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HOW TO MANAGE RETAIL LOSS PREVENTION WITH YOUR POS

Summary

iPad-based POS system –– even if you don’t realize it — you are closer than most to getting a firm handle on your retail loss prevention. And that’s good news, as every year, US retailers lose billions of dollars due […]

iPad-based POS system– even if you don’t realize it — you are closer than most to getting a firm handle on your retail loss prevention.

And that’s good news, as every year, US retailers lose billions of dollars due to theft. The opposite side of this coin however, is a robust loss prevention strategy will not materialize overnight. It takes work, commitment and time to implement best practices. But if you’re willing to commit, these 6 POS ideas can help simplify the procedure.

Keeping close track of your stock — what you buy, sell and’shed’ — is crucial in determining where the bulk of your retail losses stem from. Conducting regular inventory checks permits you to cross check with your POS system to ascertain whether your automatic reports fit your physical inventory counts. Depending on how much loss you experience, the frequency of your physical counts will vary. 1 way to help avoid loss from originating internally would be to rotate employees throughout different sections (or segments ) of your store. This will implement a system of check and balances to ensure all employee are held accountable for their actions and not given the chance to alter inventory data. To find out more on developing a solid inventory management program, check out our post on 5 Inventory Management Techniques to Adopt in 2016.

It is no secret that not all employees are created equal, or are equally as reliable. So until you get to know your employees (and perhaps even after), instituting tiered access levels is a must for your store. These amounts (e.g. cashier or manager logins) operate as controllers for who can perform certain actions such as conducting a cash-drop or supplying a discount. This helps to ensure that employees have access only to the information necessary for them to do their jobs. Employee reporting can also assist you in weeding out any sticky-fingered employees by highlighting suspicious patterns like excessive refunds or discounts.

Roam the Floor

Not all measures towards retail loss prevention involving your POS system are going to be high tech. Taking advantage of the freedom that your iPad cash register permits is often enough to deter theft. Conventional point of sales systems stored merchants tied behind the counter, allowing ample chance for shoplifters to discover a quiet corner and stash outstanding goods to a bag or their pocket. Freeing up your employees to roam the sales floor, however, allows them to participate more with clients, which is often the most crucial step in deterring theft.

Accept NFC Payment

Theft does not always look like your traditional shoplifter. Often theft can come in the form of credit card fraud and costly chargebacks to merchants. Based on the conditions of your EMV compliance, due to last October’s EMV liability change , you might be held responsible for any fraudulent charges which take place in your company. Adopting the most recent forms of payment technologies, however, can decrease your likelihood of accruing these fraudulent charges. Evolutions in the latest payment technology — such as NFC-enabled mobile wallets — add an additional layer of security and protection. This means card numbers are stored and sent as arbitrary numbers, or tokens, which are meaningless to fraudsters. Having the ability to accept NFC payments on your store is not only convenient for your clients, but protects your hard-earned cash in the procedure. Want to learn more about NFC technology? Check out our post on Why Small Businesses Should Enable EMV and NFC Technology.

Compare Your Sales by Shift Report to Inventory Shrinkage

Conducting random audits is also vital to baldness prevention. Pulling a sales by change report and cross referencing it to an impromptu inventory count, often allows you to pinpoint when inventory theft is happening. For example: if you conduct weekly stock counts and think of a discrepancy of 15 units between last week and this week’s count, you know your theft occurred within the previous seven days. This allows you the opportunity to assess your safety footage and try to pinpoint specifically how and if the theft happened. Reviewing a week of footage is less time consuming than reviewing a month. It’s also important that neither your employees nor your customers are aware of when these stock counts will occur. This prevents any internal or external thieves from altering their behaviour in an attempt to go undetected. To find out more about POS reports, read our post on The Top 5 Reports to Run with Your POS Software.

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If you’re not familiar with ‘X’ and’Z’ reports today is a great time to become acquainted. Though you always want to cultivate a sense of trust and respect with your workers, it is a good idea to check in on your money drawer periodically to stay on top of any possible issues. Whether that’s a case of human error or a more serious breach, it’s best to keep a close eye on your cash drawer at all times. So how do you do this you may be wondering? ‘X’ reports give you your cash drawer’s equilibrium at any given point in a day. They’re cumulative and do not reset to zero. ‘Z’ reports, however, are generated when you need to know the final tally of your cash drawer. When viewing both of these reports, be certain that the total listed matches the amount currently in your cash drawer.

There’s no silver bullet to retail loss prevention, but utilizing your iPad-based POS system is a good place to begin.

Sources

  1. https://www.connectpos.com/loyalty-programs-in-online-shopping/
  2. https://www.connectpos.com/what-are-consumer-apps/
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