One of the foundational elements of an effective loss prevention program is the implementation of strategies designed to mitigate loss. The primary benefit of developing and establishing strategies is improved operational compliance. Loss prevention strategies are the key to improving operational consistency throughout an organization.
Procedures
Establishing procedures is a key strategy that guides employees on an established, approved, and beneficial path regardless of the presence of loss prevention staff members. The premise of this strategy is to identify areas of potential loss within an organization and to establish operational procedures that, if properly followed, will reduce the loss exposure. Once these procedures have been established, the likelihood of experiencing loss in those areas is reduced substantially.
These procedures should be monitored periodically for compliance. Perhaps one of the most effective ways to accomplish this is to develop an audit process wherein the most critical or consequential procedures are evaluated. The audit process provides a consistent method for measuring and reporting the compliance rates of individual stores and employees.
LP Audits
Audit data can be beneficial in several ways. It can be used to identify training opportunities, operational performance, loss exposures, and much more. Arguably, the most important considerations when developing an audit process are establishing the audit content and frequency. When the content and frequency have been established, it is important to ensure that only qualified and trusted auditors are permitted to conduct audits. This helps ensure accuracy, consistency, and thoroughness, thereby increasing the value of the audit data.
A wide range of procedures can be audited within the scope of loss prevention and beyond. Some of the most common procedures audited in the area of loss prevention are:
- Security Procedures
- Cash Handling Procedures
- Cash Register Procedures
- Documentation Procedures
- Receiving Procedures
- Merchandise Return Procedures
- Discount and Coupon Procedures
- Product Securement Procedures
- Delivery Procedures
While these areas are essential to ensuring compliance to operational procedures, often these audits can assist other departments in ensuring that their interests (as they relate to operations) are being addressed consistently as well. Auditing for other departments can add significant value to both the auditors and to the loss prevention department. Some departments that may benefit from utilizing an LP audit process are:
- Marketing
- Advertising
- Fleet
- Facilities
- Finance
- Information Systems
- Accounting
- Human Resources
Whether auditing for OSHA compliance, marketing campaigns, DOT compliance, or pricing integrity, both the LP audit process and the auditor’s prowess can be of great value throughout an organization.
Procedures and Audits, while they are fundamental strategies to mitigating losses, should not stand alone; rather, they should be core tenets of a comprehensive loss prevention strategy. Other strategic tenets may include:
- Training and Development
- Product Securement
- Screamer Tags
- Electronic Article Surveillance
- Lanyards
- Aisle Placement
- Blindspots
- Traffic Control
- Merchandising
- IP Cameras
- Access Control
- Alarm Systems and Security
- Background Checks
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