Staff Editor — Page 332

Checkpoint labels create win, win, win, win for retailers

October 1, 2010 by Staff Editor Leave a Comment

Using checkpoint labels with your checkpoint security system delivers a quadruple win situation in the battle against retail theft.

(In no particular order) we have win number one. The reduction in inventory shrinkage will translate over to boosted profit margins. Losing inventory directly affects net margins. A $10 item lost will take $200 to replace in a 2% net margin situation. Keep that $10 item and you just added $200 to the available profit & net margin.

Second win on the list would be less retail theft means more stock on the shelves available for sale. Retailers often do not consider how using products such as checkpoint security tags deliver a measurable increase in sales. Price Waterhouse Coopers recently studies a chain of supermarkets over a fourteen-week period and found that after the implementation of the checkpoint security system the net sales increase by over 9%.

Again in no particular order let’s take a look at another win; sending shoplifters (thieves) elsewhere and keeping them out of your store creates a better environment for staff and customers.

Last but certainly not least the presence of the anti theft devices means less retail theft, reducing shrinkage. Typically retailers see a reduction in inventory losses of over 50% when implementing systems such as a checkpoint security system.

For more information on using anti theft devices go to: checkpoint labels

Filed Under: antishoplifting Tagged With: anti-theft devices, Checkpoint labels, checkpoint security system, Checkpoint security tags, retail theft

Checkpoint security tags send shoplifters away

October 1, 2010 by Staff Editor Leave a Comment

Using anti theft devices and loss prevention security such as checkpoint security tags sends a message to shoplifters that studies show will simply send them elsewhere to unprotected targets. This is a win, win, win, win situation.

Win number one; the presence of the anti theft devices means less retail theft, reducing shrinkage. Typically retailers see a reduction in inventory losses of over 50% when implementing systems such as a checkpoint security system.

Win number two; the reduction in losses will translate over to boosted profits. Losing product directly affects net margins. A $10 item lost will take $200 to replace in a 2% net margin situation. Keep that $10 item and you just added $200 to the available profit & net margin.

Win number three; less retail theft means more stock on the shelves available for sale. Retailers using products such as checkpoint security tags see a measurable increase in sales. Price Waterhouse Coopers recently studies a chain of supermarkets over a fourteen week period and found that after the implementation of the checkpoint security system the net sales increase by over 9%.

Win number four; less riff raff in the store. Sending shoplifters elsewhere and keeping them out of your store creates a better environment for staff and customers.

For more information visit: checkpoint security tags or call Loss Prevention Systems at 1-770-426-0547

Filed Under: antishoplifting Tagged With: anti-theft devices, checkpoint security system, Checkpoint security tags, retail theft

Background Check Results are Here! Now What?

October 1, 2010 by Staff Editor

You’ve received your applicant’s background check results and he has a record. Now you have a decision to make.

Hopefully, not what a municipal government here in Georgia did when they received the results for one of their candidates.

This individual, hired in 2006 as a laborer, had a rap sheet that revealed a total of 23 arrests, beginning in 1986; 10 of these were felony arrests; 3 times he his parole was revoked and he was sent back to prison. His last arrest prior to being hired by the city was in 2004, when he was sentenced to 3 years in prison, but was paroled in July 2006.

After being hired by the city in December, the employee was soon transferred into the utilities department and was given a truck and a route read customer’s utility meters.

As it turns out he was doing more than reading meters. Police arrested him while on his route for possession of cocaine with intent to distribute. He had $1600 in cash on him at the time.

So this employer had adequate warning to keep an eye on this employee, but gave him the means to continue his criminal career.

How does an employer decide who to hire or not to hire based on the results of a criminal background check?

The test is usually, “Does this person’s record have an impact on the job he is expected to do?” Agreed that the city might have had a difficult time filling the position of laborer with anyone that didn’t have some sort of criminal record. The question then becomes, should that person have been promoted/transferred into the utility department? The answer in this case was obviously “No”.

Other examples:

Violent crime convictions for an employee with customer or employee contact?

Financial crimes for bookkeeper?

Shoplifting crimes for a retail store employee?

Driving Under the Influence arrests for a delivery driver?

In these examples, the search should probably continue for your new employee, but you should always weigh the relevance of the criminal record check with the job to be performed, and not preclude an individual just because he has a record and has disclosed it honestly on his application.

To contact a background check expert, call 770-426-0547 or click here.

Filed Under: Uncategorized Tagged With: criminal background check

Consider a Corporate Fraud Investigator for your white collar crime dilemmas

October 1, 2010 by Staff Editor Leave a Comment

As a Corporate Fraud Investigator, I’ve spent countless hours looking at journal entries, profit and loss statements, balance sheets, ledgers, investment scenarios and countless other corporate level sales, profit and investment tracking practices. And forensic accounting, a major tool in the Corporate Fraud Investigator toolbox, is a useful asset to have. Understanding how and why a business accounts for their practices is the key to performing a solid fraud investigation.

As an example, let’s say inventory time is coming around. The public company you work for has about 7 stores. Pretty moderate sales volume, your company is growing. Now, as the inventory numbers start coming in, your corporate inventory guy starts to worry about the shrink numbers in one of the stores. He directs the in-store manager to report no more than $30k in losses on a sales volume of $1million. In reality, the store lost $50k in inventory. The manager is told the other losses will be poured into some other (bogus) account. The manager, following direction of the corporate office shows $30k in inventory loss and the corporate office books him for $30k. The other $20k gets put into a gross margin fund at the store level or is dismissed. Either way, bogus!

Now the outside investors see these shrink numbers and think, WOW, great news.

As a Corporate Fraud Investigator, you hear word from the loss prevention agent at a particular location about the inventory process. You start your investigation and the unraveling begins.

A good Corporate Fraud Investigator can be the best friend of the organization. Keeping a watch on fraud, waste and abuse and knowing when to react will ensure your business stays a business for many years to come.

For more information visit us at corporate fraud investigator or call us at 1.770.426.0547

Filed Under: Uncategorized Tagged With: corporate fraud, corporate fraud investigator, white collar crime

Corporate Fraud Investigation – Integrity at the highest levels

October 1, 2010 by Staff Editor Leave a Comment

Executive leadership is not exempt from Corporate Fraud Investigation. The Sarbanes-Oxley Act of 2002 details the audit and management procedures of the corporate environment and is a reference used in Corporate Fraud Investigation.

Corporate Fraud can completely decimate a company. One need only look at the early 2000’s and the likes of Enron, WorldCom, MCI and others. These companies dissolved as the result of Corporate Fraud and the Sarbanes-Oxley Act was created.

Corporate Fraud Investigation looks at all aspect of fraud, not just at the executive level, but at all levels. A story that floats around most loss prevention, and investigation firms and organizations is of a lone accounts payable employee that took advantage of a payment opportunity using her husband and his construction business.

This accounts payable employee working out of the corporate office was directed to cut a check for payment of construction services performed at one of the retail locations. She created a check for about $14,000 and mailed off the check to the construction company. Quickly, she saw an opportunity to make some fast cash and decided to send a second check in the amount of $14,000 to the same construction company. She then calls this construction company and tells them that her office “accidentally” sent a second check. She asked the construction company to send the second check back to her attention. Upon receipt of the check, the accounts payable employee had her husband endorse the check and deposit it into his business account. Later they planned on transferring the money to their personal account.

Had it not been for the thorough investigation, this accounts payable employee would have been $14,000 richer. Instead, after a forensic accounting analysis, the employee faced prison time.

Corporate Fraud is a covert business. It can be controlled with a proper oversight committee and a checks and balance system involving Corporate Fraud Investigation.

For more information visit us at corporate fraud investigation or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: corporate fraud, corporate fraud investigation

Using security tags on clothes to boost profits

September 30, 2010 by Staff Editor

Security tags on clothes not only deter shoplifting and prevent theft reducing shrink numbers, they also will boost net margins significantly.

Studies show that retailers who utilize security tags on clothes as part of an EAS (Electric Article Security) system see a significant reduction in shoplifting attempts and less shoplfter traffic in the stores because they simply move on to ther unprotected store. The Checkpoint Systems manufactures the world’s marketshare leading EAS system. These systems include pedestal antennas installed at doorways. These antennas will detect security tags on clothes and alarm the system when the clothing security tags are in the field of the antennas, which naturally will cause shoppers to pause or stop allowing the staff to address the issue.

Back to boosting profits, let’s say we have a boutique clothing retailer selling $1million per year. Most likely if they have no loss prevention training or staff in place and are not using security tags on clothes they are losing about 5% to 10%. So that number would be on the low side $50,000 per year in merchandise. Typically that retailer will have a net margin of 2% to 5%. Take the high number here and the net profit is $50,000.

It is typical to reduce shrink by at least 50% when going from no system in place to a loss prevention system in place. So if the retailer goes from 5% shrink to 2.5% shrink, they add $25,000 to the net profit margin, whci is a 50% increase in net margin!

And the cost to install the Checkpoint system with security tags on clothes is a fraction of those number bringing a return on investment in a few months.

Fore more information visit: security tags on clothes or call 1-770-426-0547

Filed Under: Uncategorized Tagged With: Clothing Security, clothing security tags, security tags on clothes

Think you need a Loss Prevention Agent?

September 30, 2010 by Staff Editor

Retailers are in the same group as most businesses today having to cut back staff to be more cost competitive which has made subcontracting a loss prevention agent an attractive alternative.

A loss prevention agent (loss prevention consultants, loss prevention investigator) can fill the gap that is generated when staff cuts make managing losses more difficult than ever. Short sidebar- Organized Retail Crime (ORC) is on the rise, big time probably due to the combination of a down economy driving more people to desperation and what looks like (to the shoplifters) a prime opportunity of practically unmanned retail stores making shoplifting easier than ever.

A loss prevention agent will be able to conduct an audit taking a look at many different areas where losses can occur. After the information is gathered a report will be generated outlining vulnerable areas/ risks for loss whether they be inventory shrinkage, administrative error potential, vendor fraud potential or cash losses. Even the potential for fraudulent accident claims by visitor in the building…such as slip and fall claims that are very popular in supermarkets.

Also included in the report will be a recommended action plan to correct the issues found. This allows the owner manager to work with the loss prevention agent to prioritize solutions in a way that will work with the budget.

Reducing inventory shrinkage or overall losses (shrink) by 50% or more is common. Those numbers result in doubling net profit margins.

For more information go to: loss prevention agent or call 1-770-426-0547

Filed Under: Uncategorized Tagged With: loss prevention agent, loss prevention consultants, loss prevention investigator

Retail loss prevention initiatives necessary for success & profit

September 30, 2010 by Staff Editor Leave a Comment

By definition, retail loss prevention is a type of private investigation into larceny or theft. It is police and detective work for the private business instead of the general public. Businesses that do not take into consideration basic loss prevention and asset protection procedures will not survive.

The focus in retail loss prevention is on shoplifting, fraud and employee theft. According to the 2006 National Retail Security Survey, shrink is divided into five categories:

46.8% Employee theft
31.6% Shoplifting
14.4% Administrative error
3.75% Vendor error
2.86% Unknown error

To understand retail loss prevention , a business needs to understand shrink. Shrink is merchandise or assets that are unaccounted for – and the loss is usually identified during an inventory. A business’s books will tell how much merchandise the business is supposed to have, based on receivings, shipments, etc. The difference between the books and what merchandise is actually there is called shrink.

A business must analyze its operations in order to identify factors that contribute to loss. Strategies must then be implemented to combat shrink. As illustrated in the statistics above, employee theft creates the most loss for a business and has to be taken into consideration when creating a program to reduce shrink. Many businesses only focus on shoplifting as a contributor, but employees can actually steal much more.

Retail loss prevention is a necessary effort in order for a business to be successful and profitable.

For more information contact us: retail loss prevention or call 1.770.426.0547.

Filed Under: Uncategorized Tagged With: loss prevention, Retail Loss prevention

Store managers ask, “How can I prevent shoplifting?”

September 30, 2010 by Staff Editor Leave a Comment

Many times I have been asked by a manager or store owner, “how do I prevent shoplifting?”

According to the 2010 University of Florida National Retail Security Survey, retail stores lost $11.7 billion to shoplifting in 2009. As organized retail crime (ORC) continues to grow, one thing has become clear, you must be proactive to prevent shoplifting and grow your net profit. One of the easiest ways to prevent shoplifting is to know your inventory and to educate your employees. I was recently in a large big box store. Utilizing the shrink by sub-class stat report, I discovered that the store had lost over $12,200 in Crest White Strips last inventory cycle. When I asked the Health and Beauty Department supervisor what her highest shrinking item was, she hadn’t a clue. As we walked the sales floor, I counted four different types of Crest White Strips on the shelf, totaling 38 boxes and roughly $1,020 in that product.

A 10 minute talk with that supervisor will save that store thousands next inventory cycle.

These approaches will help prevent shoplifting:

1. Use checkpoint security labels on high theft items (such as white strips). This is a deterrent even if you don’t have Electronic Article Surveillance (EAS) at your doors.

2. Limit your inventory of high theft items (such as white strips) on the sales floor. ORC units strike quick and are professional thieves. If you have 38 boxes out, 38 will be gone in one hit.

3. Conduct weekly inventory cycle counts of your three highest shrinking items (such as white strips). If you see losses after tagging, and after limiting what is available on the sales floor, it may be an internal theft issue and lock up the high theft item in your stock-room. Notify a Loss Prevention Investigator immediately.

4. Educate all employees in every area about the top 3 shrinking items in their areas. If they see customers in that area, superior customer service is in order. Make their presence known and prevent shoplifting!!

For more information visit: prevent shoplifting or call 1.770.426.0547

Filed Under: Uncategorized Tagged With: Prevent Shoplifting

Most retail shrinkage from these top three areas

September 30, 2010 by Staff Editor Leave a Comment

Retail shrinkage is measured anually by The University of Florida’s National Retail Security Survey (the holy grail of the studies) and the top three in order greatest to least are; employee theft, shoplifting and administrative and paperwork error.

Many retailers would say they believe shoplifting to be their number one source of inventory shrinkage and respond with “I trust my people.” However; the UF survey shows that 43% of all retail inventory shrinkage is due to employee theft. This accounts for $15.5 billion in annual inventory loss. This makes employee theft the single largest form of larceny in the US, no other form of larceny costs Americans more money.

Shoplifting is the second largest form of retail shrinkage. Shoplifting accounts for 36% of total retail inventory loss totally $13 billion in a single year. There is a staggering rise in organized retail crime (ORC) that is potentially underestimated and can involve employee collusion.

Administrative and paperwork errors hit the list at number three and account for 15% of annual retail shrinkage. Naturally, the best way to solve these problems is to prevent theft from occurring. Identifying best practices of operation and incorporating installed loss prevention security will prevent theft and inventory shrinkage and boost bottom line profits.

To learn more visit retailshrinkage solutions

Filed Under: Uncategorized Tagged With: retail shrinkage