LP Magazine

MAY-JUN 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/978254

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SECURITY AT THE SOURCE 43 LP MAGAZINE | MAY–JUNE 2018 Finally, the LP team members worked alongside the LPRC to create a training module on inventory shrink for merchants that is hosted on the company's online learning center. "So now if you are hired into Lowe's as a buyer, or need occasional refresher training, the course work is part of your training so that you learn fundamentals about inventory shrink and, more importantly, what you can do to reduce it." The merchant relationship has also been a focus for the AP team at Walgreens. "One of the things we've done effectively to work with merchant teams is to integrate shrink and waste metrics into the process for analyzing performance and for which products to carry," explained Bill Inzeo, director of asset protection solutions. "So it's no longer just looking at sales and gross. Shrink and waste are now included in that decision-making process." To arrive at the right merchandising strategy—one that is both driving sales and reducing loss—information sharing between merchants and asset protection should be a two-way street, advised Erik Buttlar, vice president of asset protection at Best Buy. Just as merchants need to understand protection strategies, AP needs to appreciate the sales imperative. "You don't want to unnecessarily slow down transactions or make them more complex," he said. "It's not doing things to the customer but for the customer." Efforts by LP to strengthen relationships with merchant teams surely please Professor DeHoratius. She coauthored a report for the Retail Industry Leaders Association (RILA) on the subject, Opportunities & Challenges for Engaging Merchants in the Protection of Retail Assets. [For an excellent summary of the study, see Chris Trlica's story in the September– October 2015 issue of LP Magazine.] Among other important lessons, DeHoratius said that her research has shown that an LP approach strictly focused on getting manufacturers to put tags on high-theft items can miss larger issues at play. "Our research has shown that many discrepancies in the inventory record are not solely attributable to theft. Instead, it's about transaction errors, errors in delivery orders, and other operational issues that arise," she said. Broadly, her research has led her to believe that LP discounts nonmalicious causes of shrink, while shrink caused by theft is overemphasized. "It's not all about locking up products," she advised. "Solutions should be focused on 'how do I prevent the discrepancies that are impacting operations and sales?'" Optimizing operational efficiencies Integrated IoT connected hardware, cloud based sofware and consumables NRF PROTECT 2018 BOOTH# 1207 Bill Inzeo Erik Buttlar

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