5 Simple Ways to Reduce Shrinkage by 50% in your business in the next 30 days

5 Simple Ways to Reduce Shrinkage by 50% in your Business in the next 30 days

In business, the word shrinkage is a dirty and misunderstood word, with some business owners not knowing how it is affecting their business.

In this article I will cover:

  • What is shrinkage and how it affects your business?
  • What is the Biggest cause of Shrinkage?
  • How can shrinkage be reduced, saving you money and giving you peace of mind?

What is shrinkage and how it affects your business?

There are thousands of websites out there describing Shrinkage.

My taking on it, is how much money you are losing each year due to products being stolen, lost or damaged.

What is the biggest cause of Shrinkage

External Shrinkage

External theft also known as shoplifting is the biggest culprit, resulting in 34.6% of total shrinkage or £1,993mn in real money in 2019 alone. These crimes are typically committed by street gangs or drug users who seem fearless and target items they know they can steal and later return for a full refund or just sell on for a small profit.

These criminals know that the police will not get involved if the goods are worth less than £200, meaning they will not have to attend court if caught by store security, making more people willing to take the chance.

Some retail management already affected feel that because shoplifting is classed as a low-level crime, the police will not respond unless their staff are in physical danger.

Security workers around the country claim on many occasions they have been asked by police to do more deterrent work and less reporting, which then affect the yearly shrinkage figures.

Organised Crime

Another way retailers are losing out is to organised crime. Career criminals target warehouses and delivery vehicles by stealing to order. This can include cash, merchandise or even customers personal data. These criminals often use the threat of violence to get what they want.

About 28.2% of losses are caused by organised crime, which was a total of £562mn in 2019.

Too Much Trust

Many business owners have installed self-service technologies that a customer can use and self-scan the items they want. Unfortunately, some people take this opportunity to “forget to scan” certain items because they don’t have someone checking them. It’s not actually known what the shrinkage is caused by this forgetful action because sometimes the scanner will scan a product a number of times which operates in favour of the retailer.

Internal Shrinkage

As with self-scanning, it is hard to deduct the exact amount lost each year. Research respondents estimate it as about £1,305mn which is around 22.1%. Some of this loss is down to human error, such as not giving the right change or mis-scanning items but it’s also down to a small amount of staff members giving fake refunds to family or purposely damaging items and selling them to their friends.

Warehouse and Supplier Fraud

This costs retailers £915mn (18.0%) in 2019. Suppliers and warehouses losing or damaging products happen all the time, however in some cases it’s done on purpose with the retailer not finding out for weeks or months later. Make sure the warehouse you use has a low shrinkage allowance in their contracts. The allowance is how much of your inventory can go missing before they have to reimburse you for it. Shrinkage allowances often range between 2% and 10%.

Administrative Error

We are all human and everyone makes mistakes, however, administrative mistakes cost businesses 25.3% or £1,202mn of shrinkage in 2019. This error is known as “error against planned sales” can be caused by several reasons. Incorrect mark-up price and products sent to the wrong shop being the main two. Businesses are constantly looking for ways to reduce these types of errors thus hopefully reducing losses.

How can shrinkage be reduced, saving you money and giving you peace of mind?

Increase Security

They say “too many cooks spoil the broth” but that’s not the case in security. The more eyes on the ground, the better. But I’m not talking about employing more thick-necked doormen that will probably just scare the customers, I mean educate your current staff.

I can’t tell you how many shops I’ve been in that have left me to my own devices once I’ve said “No thanks, I’m just looking.”, off they pop, back behind the till, to continue scrolling or tweeting.

Change the way your staff greet customers, engage them with longer questions than “Do you need any help?” Use “Hello, what are you looking to buy today?” or something similar. You want the potential shoplifter to look at you and know the staff are aware of their surroundings. You have to remember that shoplifters like to blend in and not be noticed.

You may get the same response “No thanks, I’m just looking” and if you do, that’s ok. Just reply, “ok, I’ll be just over there when you need me”. Make sure you point when you say this as any normal shopper will look in that direction whereas a shoplifter may not.

Just the presence of “on the ball” staff, is enough to put off a shoplifter, thus reducing external shrinkage.

Tagging Items

Depending on your business, a visible RFID tag works a treat. RFID readers on the doors will trigger and notify staff when an item is stolen so it’s a great deterrent for both would-be thieves and dodgy staff members. Simply knowing items are tracked can increase staff accountability and reduce internal shrinkage

This helps to reduce losses in 3 ways

  1. Security staff can quickly detain the thief and recover the item.
  2. The item can be quickly replaced on the shelve for future customers.
  3. The data received from the RFID reader can be used to see which items are targeted therefore increasing security measures to protect those items.
Check Equipment

Make sure all self-scanning equipment is working correctly. In a microwave world where people get bored in seconds, people don’t want to or will not wait, which can lead to items not being scanned.

Spot checks for self-scanning

Talking of self-scanning. Put up signs telling customers that anyone self-scanning may be required to be checked by staff. That will put off any chancers.

Upgrade your CCTV to an Intelligent Surveillance System

A CCTV system is a good way to reduce both internal and external shrinkage. Having that third eye in the sky, with RFID tags and great staff can reduce loss by in some cases 50%.

The trouble is there are so many businesses out there with CCTV that can’t be used because of faulty cameras or bad locations. The other problem with CCTV systems is they are used AFTER something has been stolen

Look at upgrading your CCTV system with a modern intelligent surveillance system that will give you more idea what is happening within your business.

It does this with artificial intelligence, watching and analysing video without any input from you or staff and can send real-time notifications to staff members on the floor.

Artificial Intelligence can provide:

  • Face Match: Upload a shoplifters face and be sent a notification if that person enters your business.
  • Powerful Insights: Intelligent features include, Motion-Triggered Alerts, Heat-maps & Object Counting, Vehicle & People Filters, Fast Search & Detection.

These are just a few things intelligent surveillance is capable of doing.  

For more information on intelligent surveillance and how it could help you in your business or home contact info@cwsmarttech.com

6 Ways Intelligent Surveillance Protects Your Marina

6 Ways Intelligent Surveillance Protects Your Marina

In this article I’m going to share with you 6 ways intelligent surveillance protects your marina. These ways will cover:

Marinas and Harbours may gain significantly from the security and safety offered by advanced Intelligent Surveillance. With visitors and yachts continuously visiting and venue car parks, marina gift shops and dining establishments, marinas come with a variety of surveillance requirements.

There are a variety of advantages of having an intelligent surveillance system for Marina surveillance and below are:

6 Ways Intelligent Surveillance Protects Your Marina:

1. Help Prevent the Spread of COVID-19

Intelligent Surveillance protects your marina with cameras that include thermal body temperature access control systems, which can be not only used for temperature checks but used with ticket reading and turnstile access to streamline the track-and-trace requirements for your customers. These measurement zone systems can measure groups of customers at once.

They also offer flow management systems for minimising staff interaction for areas of congregation such as refuelling, washing and repair facilities. An effective traffic light system, keeping zones within capacity to prevent overcrowding. Realtime and post-event analytics available for management monitoring, keeping in line with regulations.

protect your Marina with Intelligent Surveillance
Marina with boats waiting

2. Proactive vs Reactive

Today’s Intelligent Surveillance cameras are proactive, meaning they alert you by text as the crime is committed, that way you can give the police up-to-date information, instead of the old-style CCTV Security Systems, where you get a call from a boat owner telling you there has been a break-in.

These smart cameras often function as deterrents to criminal activity. So actively placed smart video cameras can help prevent vandalism at the marina saving you hundreds, if not thousands of pounds in costs. If criminals or vandals are caught on camera, the smart camera will supply valuable HD definition footage for prosecution.

3. Flexibility

The main benefit of installing an intelligent surveillance system at a marina is the scalability smart cameras offer. Smart surveillance systems are able to evolve as required. When a marina needs more detailed tracking extra cameras are easily connected to the network at a later date.

4. Improve Security

Setting up an intelligent surveillance system will assist the sensation of safety. Anyone using your Marina in the dark will feel safe knowing the Marina is under constant surveillance.

5. Decrease Liability

Visual proof provided via smart cameras may reduce blame in disputes involving mishaps on the jetty, a watercraft, or other marina facilities.

6. Reduce losses

Most Marinas consist of gift shops and dining establishments. Owners of Marinas may decrease losses by setting up smart cameras at important areas such as sales register and every exit and entry point.

These are just 6 ways intelligent surveillance protects your marina. There are many other benefits a smart intelligent surveillance system can bring to your marina, business and home.

What We Do

To find out other ways intelligent surveillance protects your marina and to learn if we can assist you and successfully safeguard your marina, fill in the form below to contact us TODAY. Our intelligent surveillance specialists will contact you to determine the best possible surveillance option.

Intelligent Security, Audio Visual Systems, Network Services, Automation Solutions. We pride ourselves in tailoring solutions to fit your needs, your budget, and your goals, utilising the latest consumer trends and industry innovations. Working with the industry’s world-class manufactures to provide the highest quality and standards. From initial briefings to the design stage, straight through to installation, commissioning and aftercare support.

For latest information regarding COVID-19.

    Protect Your Home and Business with CCTV Security Systems

    Protect Your Home and Business with CCTV Security Systems

    With numerous reports of home, robbery, and theft invasions recently, you’re probably extremely worried about the security of your home or company. There is a certain need for concern. Lots of homes or organisations are burglarized due to the fact that they do not have a reputable security system in place.

    CCTV security systems are growing in popularity for all sorts of purposes. As the requirement for security cameras grows, CCTV innovation is likewise growing by leaps and bounds with new innovative functions to make video security more dependable than ever.

    What is CCTV?

    CCTV represents “closed-circuit television” and is a television system that is suggested for personal usage only, not for public broadcast. CCTV is used for numerous purposes. It may be used to keep track of a baby-sitter or a caretaker for a senior individual. As an employer, you might use it to watch on your workers and to monitor daily operations or you might use it to protect your Marina with Intelligent Surveillance. CCTV can be used to observe public places by the government or law authorities such as parks, real estate or apartment advancements, and cars and truck parking garages.

    Protection and Prevention with CCTV Security Systems

    A CCTV electronic camera can be placed practically anywhere in any space where adequate lighting is readily available. Numerous of the new model CCTV video cameras are wireless and can be run on batteries.

    Types of CCTV Surveillance Cameras

    There are several types of CCTV security systems available. If you want a “covert” camera, there are miniature cameras and even CCTV video cameras that look like daily items, such as the pen camera, smoke alarm camera, and the clock cam. These items appear to be regular, but in fact have a CCTV video camera hidden within. There are intelligent surveillance systems, covert cordless electronic cameras, multiple video cameras with receivers for observing a broad area, dome-covered wireless cameras, and cordless video senders.

    Benefits of a DVR Security System

    A DVR security system is a digital video recorder that can be used in concurrence with the CCTV system. Some special functions that you might find with a DVR system include fast replay search using time, date, or day, numerous electronic camera recordings and display screen, a CD author for backup, motion detection, remote control, and more.

    With these useful monitoring products, you can feel protected and safe at your home or business. They can be utilized as a deterrent to burglars or to catch them in the act. There are likewise other terrific security products for developing gain access to control to specific areas of your house or company, car computer, security and internet security, and other usages.

    Use online resources to find the ideal CCTV security system for your house or service. You won’t regret it!

    A CCTV electronic camera can be placed almost anywhere in any space where sufficient lighting is available. Numerous of the brand-new design CCTV video cameras are wireless and can be run on batteries. There are many different types of CCTV security systems available. If you want a “hidden” video camera, there are miniature electronic cameras and even CCTV cameras that resemble everyday things, such as the pen electronic camera, smoke alarm video camera, and the clock cam. A DVR security system is a digital video recorder that can be utilized in concurrence with the CCTV system.

    What We Do

    To learn more on how we can assist you successfully safeguard your home or business, fill in the form below to contact us TODAY. One of our CCTV specialists will carefully assess your needs to determine the best possible surveillance option.