2017Issue4_Alabama_v3_COVER_Proof

Smart ordering leads to excellent variety and smart Known Loss control. Ordering is key to profitable selling and smart inventory turns is key to controlling shrink loss and making cash flow efficient. By teaching, training and coaching principles of known loss control, every store’s profit will benefit. Easy to understand? Absolutely. Simple to consistently execute? Nope. Not at all, but they are proven to work every time. 4. Daily PerformanceVisualization and Team Action Smart technology will not reduce shrink loss. However, people using smart technology will. For too long, store operators and merchandisers have been victims to data and paper glut, waiting for the end-of-week or even end-of-period to see their results. We need to stop focusing on reports and graphs that provide analytics in the rear-view mirror. Rather, we should engage with and improve all vital key performance indicators every day. We can optimize practices by utilizing immediate performance metrics that discover and disrupt negative patterns before they result in missed budgets. When you put smart technology in the hands of store teams, you provide “disruptive intelligence” to reduce shrink, improve sales and will help to align Loss Prevention with Operations, CEO Goals and Corporate Objectives. By merging best practices, smart technology and operating standards, loss prevention can help store teams to out-perform sales and profit P&L expectations. ■ Larry Miller is President of Smart

6 Smart Take-Aways

1. Sales Matter: When Out of Stocks, sub-par Freshness and less than optimal Customer Service negatively impact Sales, it should be everybody’s concern.Why? Because Lower Sales = Higher Shrink. So, in the pursuit of profit through Shrink Loss Prevention, Sales Matter and Loss Prevention pros should never operate as if they are just along for the sales ride. Consistent execution of excellent shrink prevention best practices helps to grow profitable sales and makes CEO’s very happy. 2. Smart Ordering: Ordering for Optimal Variety and Turns leads to more sales and lower shrink. For this article; excellent Variety leads to increased sales and smart Inventory Turns encourage lower shrink loss, promotes employee productivity and improves cash flow. When Operations and Loss Prevention partner to see and optimize these profitability components through the same prism, great things will happen. 3.Tracking Known Loss: Tracking 100% daily Known Loss and Gross Margin erosion and acting with urgency to control Known Loss is a vital Operations and Loss Prevention best practice.While Known Loss programs are widely implemented, we have tracked 7 different variations in “how” they are implemented. 4. FRESH IS KEY is so many ways. Fresh departments are spreading their in-store footprint and importance to the consumer. Additionally, as on-line shopping expands, the first area for sales erosion will be in center store goods. This will make Fresh Depts. more important as a profit center.With this, shrink prevention for sales and profit optimization will gain importance. Every Loss Prevention professional should train to understand and support Fresh Dept. profit realization. 5. Smart Loss Prevention: Whether you call it Loss Prevention or Asset Protection, these business units should not just be about catching wrong-doers. More than 64% of store shrink is caused by a breakdown in store operations best practices. Loss Prevention should be a vital Operations Partner to assure the in-store behaviors of the 6 Vital Profit Drivers of Shrink Prevention. In this area, on-going education, training and consistent execution are key in creating a smart culture of control. 6. Choose Smart Technology: Smart technology will merge and interpret data from Sales, Known Loss, Out of Stocks, Ordering Efficiency, Cashier Mistakes and Theft to detect precise shrink causing behaviors. This all-in-one solution provides Daily (plain English) Action Alerts for both Loss Prevention and Operations and serves as a vital collaboration portal. For more information on Consulting & Training Services or Smart Technology to Run More Profitable Stores, Larry Miller can be contacted at (602) 448-8500 or Larry@SmartRetailSolutions.com

Retail Solutions. He can be reached at LarrySmartRetailSolutions.com or on LinkedIn and his videos are available on YouTube.

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