Govern Profit Protection With Loss Prevention

Profit protection is an ongoing challenge in the best of times. The challenge is magnified during a recession because you're forced to get creative to cost-effectively address loss. One way to protect profits is to efficiently synchronize LP efforts with everyday retail functions such as workforce management (WFM), POS, and data security.  

Train Your Workforce, Reduce Risk
Some companies respond to recessions with job cuts, consolidation of jobs, and training reduction. But, while you may think you're saving money by making these moves, you could be causing more harm than good. A well-trained workforce is your best asset during a recession because it performs more efficiently and accurately. But, if you're forced to cut jobs, you can help the employees taking on extra work by properly training them. Group training via video or webinar is a great idea. For instance, mega-sporting goods retailer Bass Pro Shops encourages product vendors to visit stores to demonstrate their newest products to the staff. The store's headquarters in Springfield, MO regularly hosts training sessions for store-level department managers.

Techniques like these will help you cut costs and training time without sacrificing quality. Rely on your skilled employees to mentor and train new hires. Just be sure to review the content skilled employees will teach, so they don't pass on bad habits.
 

Providing your workforce with proper training will help improve employee morale, confidence, and most importantly, loyalty. Consider the alternative, because a higher cost of living provides your employees a growing incentive to become disloyal by stealing data and time. Fearful of losing their jobs, your employees might also be spending company time looking for their next position. Indeed, according to a recent McAfee survey of 1,000 IT decision makers, 36% are worried about security problems caused by employees in financial stress.
 

Your LP department has the opportunity and the responsibility to lessen these threats to your invaluable data and precious profits. Encourage your LP team to communicate its concerns with your employees. The threat of intervention is a useful deterrent.
 

Guarding your store against external theft remains as  prudent as ever. If you do suspect theft or data security violations — internal or external — your LP department must implement ways to monitor your store. For instance, increase the frequency of internal audits. This will allow you to investigate concerns and better understand issues relating to fraud. Reconcile bank statements promptly. Doing so provides a good control mechanism to ensure you're protecting profits and sensitive data. Revisit your traditional antishoplifting and antitheft technologies, such as CCTV (closed circuit television), to monitor doorways, POS stations, etc.
 

You're dealing with multiple challenges across your enterprise while your resources are precious and few. Everything from maintaining data security to managing your workforce and eliminating fraud at the POS can help protect your profit margin. LP encompasses more than cameras and alarms. In fact, multiple challenges require integrated solutions, many of which are directly connected to LP.