WINNING WITH LOSS PREVENTION

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The retail industry is suffering an immense let down from the swift rise in shrinkage over the past years due to theft, vendor fraud, inventory error, and product damage. Business owners are frantic about its rate of progression and are rushing to acquire reinforcements for developing preventative measures that will decrease the chances of product loss. The results of ongoing shrinkage are damaging to a company’s chances of continued success.

Retailers are looking for faster ways to track their inventory and report product losses.

Shrinkage causes a chain reaction in which there are many repercussions, the most obvious being loss in revenue, leading to reduced profits. However, it also impacts the overall performance of the retailer and company’s morale. Frontline employees responsible for directly handling products and communicating with consumers, are no doubt likely to take the fault for theft or damaged products that might have occurred during their hours of work. Those who manage stock and inventory might be at the receiving end of a pointed finger when numbers don’t coincide. Employers lose trust in their employees, which often results in tightening of rules and decrease in their motivation to work.

As businesses try to compensate for their losses, increasing product prices is a quick solution for generating revenue. Though this might offer a company temporary sustenance, the long-term implications of dissatisfied consumers will circle back to further revenue loss. In an attempt to take a proactive stand against burglary and to protect their merchandise, companies are spending more on hiring additional security and acquiring technological resources for inventory efficiency. Digitalizing and automating tasks have enabled companies to perform with more efficiency and competency without errors, granting peace of mind.

Adastra’s Loss Prevention App

Businesses are quickly learning that real value is rooted in loss prevention; establishing ways to predict and prevent loss of products ahead of time to mitigate risk. One of the most common, and important ways of doing so, is by tracking and reporting inventory. Adastra recently developed a loss prevention app for one of our national Canadian retailers. The app digitizes the reporting process for documenting lost items, in instances such as fraud, incorrect inventory, damaged goods, etc, as seen in the first image.

Employees will have different capabilities in using the reporting app, depending on their roles.  For instance, store employees and district managers have access to create, edit and browse cases they have created or are within their specified district (exception of district managers who have access to all cases). They can upload and review photos and security video footage. Users who are identified as Admin, can action all of the above and delete cases, photos, and videos.

How It Works

Employees scan the barcode of a product, which in turn retrieves and stores the product’s information (name, price, product type, and quantity). The app further enables retailers to record information about theft incidents, which take place and upload videos of evidential footage. A report is then created with the incident date, product code, store location, quantity of products, and total cost of items taken or damaged. The reports can be saved within a historical log of future reports to refer to at another time for additional analysis, as seen in the third image. Adastra’s app reduces reporting time significantly, alleviating extra time to action the mundane tasks of manual scribing, our simple application will allow you to complete a full report in a matter of minutes.

After adapting Adastra’s loss prevention app, one of Canada’s leading retailers was able to see a significant decrease in their inventory loss. Being able to accurately track and record incidents, meant less time wasted in assumptions and speculations, and more room for productivity. Shrinkage will always be a matter of concern for retailers. However, with assistance from our app, businesses will stay updated and knowledgeable about their situation without the element of surprise and can prepare and plan ahead. Contact us for your mobile application needs.