Operational Shrinkage Control Toolkit 2017

• Document No.

• Operational - Shrinkage Control Toolkit 2017

• BRAND :

• STORE :

• Conducted on

  Date

• Author: Mohamed Khalawy - Prepared by:

• Location
  Address

• The Shrinkage Toolkit has been developed to support the Operations and Area Managers to conduct effective shrinkage control focused store visits twice a year. The Toolkit should only be completed at Area and Operations level so there is a thorough assessment of Shrinkage Management within the Store. For any Areas of Focus which are rated Red and Amber there should be a SMART Action Plan to support the improvement of these areas.
  The Toolkit is divided into four modules;

• S M 1 - What is the store’s previous stocktake result?

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  At Risk

  N/A

• Provide the result of the most recent Stocktake completed in the store.

• S M 2 - What rank for stock performance is the store in comparison to other stores in the Brand?

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• Provide detail of how this store ranks in order of Stocktake performance to others in the Brand?

• S M 3 - Is the stock room clean, tidy and well organised?

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• Complete a visual review of the stock room to confirm this is clean, tidy & well organised. Are products clearly labelled? Have empty boxes been removed? Is the floor clear and no stock blocking aisles? Are Items stored like for like? Are EAS tags and pins stored in a secure place? Is there a secure area for returns, transfers, customer orders and deliveries?

• S M 4 - Does the store have the correct stock levels?

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• Review the stock levels of the store against the correct merchandising levels? If they are over stocked, can this be transferred to a store which is moving the products?

• S M 5 - Has the store manager attended the Stocktake Workshop?

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  At Risk

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• If not, you can nominate the store manager on to the Stocktake Workshop through the LMS system.

• S M 6 - Walk me through the procedure for managing high value/risk merchandise.

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• Are high value/risk merchandise segregated, labelled & monitored daily? Ask the store manager what the process is for these products?

• S M 7 - What are the controls on delivery paperwork?

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• Is the paperwork accurate, with any errors being reported to the brand team?
  All checks have been completed and paperwork entered on the system or taken up with the brand directly.

• S M 8 - Can the store manager explain the process for Carton Scanning and is this being managed correctly?

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• Confirm the carton scanning procedures are being followed as per SOP. Has the AIMS Status reports been checked and controlled for Carton Scanning i.e. missing cartons and mis-directed cartons actioned and followed-up?

• S F 1 - Check 50 products over the value of 3 KWD or local equivalent for price tickets and security tags?

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• Check random products from the sales floor and store room to confirm price tickets are correct and security tagging is in line with brand policy?

• S F 2 - What do you do to make sure the till operators are well trained?

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  At Risk

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• Ensure new team members have completed induction programme, check training folder and LMS compliance. Has the LP handbook been signed off on LMS for all team members?

• S F 3 - Ask all Team Members working on the cashier to explain the process for serving a customer?

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  At Risk

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• Ask the till operators to take you through a transaction step by step, ensuring process and procedure is adhered to.

• S F 4 - Explain to me how the cash refund, advantage and gift card procedures are controlled in store?

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• Check paperwork on failed card summary report for review daily. Ask team members to explain the process for Advantage card. Ensure controls are in place as per SOP i.e. review of Discount/Promotion/Exchange & Refund report evident?

• S F 5 - Ask all Team Members working on the sales floor how they deter theft?

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  At Risk

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• Cover high risk areas, customer service and procedure if they suspect theft.

• S F 6 - Are the cash desks clean, tidy and controlled of refunded stock?

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  At Risk

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• All till areas are clean and tidy, EAS deactivators are secure and refunded stock cleared regularly. No till receipts left on the till point. Security tag detachers for unused tills are kept locked.

• S F 7 - Is all stock controlled and on the relevant racks?

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• Stock is kept on correct racks and not left lying around or in boxes untagged and awaiting staff input.

• S F 8 - Review the fitting room controls?

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• Staff assigned to cover at all times. No stock left over after being used, they are checked for signs of theft, number cards used and never left unmanned at any time. Ensure brand policy is being adhered to

• S F 9 - Review the controls on high value/risk area?

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  At Risk

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• Team members are aware on all high value/risk areas and are conscious of monitoring them always, especially at busy trade times. Cycle count high value items if possible?

• O P 1 - Take me through your process for the induction of new team members?

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• Training records in personal files, document detailing what training is done by who by when, a minimum of 4 hours of till training and subsequent impact of stock results. Have Managers attended the LP Manager training workshop?

• O P 2 - Show me how you read the daily sales summary report?

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• Evidence of checking and reviewing the Daily Flash Report, individual reconciliation claims, transfers and regular check of big credit numbers.

• O P 3 - What process would you follow if there were suspicious transactions on the daily reports?

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• Management team investigating any suspicious transactions and reporting to the Area/Operations Manager and LP.

• O P 4 - What percentage are the voids for the last quarter?

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• From reports enter the percentage of Voids and if required put action in place to reduce. Are they high due to training issues or theft?

• O P 5 - What is the cash value of refunds for the last quarter?

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• From reports enter the cash value of the refunds and if required investigated and put actions in place to reduce.

• O P 6 - Explain the process you follow price changes?

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• Demonstration of checks in place to show that price increases/ decreases have been activated on the correct day. Evidence that stock files are checked for price decrease lines and price overrides are controlled to a min.

• O P 7 - Talk me through how you clean up inventory of reduced to clear and discontinued stock?

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  At Risk

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• Limited volume of discontinued or RTC stock – in a clearly marked area of the stock room, obvious accuracy of paperwork for returning to depot or disposal.

• O P 8 - Talk me through the process for opening and closing procedures?

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  At Risk

  N/A

• Confirm brand opening and closing procedures are being completed as per guidelines and management team understands their responsibilities for these. BOD & EOD procedures completed on daily basis to ensure stock files are updated.

• S 1 - What do you do to reduce the risk of internal staff theft in the store?

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• Colleagues understand types of internal fraud/theft and understand what checks/reports managers conduct/review daily. Are team members aware of LP hotline?

• S 2 - When and how often are staff and locker searches carried out within the store?

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• Conducted as per company SOP standard, ensuring searches are still being completed pro-actively.

• S 3 - How is the safe and contents controlled and deposited with the Cash Collection Center or at the bank?

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• Two people always for over 3000KWD or equivalent. Full adherence to SOP. Evidence of full adherence to SOP on cash collection and depositing in the bank and pickups from the tills.

• S 4 - How are the store keys controlled?

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• Refer to SOP and checked by Operations Manager on every visit.

• S 5 - Where does the lost and found get kept and what is the procedure?

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• Lost and found is being segregated, logged and all unclaimed items surrendered as per SOP.

• S 6 - Show me the team notice board.

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• Board is up to date, last stock result is displayed, clear actions displayed and who owns the process. Staff are aware of LP updates. LP Confidential hotline details. Fire Evacuation Toolkit is visible.

• S 7 - Is all security equipment in full working order?

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  At Risk

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• Any security equipment which is broken/damaged has been reported and MRF ticket has been raised – enter MRF ticket number. Evidence of follow-up is in place.

• S 8 - Ask the team members how they would interact with customers on EAS activation?

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  At Risk

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• Customer service is offered to the customer, any shopping which has been purchased in our store is checked and confirmed as having the tags removed. Any suspicious activity is reported to the security team.

ACTION PLAN

• Add extra advanced action plan

  Yes

  No

  N/A
Module

• Module NO:

• Action Plan Next Steps :

• WHO ?

• WHEN ?

  Date

• REVIEW DATE :

  Date

Signatures

• SM SIG & DATE :

  Sign

• Area/Operations Manager SIG & DATE :

  Sign

Store Manager/In-Charge Declaration Form

• I declare that I have read and understood the stocktake action plan including all the attached documents and SOPs. All pages have been discussed with my store team and placed in the one file for future reference.

• Comments :

Signatures

• Store Manager SIG & Date :

  Sign

• Operations/Area Manager SIG & Date:

  Sign