stop your inventory from sprouting legs 201205
TRANSCRIPT
Santa Fe Springs Chamber of Commerce
Security and Safety Briefing
Stop Your Inventory from Sprouting Legs –
Proven methods for better control of your
inventory.
Uncork Your Operational Bottlenecks
. . . BooST Your Bottom Line! TM
Theft Quiz – Part 1
• Percentage of employees who commit theft (Dept. of Justice)
• Cost to American companies annually (US Chamber of Commerce)
• Percentage of theft unnoticed (Chamber)
• Bankruptcies caused by theft (Employee Theft Solutions)
• 33%
• $20 – 40B
• 75%
• 33%
Theft Quiz – Part 2
2007 – Walmart employee theft outpaced
shoplifters by 50%
10-20-10
10% of employees will not steal no matter
the opportunity
10% will steal no matter what’s done to
prevent theft
80% will steal depending on how they
rationalize a given opportunity
Warning Signs
• Inventory discrepancies
• Empty boxes
• Claims of short shipments by customer
• Erratic or altered employee behavior
• Unusual traffic in/ around the area
Want to Reduce Theft? Focus On
These Key Areas.
• Physical Environment
• Software/ Technology
• Employees
• Procedures
Be Smart with Your Physical
Environment
Layout
Lighting
Entry/ exit
Fences/ partitions/ cages
Dock doors
Cameras/ mirrors
Let Your Software/ Technology
Give You Greater Control Install/ upgrade your ERP/ WMS/
MRP software
Launch a perpetual
inventory program
Conduct routine
physical inventories
Improve your security systems
Know Your Employees
Conduct background checks
Rotate responsibilities
Perform reviews regularly
Watch for shifts in attitude
Be aware of outside forces
Employees – Myths & Misconceptions
Myths and Misconceptions
Well-paid employees are less likely to steal.
Honest and loyal employees will report other
employees who steal.
Newer employees commit employee theft,
while senior employees can be trusted.
Procedures Offer Protection
Conduct regular cycle counts
Assure checks and balances are in place
Insist upon written Standard Operating
Procedures (SOP)
Employ slotting strategies
Control open access
• Increased profitability
• More reliable inventory accuracy
• Higher customer satisfaction
• Regain wasted time and resources
• Improved morale
Your Benefits from Being Proactive
More to Read on Prevention and
Security
Truck Parts & Service
“Safe & Secure” August 2009
http://www.truckpartsandservice.com
/apps/news/articletps.asp?id=80846
DRM Newsletter
“Theft Prevention” November 2009
http://www.diversifiedriskmanageme
nt.com/articles/theft-prevention.html
We’re Here to Help. Call!
Presented by Lee Schwartz, Principal
Uncork Your Operational Bottlenecks . . . BooST Your Bottom Line! TM
12257 Sunset Park Way
Los Angeles, California 90064
Phone: 310.450.2628
www.schwartzpro.com
© 2012 All rights reserved. Schwartz Profitability Group.
8138 2nd Street, Downey, CA 90241