Loss prevention: How to increase company's finanacial benefits?

1. HOW LOSS PREVENTION INCREASE A COMPANY’S FINANCIAL BENEFITS
To develop a program
around Loss Prevention
concept will help you to
reduce the opportunities
that these losses can occur
and more specifically, work
to prevent the loss rather
than solely be reactive to
them after they occur.
What does LOSS PREVENTION means?
Prevention of
loss of inventory
or monies.
Policies
Procedures
Business practices
When a retailer experiences a loss, they are losing
direct, to the bottom line profitability. Lost
inventory requires replenishment at a cost to the
retailer and lost monies cannot be replaced. The
cost of these losses goes direct to the bottom line
of a retail balance sheet causing lost profits.

2. HOW LOSS PREVENTION INCREASE A COMPANY’S FINANCIAL BENEFITS

3. HOW LOSS PREVENTION INCREASE A COMPANY’S FINANCIAL BENEFITS
What does LOSS PREVENTION means?
Loss Prevention is the concept of establishing policies, procedures and business practice to prevent the loss of
inventory or monies in a retail environment.
Three categories to be dealt with by professionals of loss prevention:
Internal
theft
External
theft
Administrative
failures
Administrative failures:
These failures include paperwork errors, these mistakes
can contribute upwards of over 15%-20% of a retailer's
annual loss. Ironically, most of the errors seen in retail are
employee-caused, thereby making a retailer's employee
perhaps the highest contributor to the business loss every
year!
Errors can occur anywhere - from checking in
shipments, to ringing on the register to transferring
merchandise. These errors can include the inaccurate
counting of merchandise to the improper discounting or
accounting of a sale or tender. Simple mistakes caused
over and over again have resulted in thousands of dollars
lost to a single retail establishment.

4. HOW LOSS PREVENTION INCREASE A COMPANY’S FINANCIAL BENEFITS
What does LOSS PREVENTION means?
Loss Prevention is the concept of establishing policies, procedures and business practice to prevent the loss of
inventory or monies in a retail environment.
Three categories to be dealt with by professionals of loss prevention:
External Theft
It is often caused by shoplifting, break-ins, robberies or
other acts by outside sources. Although it does not cause
as much loss overall compared to internal
theft, shoplifting and external theft most certain causes a
substantial amount of loss annually to the retail industry.
Controlling external theft requires a commitment to
educating your employees on good customer
service, awareness to the signs of a potential loss and
how to best protect the store and inventory against
external loss. This requires the establishment of
procedures and training in areas such as; shoplifting
prevention, robbery awareness, safety and how to handle
various situations dealing with people. What security
measurements you have in place within your retail
location can also greatly assist you in your efforts against
external loss (although not always).
Internal
theft
External
theft
Administrative
failures

5. HOW LOSS PREVENTION INCREASE A COMPANY’S FINANCIAL BENEFITS
What does LOSS PREVENTION means?
Loss Prevention is the concept of establishing policies, procedures and business practice to prevent the loss of
inventory or monies in a retail environment.
Three categories to be dealt with by professionals of loss prevention:
Internal (Employee) Theft
It is the largest contributor to loss for most
retailers, regardless of size or segment. Although some
may wonder why employee theft would be the largest
category of loss, hands down, every survey, study and
comparison across segments has shown time and time
again that those who steal from a business the most are
employees.
Employee theft occurs through many different methods.
From simple merchandise theft to collusion with friends
or other store employees, inventory losses by employees
can easily deplete your profits (and the merchandise
available for sale to customers). The point of sale
(register) brings with it many other forms of employee
theft. Simply removing money from the till to elaborate
"conversion frauds" that include refund, void or discount
thefts, point of sale theft can often cause a "double-dip
effect" where you lose money and inventory
simultaneously through a single incident.
Internal
theft
External
theft
Administrative
failures

6. • Reward your staff with discounts and bonuses. A fair and generous staff discount can
compensate for a low hourly wage or salary and can be very helpful in reducing
employee theft. Nevertheless, all staff checkouts should be documented and should
be checked out by someone else.
HOW LOSS PREVENTION INCREASE A COMPANY’S FINANCIAL BENEFITS
Some simple loss strategies
• The beginning of the prevention of internal theft the hiring process.
• You must carefully screen the people you hire. Collectively retailers do a poor job of
checking references and doing background checks. Therefore often retailers end up
recycling dishonest employees and end up hiring each others thieves. It is
recommended to check at least 3 or 4 past employee references.
• It is important to know the status of your inventory. A strict inventory control will
give you a good sense of both the level of shoplifting as well as internal theft.
• It is recommended to perform accurate physical inventory counts of four times
annually. This strategy sends to the employees a message of seriousness about the
prevention of theft.
Inventory Control:
• To be included on “employee procedures manual” or by developing an “internal
theft policy paper”.
• These procedures should include penalties for fraud and theft; make employees
understand the consequences of theft…
Policies and
Procedures:
Reduce temptation: • Develop policies to minimize opportunities from employees.
• One of the best methods of keeping your employees happy is to provide a positive
place to work.
Hire Smart:
Positive work
environment:
Staff perks:

7. Professional background.
Regional Loss Control Manager North, Central and East of Spain on retail company. Processes
quality analysis.
Security Manager on aviation cargo transportation and logistic.
Regional Loss Control Manager North, Central and East of Spain. (SPRINTER Sports & Fashion -
November 2012/ June 2013- Retail company.)
Security and Loss Prevention Manager (Integra2 -June 2010/March 201-: Logistics and
transportation company, belonging to GRUPO LOGISTA).
Freelance collaborator (ABS Quality and Evaluations, -March 2010/June 2010- Recognized
Consultancy Firm specialised on ISO regulation and official certification)
Security Officer (DHL Express -April 2008/December 2009-: Express logisitic and transportation
company.
Security officer, (DHL Aviation -February 2004/December 2009):
Polytechnic University at Madrid. (Auditor specialist, Audit, Security and Risk Management, 2011 –
2012).
Groups and activities: Company computing security analysis and planning, auditing different
computing spheres of the organization.
Univeeduction and sasco de Vitoria. (Master on Security Management).
Groups and activities: Security Management, 2007 – 2008
University of Europea de Madrid. (Security post-grade on Patrimony Protection, 2004 – 2005).
Groups and activities: Patrimony Protection course.
University of Salamanca. (Degree on English philology, 1994 – 1998).
ExperienceEducation
For more information visit: http://es.linkedin.com/in/miguelangelgonzalezmorinigo