Loss Prevention as a Service: (LPaaS)
Factors influencing shrinkage are continually shifting and evolving. Effectively mitigating and containing shrinkage is not a short-term activity carried out in isolation of other business processes.
Stonebridge Risk adopts a holistic strategy that ensures people, processes and systems are aligned and working in unison towards a common goal. Any protection strategy needs a structure and the ‘Loss Prevention Pyramid’ provides a framework for implementation. This strategy is aligned to international best practices and enable an organisation to benchmark their shrinkage statistics and identify key areas of improvement.
Loss Prevention as a Service (LPaaS) is a comprehensive end-to-end solution that is comprised of various components for those organisations that either do not have internal Loss Prevention Resources or who wish to outsource this function. Alternatively, the various components of the LPaaS can be deployed as stand-alone services. The foundation of LPaaS is a comprehensive Security, Safety & Loss Prevention Threat & Risk Assessment, also known as Third-Party Loss Prevention Auditing (3PLPA). Evaluating threats & risks associated with locations and environments, and the efficacy of processes, systems and internal controls. The Threat & Risk Assessment report will identify the gaps that exist between the actual state and best practice and will make recommendations for improvement. Once recommendations are agreed with management, the threat & risk assessment is translated into the Loss Prevention Strategy.
Communication & Awareness Programme:
Communicating management expectations and creating and maintaining awareness of key loss prevention issues requires constant attention. Stonebridge Risk has developed a number of communications campaigns that can be customised to address key issues affecting your organisation. Our UK and Middle Eastern experience ensures we provide relevant, relatable and easy to understand media in multiple languages.
Loss Prevention Store Audits:
A critical component of a successful Loss Prevention program is the compliance and adherence to policies and procedures throughout an organisation. The most effective way of measuring this is through regular store audits. Industry studies, along with our own results, have shown that retailers who conduct multiple onsite audits in their locations annually have a lower shrink rate or known loss than those who rely purely on system data to evaluate these measures. Stonebridge Risk's store audit program is designed to bring a focused approach to Loss Prevention across the organisation and are customised to fit your culture, your processes and your Loss Prevention objectives.
Preparation of CCTV Evidence:
CCTV systems are extensively utilised by retailers as a deterrent to monitor employee and customer activities and to provide historical evidence of any illicit behaviour that may be presented in a court of law or at internal disciplinary proceedings. However, people with criminal intent will also try and conceal their actions whilst the surrounding activities will often distract attention from a specific incident. Stonebridge Risk understands these complexities and has the capability to enhance, organise and display existing video footage so that key events are highlighted in a logical sequence. We also work with our clients to prepare to effectively present such evidence to management at internal disciplinary proceedings or to Law Enforcement Officers when lodging criminal charges.
Formulation & Implementation of LP Strategy:
The Loss Prevention Strategy is influenced by the findings of the threat & risk assessment and has the key aim of mitigating risk of shrinkage throughout the supply chain. The core component of the strategy is the Shrinkage Charter which broadly defines the shrinkage valuation methodology, key performance indicators, benchmarks, and resources required to mitigate shrinkage. The Shrinkage Charter serves to demonstrate senior management commitment to mitigating shrinkage in a systematic manner. Once the Shrinkage Charter is compiled, Stonebridge Risk converts this into tangible actions that are incorporated into a roadmap used to track implementation of the broader strategy.
Currently, most retailers utilise external 3rd party security service providers to man their CCTV Control Rooms. In most instances, these staff do not possess the required skills or competencies to perform this function effectively. Further to this, the same company is often contracted to provide physical security on the floor and thus they do not raise issues that might highlight their own inefficiencies; or where they could be implicated in collusion or be held liable for resultant losses. Outsourcing this function to an independent third party provides an additional layer of independence and ultimately, assurance that the potential for collusion is further mitigated. Stonebridge Retail Loss Prevention can provide qualified and experienced CCTV Monitoring Officers to review CCTV footage remotely from our central control room or alternatively to review CCTV systems on site.
Stock Loss Action Plans:
Stonebridge Retail Loss Prevention's shrinkage mitigation programme will highlight those stores that deviate from the expected shrinkage or audit results. We would look to work with the client to develop store-specific stock loss action plans which ensure that a higher level of focus is placed on particular processes or high- loss merchandise. Countermeasures would include increased visitation of these stores, refresher training and employee screening where appropriate.