New Loss Prevention by Beck, Adrian -- Read -- Imperial Library of Trantor

Scale of the problem The cost of managing shrinkage Indirect costs of shrinkage Retail risk and shrinkage Goods vulnerable to shrinkage – Hot products

Sensitivity to time Expectations of consumers Reprocessing Vulnerability of packaging or products

Hot products – Malicious and non-malicious Estimating the causes of shrinkage Getting to grips with shrinkage

5 Understanding Shrinkage

Malicious shrinkage

External theft – The ‘bogeyman’ of shrinkage?

Scale and cost of the problem A profile of offending External theft in context

Internal theft – The enemy within?

Scale and cost of the problem A profile of offending Internal theft in context

Inter-company fraud – Process driven loss?

Scale and cost of the problem Inter-company fraud in context

Process failure – The acceptable face of shrinkage?

Scale and cost of the problem Process failures in context

Understanding shrinkage

6 Traditional Approaches to Loss Prevention

A regrettable yet inevitable function Crisis driven shrinkage management Living in a data desert Loss prevention as security Policing retailing Working in isolation Myopic management Constantly searching for the ‘bogeyman’ of shrinkage Seeking the technological ‘fix’ Old loss prevention – Turning the corner

7 Operational Failure as a Driver of Shrinkage

Understanding operational failures Opportunity through operational failure

Situational crime prevention Rational choice perspectives Routine activities theory Opportunity makes the thief Responsibility and opportunity

Operational failure and malicious shrinkage Operational failure and non-malicious shrinkage Focusing on operational failures first Operational failure as a driver of shrinkage

8 Identifying Operational Failures

Key principles The Shrinkage Road Map

Step 0: Recognise that stock loss shrinks profit and sales Step 1: Develop a project plan Step 2: Map key processes and measure problem

Process mapping Measuring the problem Step 3: Analyse risk, identify causes and prioritise actions Cause and effect analysis Five Whys

Step 4: Develop solutions and prioritise actions Step 5: Implement solutions Step 6: Evaluate implementation

Road map case study Identifying operational failures

9 Introducing New Loss Prevention

Strategic factors Organisational factors Operational factors Strategic factors

Senior management commitment Organisational ownership Embedding loss prevention Strategic factors: the bedrock of success

Organisational factors

Loss prevention leadership Data management Operational excellence

Design & implementation Oversight Review

Prioritising people

Organisational level The loss prevention team

Collaboration

Intra-company collaboration Inter-company collaboration

Prioritising innovation and experimentation Communicating shrinkage Organisational factors: Developing a strategic framework

Operational factors

Store management responsibility

New loss prevention: The loss prevention pyramid

Setting the foundations Providing an organisational framework Operationalising shrinkage Operational failure and new loss prevention

10 Implementing New Loss Prevention

Breaking the shrinkage ‘life cycle’ Time for change Adding value to the business Loss prevention as agents of change Opportunity, shrinkage and operational failures Taking a journey on the Shrinkage Road Map Getting started: Tipping points and securing senior management commitment Collaborating on shrinkage The role of technology in shrinkage management Breaking the Shrinkage Cycle: The loss prevention pyramid New loss prevention

Bibliography Index