Evans, Beck

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Examples of Operational Failures • The Lost Key • Problem: Stock is left outside the secure cage • Why? Because the key holder is on holiday and did not give the key to another member of staff • Why? Because they assumed there was another key • Why? Because this is what existing store procedures stated, but unfortunately this was not now being followed • Why? Because the store manager had not reviewed operating procedures for over 12 months • Why? Because the store manager was under considerable pressure to focus on sales • The Speedy Forklift • Problem: High levels of damaged stock in DC • Why? Because forklift truck drivers are regularly crashing into pallets of stock • Why? Because they are driving too fast • Why? Because their pay is determined by the number of pallets moved in a day • Why? Because this was seen as a good way to improve productivity
Examples of Operational Failures • Less Till Checking • Problem: Cash theft has risen at the till • Why? Because more staff are stealing from the till • Why? Because they think it is easy to get away with it • Why? Because the till is no longer checked after each shift only at the end of the day • Why? Because store operations reduced the number of till supervisors working in the store • Why? Because it enabled them to save money on salaries • Poor Packaging • Problem: A product is always out of stock on the shelf • Why? Because it is in the store room • Why? Because replenishment team cannot find it • Why? Because all packs seem to look the same • Why? Because there is no differentiation except by barcode • Why? Because the Packs were designed to suit DC operation
Page 1 and 2: Loss Prevention, Auditing & Safety
Page 3 and 4: Session Content • Getting to Grip
Page 5 and 6: Defining Shrinkage Shrinkage intend
Page 7 and 8: Cost of Shrinkage • Annual global
Page 9 and 10: Perceived Causes of Shrink Study No
Page 11: Operational Failures • any fault
Page 15 and 16: Identifying Operational Failures
Page 17 and 18: P&G - why do we care about shrink
Page 19 and 20: The “Remove Opportunity” Approa
Page 21 and 22: Retailer Case Study - Collaboration
Page 23 and 24: Sell More Lose Less Collaboration A
Page 25 and 26: Sell More Lose Less Identified Solu
Page 27 and 28: P&G Shrink Collaboration Approach

Evans, Beck

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