What Is a Loss Prevention Officer?
"Prevention" for loss prevention refers to prevention, and "loss" refers to loss. Literally, loss prevention is the process of preventing loss. Prevention can be divided into three stages before, during and after, so the precise description of loss prevention should be the process of using internal control to manage the losses before, during, and after the loss.
Loss Prevention
Right!
- Chinese name
- Loss Prevention
- Meaning
- The process of preventing loss
- Divide
- Before, during, after
- Application range
- General business, retail
- "Prevention" for loss prevention refers to prevention, and "loss" refers to loss. Literally, loss prevention is the process of preventing loss. Prevention can be divided into three stages before, during and after, so the precise description of loss prevention should be the process of using internal control to manage the losses before, during, and after the loss.
- In essence, loss prevention belongs to
- For each retail enterprise, it is very necessary to establish a loss prevention system and preventive measures to protect the interests of customers, employees and enterprises. The fastest growing among retail enterprises is attrition. When the major supermarkets have very low profits, It also bears huge losses caused by internal theft and external theft. Tangible and intangible losses restrict the development of the enterprise and endanger the survival of the enterprise. How to establish a loss prevention mechanism that meets the requirements of modern retail enterprises? This article discusses this issue with the development of "loss prevention" in the retail industry. Security system-the initial stage of the development of the loss prevention system. While the open sales method attracted a large number of customers, it also attracted a large number of thieves. The high theft rate at the time of opening made the business very headache. The birth of a supermarket in Guangzhou set off the first commercial boom in China in the early 1980s. In the end, due to unfavorable anti-theft and high loss rates, it had to be closed. Cracking down on burglars and burglars, and strengthening security precautions have become the top priority of the mall's security department, "stand well, guard the door, catch thieves, and keep safe." This is what many supermarket managers demand from security managers. The first batch of supermarkets in China continued to use the concept of "defense" in old commercial enterprises. The main feature is that security is the main responsibility, and the main task of combating internal and external theft is close to the public security department. A lot of manpower and material resources have been invested, and the EAS system and CCTV system have been introduced. In the shouting of "beating", the security department has achieved great results. In the face of hundreds of thieves caught each month, tens of thousands of yuan in fines They think they can take a breath, but the good times are not long. Some "smart" employees started to study the operating procedures of the supermarket. Some vulnerabilities were found by them, some inexplicable thefts began to occur, and some huge The difference cannot be explained. Color TVs and refrigerators that cannot be stolen are often lost. Cashiers will become very rich. There will always be countless anonymous reports of purchases by the boss. A buyer who was fired because of suspected bribery opened. He came to the company's security manager with Honda and told him that the new house was just opposite. In a large national chain enterprise, because the collective corruption of the heads of purchasing and finance, security and other departments in a region caused the loss of tens of millions of assets, they had to stop expanding and sent a working group to rectify. These losses are far greater than theft, the intangible losses are greater than the tangible losses, but the security department is helpless. why? From the perspective of organizational structure, the security department is under the leadership of the store and does not have independence and supervision. From the scope of work, the main task is security, which cannot involve other departments, let alone the core of procurement, finance, computer systems, etc. In terms of quality, most of the security managers come from demobilized veterans, state-owned enterprise security cadres, or promotion among security officers. They are not familiar with the business and do not have the skills to prevent damage. At the end of the last century, the security departments and security departments of some supermarkets began to change the department name to a loss prevention department. This is not just a change of department name. It indicates that the security system of China's retail industry is facing a change. With the development and expansion of retail enterprises, the management loopholes and attrition loopholes have become larger and larger. The original security system has gradually failed to meet the requirements of modern retail enterprises. They can only control limited and tangible losses, and face more A large range of intangible losses is powerless. Under this premise, a loss prevention system adapted to the modern retail enterprise came into being, and its emergence was neither conceived by theorists nor copied from abroad, as one loss prevention manager said: " We were killed through fierce battles. "It was a thought-provoking case, and it was bought by the company after paying no math fees. Unlike the previous security system, "loss control" has become the core content of loss prevention management. Loss control-the core content of the current loss prevention system In order to achieve "loss control", the modern retail enterprise's loss prevention system should have four functions: the function of loss supervision (with certain deterrent power): that can penetrate all aspects of operations , Play the role of supervision, reduce the background of possible violations in these links, and play a role in optimizing the environment. Loss early warning function: Build a loss early warning system in line with the status quo of the operation, set up a set of early warning parameters in the information network, and those that exceed the normal parameter range become the loss parameters, enter the early warning process, and be controlled by the loss prevention department. For example: confirming the number of safety stocks based on sales data to realize the purchase order volume warning; confirming the account period fund occupancy based on the amount of merchandise inventory; realizing capital warning; realizing comprehensive gross margin warning based on new products, special prices and competitive stores; Comprehensive analysis of sales, sales rankings, and turnovers to realize financial payment early warning; formulate loss abnormal parameters based on inventory data to realize abnormal loss early warning. Loss analysis function (loss audit): It can timely arrange normal loss and abnormal loss from the loss phenomenon, analyze abnormal loss, and find out the cause and solution. Loss processing function: Loss processing includes three aspects: 1. The processing of loss items, such as the processing program of loss products 2. The processing of the loss process, identifying the problems that cause the loss process, and correcting them 3. The processing of the loss staff, and the generation of losses Analyze from human factors and deal with them accordingly. In order to realize these four functions, the loss prevention system must have integrity: the integrity of the functional design should be realized, and the various loss prevention functions such as auditing and supervision should be unified with the loss prevention department to form a whole. Independence: In the structure, it is represented by the direct leadership at the highest level of the company and implements vertical management. The store loss prevention staff is responsible to the company's loss prevention commissioner, the company loss prevention commissioner is responsible to the company's loss prevention director, and the headquarters loss prevention director is responsible to the company's general manager. . Objectivity: Loss prevention work permeates all departments of the operation. Due to its independent work system, it can analyze problems from an objective perspective. It establishes an independent audit system in the loss prevention system, and participates in finance, procurement, and operations. And other departments to analyze the abnormal situation, find out the reasons, and plug the loopholes in a timely manner. Serviceability: When confirming the function of the loss prevention department, we should fully reflect the purpose of the service, and the purpose of loss prevention is to make a profit. First of all, it is necessary to emphasize that loss prevention is an operational service. The loss prevention department grasps the focus of loss in a timely manner through the analysis of loss, reduces the loss of goods and theft, and eliminates various hidden dangers through the selection of prevention equipment and various operating equipment to ensure normality. Operation to provide customers with a comfortable shopping environment. Through the promotion and training of various risk control and implementation of various risk control plans, employees can master various risk control skills, prevent various risks, and deal with various accidents in a timely manner. Headquarters serves the store, and the Loss Prevention Department provides all staff loss prevention training for the store, conducts business training and guidance for the loss prevention staff, evaluates, and confirms their work goals according to the phased focus of the store. The business is sales services, and the audit and audit work of the Loss Prevention Department. Through the analysis of various operating information such as sales data and inventory data, it establishes purchase order volume early warning, capital early warning, supply chain early warning, sales target early warning, and comprehensive gross profit margin. Early warning, promotion cost early warning, commodity structure early warning, financial payment early warning, so as to establish a safe operation early warning system, so as to achieve the purpose of service sales. In summary, in the modern loss prevention system, a new meaning is given to "loss prevention": Loss prevention is a consultant: This is for management, and it is necessary to find loopholes in the management system and internal processes in a timely manner. Provide suggestions and improvements to management. Loss prevention is a coach: Loss prevention is deeply involved in all aspects of operations. It is not to criticize and provoke, but to instruct employees on how to do it, how to prevent mistakes, and minimize the risks that are happening. Loss prevention is the supervisory committee: it can grasp the security situation of all departments and stores in a timely manner, stand on an independent, objective, and fair position to measure, see if they have problems, and report to the headquarters management in a timely manner to avoid possible occurrences risk. Loss prevention is the image ambassador: a clean loss prevention mechanism will generate a fair and transparent operating model of the enterprise, reducing rebates and corruption in the middle link, not only increasing profits for the enterprise, but also reducing the cost of the supplier, so that customers receive Maximum benefits, and ultimately establish the image of corporate integrity in front of suppliers and customers. Development Trend of Loss Prevention in Modern Retail Enterprises Establishing a loss prevention system adapted to the development of modern retail enterprises has been more and more recognized and accepted by corporate managers. According to the "China Retail Loss Prevention Research and Exchange Center" for participating in the first loss prevention seminar According to the statistics of the members of the fifty large and medium-sized retail enterprises in the class, 25% of the enterprises have established a modern loss prevention system, and by November 2002, the fifty large and medium retail members who participated in the second loss prevention seminar According to statistics, another 40% of enterprises have established a modern loss prevention system. Many members call us when they return. The company's leaders agree with the loss prevention system and they are working hard in this regard. The rapid development of the loss prevention business indicates that Chinese retail entrepreneurs have begun to mature, practice their internal skills, and establish a loss prevention system that suits the needs of their own development, which will lay a solid foundation for the development of Chinese retail enterprises.