| A previous article outlined the horrific costs associated | | | | following up on discrepancies, staff will soon learn that |
| with Inventory Shrinkage in the retail industry - | | | | nothing gets by "ol' Eagle-eye" • Prevent |
| approximately 4% of the total annual inventory costs. | | | | unauthorized "markdowns" by setting security levels to |
| A good POS (Point of Sale) system can help cut this | | | | reflect what the individual needs to do. Frontline |
| in half by helping to eliminate two of the major causes | | | | salespeople don't need to access the Accounting |
| of Inventory Shrinkage - internal theft and "messed up | | | | backend, and only those responsible for receiving |
| paperwork". The last article dealt with the "carrots" you | | | | inventory should be able to adjust stock levels. Your |
| can implement with a good Point of Sale system to | | | | POS should have complete flexibility to customize |
| reduce the internal theft component of Inventory | | | | security access and "clone" settings, so all Salespeople |
| Shrinkage. It covered things like improved | | | | have similar security access • There will always be |
| communications, profit sharing, employee discounts, and | | | | situations where Salespeople may need to offer a |
| the tracking and offering of sales commissions, SPIF's, | | | | discount to make a sale. Make sure your POS can |
| etc. In this article, I'm going to show how a Point of | | | | handle predetermined sales discounts on a per item |
| Sale system can be used to reduce internal theft using | | | | basis - with or without a "Manager's Override" required |
| the "stick" of increased security measures. A following | | | | • Brazen theft of cash from the cash register is |
| article will discuss how to improve "messed up | | | | reduced when your POS can give real-time |
| paperwork". | | | | reconciliations simply and quickly, and with the complete |
| A good Point of Sale system should balance between | | | | itemized list of who did what transactions • |
| carrots and sticks, but sometimes the only way to | | | | Refunds are often an area of "vulnerability" that is |
| reach some employees is through a "stick" of an | | | | open to employee abuse. Your POS should be able to |
| effective security program and a straightforward | | | | quickly access the original sale based on the item |
| policy of prosecuting any employee caught stealing. | | | | being returned. A complete sales history of both the |
| Here are some sticks that a good POS can give you. | | | | customer and the inventory item, coupled with the |
| • Each employee should have a username and | | | | salesperson involved, can also identify any suspicious |
| password required to log on to the Point of Sale | | | | activity • Receiving and Shipping are also areas |
| system. This promotes accountability, especially if they | | | | prone to potential "mishandling". Your POS should |
| know that transactions can be immediately traced | | | | automatically handle Purchase Orders, generate |
| back to an individual • Run frequent Administrator | | | | Receiving forms, and easily handle short-shipped and |
| Reports - daily or at least once a week. By keeping a | | | | backordered items. |
| close eye on sales and inventory and by immediately | | | | |