Improving Loss Prevention Business Strategies
No company wants to have assets lost, stolen, or damaged. That’s why the loss prevention business is so important. Every organization wants to protect themselves.
There are many ways to secure a business from theft, fraud, vandalism, equipment damage, and other incidents. Having a strong loss prevention strategy results in higher profits, more accurate inventory, a better workplace culture, and more. When a company can prevent loss and damage, it also improves customer satisfaction. Customers won’t have to deal with unfulfilled orders or late shipments caused by damage and theft.
For this reason, every business needs to have a loss prevention strategy that works.
What Does Loss Prevention Mean in Business?
In business, the term “loss prevention” refers to a set of actions that are taken to prevent the theft, damage, or vandalism of business assets due to incidents or accidents. Loss prevention aims to reduce preventable losses, those caused by inadvertent or deliberate human actions.
For example, a loss prevention business policy would be designed to stop incidents of shoplifting, theft, vandalism, fraud, employee misconduct, waste, and other such incidents.
What is a Loss Prevention in Business?
Business loss prevention focuses on improving profits by cutting down on preventable losses. This often includes both internal and external loss. An example of an internal loss is employee theft, fraud, vandalism, or other waste.
This could include directly stealing from an employer, for instance, but it could also involve non-malicious shrinkage such as discarding damaged stock rather than discounting it or returning it to a vendor for credit. The aim of loss prevention is to minimize financial losses.
What is a Business Loss Prevention?
While many businesses (such as retail stores) risk greater losses from internal loss than external loss, protecting against external crime is also a huge part of loss prevention.
Theft of business assets (merchandise, materials, equipment, etc.) as well as damage and vandalism caused by criminals results in significant losses for many businesses. Having a strategy in place to prevent these losses is crucial.
Loss Prevention Business Strategies and Tips that Really Work
When it comes to loss prevention business strategies, there are several ways for an organization to improve policies and reduce loss. Some tips include:
- Getting employees on board
- Getting employees to buy into loss prevention strategies is important. If they care about the success of the business and feel like part of the team, they’ll be much more likely to want to prevent loss.
- Rather than simply implement a strategy of monitoring and potentially punishing employees, show why loss prevention is so important and reward them when you hit certain loss prevention targets, for example.
- Having clear policies
- People are more likely to follow protocol when they fully understand it. Having strong access control policies, for example, will be a much bigger benefit to your organization if you’re able to clearly explain why these policies are in place and what employees need to do to keep the company safe.
- For example, don’t just tell them that it’s important to lock sensitive spaces when they leave the area. Show them what can happen if they don’t and how this will negatively affect the business.
- Keeping detailed records
- Accurately tracking inventory, keeping a detailed account of losses, and reporting on breakdowns in loss prevention processes doesn’t just help you become aware of where losses are occurring, but it can also help you modify policies to be more effective.
- Using strong deterrents
- Active security solutions deter criminals much better than passive ones. An alarm system, for instance, doesn’t do much to discourage theft. That’s because criminals know that they’ll be long gone before police can respond to an alarm.
- Choosing the right security tools are a critical part of loss prevention business strategies.
- Monitoring and Being Proactive
- Consider live remote monitoring at your property. This is a proactive security solution that uses cameras, speakers, and sensors to give agents the ability to watch over an entire property in real-time.
- This comprehensive solution lets you see everything that happens in a business. Agents can respond to theft, damage, or other loss immediately, using two-way speaker systems and other security tools. Since they can react to situations as they develop, the system is a much stronger deterrent.
- Monitoring systems can also generate detailed reports to help businesses succeed.
For more information on remote video monitoring, or to speak with a member of our team about loss prevention business strategies that can help your organization, please do not hesitate to contact us today.