Asset protection training

 

The rates of shrinkage in retail industry have gone up at an alarming rate in the past decade. For any retail business to prosper, the management has to make sure that shrinkage does not cross the 2% margin. With more and more retail companies using effective asset protection strategies, it has become a key factor in any retail organization. To understand the concept of asset protection, they need to know the following before reaching a conclusion:

 

• what is it that needs protection and from whom
• What is the importance of protecting this
• Is the threat from external or internal sources
• What would be the consequences if preventative actions are not taken
• Which method of protection will suit you and what is the cost involved

At any given point of time, the cost for the protection should not exceed the cost of what is being protected. In a retail store, the merchandise is what needs protection and the most effective method is to give employees asset protection training so that they are always vigilant and careful in their dealings. Let us now list in detail what can be the causes of shrinkage and how training will help the situations.

Asset protection training - External causes

These factors include shoplifting, theft of merchandise or cash from drawers, burglary, etc. Shoplifting has indeed become a serious threat to many small retail businesses and is more of a crime than petty theft. There are many ways to curb such incidents such as placing high value goods in a secure location, employees being attentive to customers who are just loitering, suspicious looking people entering the shop, etc. Cash should always be transferred to the cash room when there is less traffic in the shop so as to avoid burglary. All these can be achieved by training your staff to be on the lookout for any out of the ordinary incidents. A recent survey has proved that alert staff have decreased shoplifting rates drastically, which is very good for any retail establishment.

 

Asset protection training - Internal causes

The internal causes are more difficult to identify and comprise staff theft, lax of maintaining correct inventory, storage of merchandise, etc. Staff theft can be curbed by carrying out regular end of the day checks of their belongings, use of cctvs in prime locations, etc. In a retail business which is dealing with perishable goods, storage needs to be given utmost importance. Since the goods will have limited shelf life, they should be disbursed according to the expiry dates and the ones which are in first, should be sent out first for selling. The receiving staffs who receive the goods from vendors should always follow set rules so there are no discrepancies. This can only be done with proper training in place.

As soon as a new employee joins a retail organization, it is the duty of the management to give him or her insight to the business including types of goods and the range of their prices. Apart from this, if they are aware of asset protection and what are the main causes of shrinkage in your type of business, it will be an added advantage.

Once this is done, the effectiveness of the training should be checked on a regular basis for all the employees and the importance reiterated. It is the most cost effective strategy which is being recognized by many retail companies worldwide and has yielded more promising results. There are many retail loss prevention companies which offer such services at competitive prices. A good loss prevention company can transform the profitability of your organization by recommending good changes.