Retail Loss Prevention: Inventory Control and Prevention

This report delves into the critical aspects of retail loss prevention, focusing on the challenges of controlling inventory within a warehouse environment. It highlights the difficulties stemming from the chaotic nature of warehouses, the constant movement of goods, and the presence of numerous individuals and potential hiding places. The report then outlines a 'Top 10' list of theft prevention measures, offering practical strategies to mitigate losses. These strategies include enhancing lighting, implementing robust lock and alarm systems, utilizing surveillance technologies, rotating personnel to deter collusion, limiting shipment hours, establishing clear vendor policies, conducting spot checks, developing procedures for over-shipments, inspecting vehicles, and maintaining strict control over vehicle keys. The report provides a comprehensive overview of the multifaceted approach required to safeguard retail inventory and minimize losses within a warehouse setting.

Running head: RETAIL MANAGEMENT 1
Retail Loss Prevention
Jacquelin O’Kane
Ashworth College

RETAIL MANAGEMENT 2
Retail Loss Prevention
Why is it difficult to control inventory in a warehouse environment?
Maintaining control over warehouse merchandise is exceptionally difficult. Warehouses are
chaotic, large, noisy buildings that house a constant stream of individuals operating forklifts,
carts, and motorized pallets as they move case after case of merchandise from one place to
another. Some of it comes in, some goes out, and a lot of it just seems to go around and around
on the tow cart and conveyor systems forever. There are hiding places galore. Loading docks are
busy with truck being loaded and unloaded at the same time, often with noncompany drivers all
clamoring for attention and priority handling, supervisors are hard put to maintain order, let
alone watch for theft. (Loss Prevention in the Retail Business pgs. 151,152)
“Top 10” theft preventions points and how I would institute them.
1. Outfit the warehouse with sufficient lighting.
Regardless of warehouse size or number of employees, warehouse should have adequate
lightning inside and out. Thieves prefer dark locations.
2. Make sure lock and alarm systems are adequate.
Again, regardless of warehouse size and number of employees, the warehouses should have a
variety of locks and alarms. Expensive items should be locked in another caged area if possible.
Locks keep honest people honest.
3. Use convex mirrors and closed-circuit television systems.
These will let employees and vendors know that they are being watched even if they are not in
direct site.
4. Rotate personnel and duties occasionally to discourage collusion.

RETAIL MANAGEMENT 3
This would discourage employees from developing a pattern to steal. The more employees
employed would be a plus in this situation because they wouldn’t know until possibly the day of,
what their duties are for the day.
5. Limit the hours that shipments can be received and signed for.
The proper personnel needs to be available and have adequate time away from other duties to
properly check in goods.
6. Establish firm policies regarding the actions of vendors.
No vendors should be allowed to walk through warehouse, and no employee should be allowed
to develop friendships.
7. Make frequent spot checks of both vendor deliveries and returns.
With vendors not knowing when they will be spot checked, this will aide in the prevention of
most vendor theft.
8. Develop procedures for handling over-shipments.
A proper computer program would need to be made so that checker could immediately go to
computer and notify companies that there is an over-shipment that is being returned.
9. Periodically inspect tractor and trailer contents.
Occasionally the trailers and tractors should be spot checked and if something is found it should
be noted with last driver’s name.
10. Maintain strict control over all vehicle ignition keys.
All keys should be locked in an area that only a supervisor or manager has a key too. When keys
are given, it should be documents who has what key to what truck. (Theft prevention tips-Loss
Prevention in Retail Business pgs. 162-163)