If you are in the supermarket/grocery industry, you are surely familiar with shrink and how it impacts your business. Loss prevention can become a difficult task, especially when you do not know where to start.
Let’s look at the first few steps needed to begin your Loss Prevention strategy:
- Identifying the problem
- Developing a program
- Focus your efforts
- Use monitoring and tracking technology
- Measure the results
- Adapt and repeat
Identifying the problem is the first and most crucial step in any good shrink reduction program. This means going through each of the factors that are contributing to your shrink and identifying the biggest one that you can tackle right away. If you are in a paid loss prevention position, this should be the first thing on your list when attempting to tackle shrink reduction. Your job is to determine that the proper funds are being allocated in the correct places, such as asset protection, to ensure the proper execution of a shrink reduction plan.
The collection of data regarding shrink statistics is, unfortunately, hard to get for many retailers at the moment. Most of them don’t have the proper technology needed to keep track of such important stats. When shrink statistics are not available, retailers are left to speculate on what is causing their loss, and many of them will guess incorrectly.
Date Check Pro is a system for scanning your entire inventory or product and seeing which products are about to expire. It will help you place those items in a new pricing category or change their shelving position to improve sales.
It is pointless to focus funds on an area that isn’t proven to be a problem area and no longer provides an adequate ROI. The most successful programs aimed at tackling shrink are tied into the finance department. They will be able to offer useful and relevant data for you to work into your loss prevention program.
Video technology can also have a tremendous influence on shrink reduction. Video technology can be used to record the interviews of those involved with product theft, as well for CCTV technology that can be used to record and identify shoppers who are suspected of shoplifting. The higher the arrest rate for shoplifters at your store, the lower your levels of shoplifting. CCTV in the past hasn’t been as reliable as the technology of today. Innovations have been made in CCTV technology that has improved its success rate in identifying and capturing criminals.
Even when CCTV doesn’t succeed in capturing a criminal on the spot, it can still help you gather information about how they acted while they stole it and, what areas they targeted. This can, in turn, help you decide how to place your products so that the ones most targeted by thieves are placed in areas that are under strict supervision.
In conclusion, shrink is a serious threat to not only your pockets as a retailer but to the planet. Remember, food waste isn’t just your businesses issue. Missing an opportunity to sell “soon to expire” items will cause a loss in profit and add to the ever increasing wasteful nature in the industry. Date Check Pro has started a new food waste initiative designed to help you track soon to expire items before they are thrown away.
If you are a supermarket or grocery retailer and want to learn more about how to stop waste visit: www.stopwastetogether.com Find the resources and tools that can help you effectively eliminate shrink while helping the environment.