV security cameras are a good first step for preventing theft from your business by employees. However, having clear business policies and consequences for liberties taken could also help withloss prevention when it comes to employees.
Admin errors can also contribute to loss in a business. Out-dated manual processes and systems can significantly worsen this problem. Loss prevention often involves installing CCTV security cameras, yet it can also involve changing processes in your business to improve efficiency. Using more up to date technology and systems will help to prevent further mistakes. Training your employees to remedy mistakes will also help your business to run more smoothly.
Supplier fraud is another contributing factor to company loss. It isn’t as large of a contributor as the items above, but it’s still worth considering. While outright theft from customers or employees is quite an obvious area to apply loss prevention to, supplier fraud may be more subtle. But if you want to be serious about making more money from your business, then checking invoices and products delivered by suppliers is essential to make sure you’re not being ripped off.
Loss prevention covers many areas when it comes to business. It includes obvious areas such as shoplifting and theft from employees, but it can also involve admin mistakes and supplier fraud. Many of these issues can be governed with installation of loss prevention technologies such as CCTV. Other areas can be improved with clear staff training, better business policies for disciplinary action, and more efficient systems.