Unfortunately, this approach to shrinkage reduction, is most often in vain. There is without a doubt, no correlation between the introduction of a security officer and shrinkage reduction.
The saddest part about this kind of security programme is that more often than not the security officer earns less than the lowest paid employee in the store. Further, they are not trained or qualified to provide a service that will be cost-effective in the overall ‘Shrinkage Reduction Programme' and in line with each retailers expectations. The problem is then exacerbated by retailers accepting ‘lower-grade' officers due to budget constraints.
Carte Blanche recently highlighted that industry training certificates can be bought from certified training centres, qualifying individuals to receive PSIRA Certificates without being trained at all.
The final result is that retail and commercial companies change their security companies every 12 to 24 months. Officers are caught stealing regularly and syndicates are more and more able to bribe officers to turn a blind eye.
According to Errol Ashman, Chairman of Lodge Holdings, international loss prevention specialists, the age of specialisation is here. He says, “With the introduction of system checkers into many of the retail chains to double check all goods received, the losses via the back-end have been considerably reduced, as have the overall shrinkages of the stores.
"With the system checker principal, the account is only paid if the receiving clerk's signature and the system checker's signature are on the delivery documentation. The result is that there is less chance of collusion and very little chance of any documentation being put through the system without stock coming into a store.”
Further specialised interventions include maximising the use of technology, such as CCTV. Ashman explains, “Instead of relying on the fact that one has technology, we have found ways to maximise the output.
"Using CCTV monitoring controllers, not as just another guarding function, these specially trained individuals work with well trained plain clothes detectives to operate this highly technical and very expensive equipment, getting the best out of the investment."
Alex Robinson, MD of Lodge adds: "With the growth of 'Organised retail crime', we have now also introduced 'Hot Product Controllers', used to control the movement of highly desirable, regularly targeted merchandise from receiving, to high risk cages, to the trading floor. The success of this programme has been overwhelming, reducing losses by millions of Rands, in numerous retail chains."
It would seem that a move away from the ‘Guarding Mentality' to a more specialised approach to security, is definitely a move more and more retailers should be making at a time when crime is becoming more specialised. Retailers can certainly benefit from spending the limited available budgets more wisely.
According to Ashman, "Shrinkage reduction/security programmes are about ‘managing' not placing Security Guards. While there will always be a place for Security Guards, their presence is more about protecting people and deterring petty thieves. They will never be the answer to reducing shrinkages or dealing with organised crime. Until security and loss control expenditure is seen as an investment which has a return, retailers will always treat this as a grudge spend and ultimately 'reap what they sow'."
