How to Build your own Loss Prevention Audit

How to build your own Loss Prevention Audit

So you want to build an audit to see how your loss prevention program is working.

Fair enough, but before we go into it I would like to point out one thing. Build the audit from an operations perspective, and I’ll explain why.

If you review your LP program, and the program itself is not sufficient, you will be scoring well perhaps on a system that is simply not good enough.

Take it from this vantage point. If shrinkage happens because there are exceptions to “standard operating practice”, that is to say in a perfect world everybody would follow the rules, then build your audit around that philosophy.

Focus on these elements;

There are three main components to a retail business;

  1. Buy
  2. Move
  3. Sell

So break your audit into these three main categories.

Under any category, there are a variety of enablers to run your business;

  1. People
  2. Process
  3. Policies
  4. Equipment
  5. Systems

So now you have your skeleton!

In another article, I write about the risks, and how to address them. If you use this skeleton and apply the methodology of the risk assessment, you will be able to create your own audit, and review compliance.

Know where your gaps are before the results shock you.

If you are looking for an independent throw party to give your their objective opinion on where you stand, contact us and we can arrange for a free assessment and quote on an independent audit service that will estephen@blmorg.comnsure you are given the honest truth, the bottom line about how your management system is working, and where you have gaps that can lead to profit loss.

The Bottom Line is this;

Knowing where your business might not be complying is the first step to fixing the problem. How are you to know if you are not checking? Don’t rely on the results to tell you – it might be too late at that point.

 

Hello, I'm Stephen O'Keefe. The information you read here is intended to help businesses answer some of the tough questions about everyday events in the retail environment. After spending over 3 decades in this industry we've seen a lot!
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Stephen O'Keefe

About Stephen O'Keefe

As an independent consultant I leverage my experience and knowledge to help a number of companies achieve results. Clients range from non-retailers looking for guidance to serve their retail customer, to retailers looking for quick solutions to unique and costly problems, right to the Industry Association. Bottom line Matters!

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