LP Magazine

NOV-DEC 2018

LP magazine publishes articles for loss prevention, asset protection, and retail professionals covering shrinkage, investigations, shoplifting, internal theft, fraud, technology, best practices, and career development.

Issue link: http://digital.lpportal.com/i/1053401

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Page 18 of 85

The GII Mission Goodwill Industries International (GII) works to enhance the dignity and quality of life of individuals and families by strengthening communities, eliminating barriers to opportunity, and helping people in need reach their full potential through learning and the power of work. Southeastern Wisconsin Goodwill Industries International (GII) provides its 161 member territories with consultation services, but they operate independently. Each one has its own leadership and decides for itself how best to run its business. There is support in the form of leadership seminars, including a summer conference that offers loss prevention leaders from the different territories an opportunity to learn from one another, but each decides the extent to which loss prevention is a priority and how to go about it. "Each territory decides for itself whether or not to have a security team or a safety team and determining what size those departments should be in order to best support the mission in that community," explained Paul Stone. The core mission of empowering people through employment is at the foundation of all Goodwill organizations, but the mission services in support of it vary widely. Job training and placement services are common, but a Goodwill region may operate a laundry, a military-base cafeteria, a car wash, or a stenography college. The result is that Goodwill loss prevention operations—including risks, technology, and controls—vary significantly. Some take time to put UPC codes on merchandise, while some try to put goods on the floor within the hour. Some territories have mature LP departments, with all the bells and whistles of any major retailer. Some don't have an LP department at all. Stone now leads LP for one of the largest Goodwill organizations, a twenty-three-county territory that includes southeastern Wisconsin and metropolitan Chicago and has over 100 locations, including sixty-nine retail stores and more than 6,100 employees. He heads the retail asset protection and corporate security programs, operates a traditional safety operation, and oversees a medical services team. He leads business continuity and crisis management, and he's starting a fraud management unit. As part of asset protection, he has security responsibilities related to supply chain, warehousing, and e-commerce. While they do purchase some after-season goods from retailers, the bulk of items it sells online and in retail stores come from donations—and that's where the potential for loss starts. Employees sort the items, get them ready for sale, and direct merchandise appropriately, either to the secondary market, stores, online, or waste. "The goal is to preserve the revenue. We embrace the total loss concept and try to contribute in other ways, and cost control is certainly one," said Stone. Six months in, Stone thinks they're off to a good start. "We've worked with a number of our vendors and have gotten them to sharpen their pencils a little bit and have had some early success," he said, noting that he's looking for opportunities where LP can add value to an already-effective operation. "Our Goodwill team had already done a terrific job of maximizing donations. Very little ends up being waste." Although electronic article surveillance isn't seen as viable—slowing down operations too much—Stone has other LP technology tools in play, including point-of-sale (POS) systems with exception reporting and video surveillance. LP agents rotate throughout the territory's retail locations, and Stone is looking at increasing their visibility to improve customer satisfaction and retention and to prevent theft. "We're looking at more visible security agents versus undercover agents, and having them there at critical times, to further stop ticket switching." While the reward for thieves is generally lower, they employ price 17 LP MAGAZINE | NOVEMBER-DECEMBER 2018 "Every Goodwill on the planet should be profitable, but some struggle because they lack efficiency and execution—and because of theft." – Mike Keenan, Mike Keenan and Associates MISSION DRIVEN

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