What Is Loss Prevention? Tips and Examples

Here are some proven loss prevention strategies that will protect your business and help develop a culture of safety in your workplace:
  • Leverage Your Employees and Encourage Buy-In. …
  • Have Clear Policies. …
  • Use Clear Communication & Training. …
  • Update Accounting. …
  • Automate Inventory Controls. …
  • Use Strong Deterrents.

Innovative Loss Prevention Tactics

The importance of loss prevention

Loss, also known as shrinkage, can be a problem in a variety of industries, but it most frequently affects and threatens retail businesses. Loss prevention should be incorporated into your company for a variety of reasons, the main ones being that it:

What is loss prevention?

Loss prevention techniques used by businesses to protect their bottom line are a common aspect of retail. Loss prevention, also known as retail asset protection or profit prevention, refers to any organizational action taken specifically to reduce avoidable losses. Any expense incurred by the business as a result of intentional or unintentional actions by clients, staff members, or other people who interact with the enterprise is referred to as a preventable loss.

The following are the most typical reasons for profit loss in a business:

Tips for loss prevention

Throughout your shift, there are several things you can do to help prevent loss. Consider the following advice as you work to maximize loss prevention for your business:

Strategies for loss prevention

You can implement the following strategies into your business specifically for the purpose of loss prevention:

Utilize physical security throughout your store

Physical security that is strategically placed throughout your store can help not only prevent theft but also enable you to identify the offender in the event that it does happen. Security cameras are one of the most widely used types of physical security. You should install security cameras at your store’s entrance, in the delivery and loading zones, all throughout the space, and on each POS terminal.

For additional physical security, you might also think about hiring security personnel. Security personnel provide an additional layer of deterrence that reduces employee and customer theft. Another instance of physical security that can support your loss prevention efforts is an alarm that is installed and activates whenever a customer or employee tries to leave with an unpurchased item.

Invest in POS systems with additional security features

If there is a loss, a POS system with enhanced security features can help stop it and give management useful data to help them identify the cause of the loss. A management interface that requires employees to log in and out is a common component of POS systems with additional security features. This interface allows management to see who was using the register at specific times. If theft happens, it’s simple to check the POS system to see who was using it, and you can then use this information to determine what exactly was taken.

Incorporate loss prevention training into the onboarding process

Include loss prevention training in your new hire onboarding process as another excellent loss prevention measure. Additionally, you can require current workers to regularly take part in additional loss prevention training at various points during their employment. What to do in situations involving loss or theft, the business’s policies on loss prevention and theft, and how to handle returns or defective goods are a few examples of what should be covered in loss prevention training. Additionally, make sure the employee is familiar with how to operate the POS system and is aware of how it functions in terms of loss prevention and security.

Use electronic article surveillance (EAS) to minimize product theft

Electrical article surveillance (EAS) is a technique that involves tagging items with an EAS device that sets off an alarm if a customer or employee tries to leave the establishment without having it removed. When checking out, the EAS device should only be removed after an employee has rung up the item in the POS system.

Keep track of loss trends

Monitoring loss trends in your business on a regular basis is another effective loss prevention measure to put into practice. You can identify where losses are occurring and who might be at fault for the losses by regularly examining loss trends. Many losses are small enough to go unnoticed for several weeks or even months. Maintain records of loss information and conduct periodic audits on any accounts that have been flagged for unexpected losses.

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