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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
Retail Solutions. He can be reached at
LarrySmartRetailSolutions.com or on
LinkedIn and his videos are available
on YouTube.
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.comContinued on page 54 ▶
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