LP Magazine

JAN-FEB 2019

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.

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34 JANUARY–FEBRUARY 2019 | LOSSPREVENTIONMEDIA.COM Working for a retailer or a manufacturer, let's call them shippers, you realize what you don't have but wish you had while putting out fires. Eventually, you get to a place in the shipper community where you know something bad is coming, and you can get ahead of it, but it's expensive, and teams are competing for capital dollars, and your expenses are budgeted with minimal flexibility. Also, as a retailer, you're trying to bring in your vendor community partners to solve for these problems you are facing. The solution providers have their niche and are unique to one another, and they don't typically work together. You try to connect the vendors to create one holistic solution. Fortunately, I was able to bring vendors in, walk them through the problem, educate them in detail of the problem, and start having them work with one another on select initiatives at their discretion. They weren't competing but were complementary to one another, and that was why it worked. The solution providers knew they were creating something where one plus one is four. But it's never easy. There are internal politics, financial demands and constraints, and multifaceted ways of looking at things that do not always align. On the vendor side, you are sort of a creative maverick, but you have to be with a company that is accepting of that profile. You have to say, "I'm from the retailer's side. These are the twelve things that I know have been broken for the last fifteen, twenty years. Here's how we tried to fix them. We were probably 40 percent, 60 percent of the way there. However, this is the total solution. And if we build it, then we can present it to the marketplace, and we will begin to gain momentum. But it'll be like everything else. It'll take a little while." If the solution provider is all in, then it becomes a fantastic journey for not just you but also the industry as they have been waiting. EDITOR: How do you see the asset protection world changing over the next few years? SCROFANI: This was a question asked of me about five years ago from someone in risk. Nothing has changed in my mind from five years ago to today. We have all seen security go to LP, LP go to AP, and now AP has become supply chain as stores become shipping environments. They're basically mini warehouses because now everyone's shipping out of a store. So AP will become a supply chain AP department. Then that will take one more step where you'll become a supply chain risk management department. At that point, you need to figure out where it all flows. It's going to go from the operations to finance and then audit. Risk at the end of the day is under finance. So I wouldn't be surprised if the evolution is probably from traditional security to true supply chain risk management finally feeding and reporting under the financial pyramid. EDITOR: In the past, we have predominantly seen store-line professionals move into the VP or senior level positions in asset protection. Do you see a day where the supply chain expert will become just as credible and may in fact move into those positions as well? SCROFANI: Absolutely. Omni-channel is forcing that to happen. There's now a global demand for a holistic view and understanding of how to manage people, process, things, and data under one's care and custody. I remember a big-box retailer some time back when their supply chain leader took on the senior role as a CEO. I absolutely can see it happening on the AP side because forty facilities and 600 stores equal 640 facilities that are shipping and receiving product. There is a human management piece in the THE EVOLUTION OF LP TO SUPPLY CHAIN OMNI-CHANNEL EXPERTS It's the right time for brick-and-mortar associates to start shoring up their glossaries because supply chain AP and store AP will all be talking the same language sooner or later. continued from page 33

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