The inventory is the lifeblood of any retail company. Too much and your money just sleeps. Too little and you could lose customers. That’s why it’s important to have the right amount of inventory at any given time. However, are you keeping your stock safe? Do you have a system in place to track, maintain and guard it? A lot of entrepreneurs think that when they put their inventory in a warehouse and put a lock on the door, then their stock is safe. Wrong! You need security people to prevent problems that can affect your employees, your company, and your customers. You also need the help of technology to ensure that your inventory and people are safe. Four big problems cause companies millions of dollars each year; businesses can prevent them by having the right security team in place.

Prevent Employee Theft

Install cameras that your security personnel can monitor easily. Have eyes everywhere. With the coming holidays, you will see a surge in customers and sales, and you will need to hire extra employees. Because the risk of employee theft is higher with new workers, they will need guarding. Some companies rush through the hiring process during the holiday season, and they overlook important aspects such as background checks, references, etc. It’s easy to get caught up in the rush of the season and not pay attention to the small thefts that are going on. Some business owners might put that issue on the side until the holidays end. When they finally pay attention to it, they realize that they have lost thousands (or even millions) in inventory. Don’t wait until it’s too late. A qualified security team can help prevent this.

Prevent Employee Injuries

Another issue that requires your attention is employee safety in the warehouse. Have you checked if your facility can handle the additional stock you likely will have to order for the season? Can your shelves handle the extra weight? New hires are at a higher risk of injury because they often are not trained properly or do not have the experience necessary to deal with the holiday rush. As you hire new employees, consider hiring extra security.

To avoid any untoward incidents, hire people early so that you can train them well and they can be ready to face the challenges of the holiday season. Monitor protocols vigilantly. If an employee is straying from the rules, notify him or her immediately. Put security in each area of your inventory management to enforce safety guidelines.

Prevent Shoplifting

Another cause for concern is shoplifting. The number increases during the holiday season when stores are full, and security is nowhere in sight. Assign security in civilian clothing to monitor store activities, especially during the Christmas rush. You need to take steps to take care of your products from the warehouse to the customer. In-store security cameras and anti-shoplifting devices such as sensor tags/stickers on your items also are useful deterrents to theft. Place signs around the store warning shoplifters that they will face prosecution. Deploy a security guard by the entrance and exit doors.

Prevent Vendor Fraud

The fourth biggest problem that causes millions of losses to companies during the holidays is vendor fraud. Because a company sometimes needs some rush stocks that their usual supplier cannot deliver on time, they tend to look for others that can handle the extra order. However, since it is a rush order, companies sometimes neglect to ask for the proper papers or doing a background check on the new supplier. Then the new vendor turns out to be a shady company that steals money from their customers and disappears overnight.

Another scenario that can cause serious problems is when they deliver faulty goods or less than stellar items and the customers are already tired of waiting and are angry. How do you manage this kind of loss?

Review your numbers from last year so that you can make plans early this year. Talk to your trusted vendors and ask for assurance that they will be able to deliver X number of stocks this year. If they cannot promise you, find a backup supplier immediately. Do your checks, ask for papers and set a contract in place. Train your security personnel to inspect deliveries and how to spot problems in the items. They should report discrepancies immediately.

Managers and Business Owners Can Help Too

As the business owner, you have a role in preventing company losses too. Go to your stores and warehouses unannounced. Do spot checks of receipts, sales records, inventory records, POS, etc. Tell employees that you will be back to monitor changes, thereby making them aware that management is always keeping an eye on them.

Encourage employees to be vigilant and report any customer or employee theft. Anonymous tipping should also be encouraged.

Avoid overcrowding in your stores. Study the outline of your store and pinpoint areas that are vulnerable. Use stanchion ropes and wristbands for crowd control. Only allow a specific number of customers at a time. You will not only prevent shoplifting but will also lessen the risk of injury especially to people with kids and babies.

The holidays can be both a blessing and a curse for many businesses. Accept the fact that your company can be vulnerable to security problems this time of year and proactively put measures in place to prevent them.

JC Protection LLC is ready to assist with your business’s security needs. Please contact us today.