What’s a surefire way to increase your company’s profit? Invest in a loss prevention program. In 2014, American businesses reported $44 billion in lost sales because of shrinkage, which is the loss of inventory from theft, damage, and internal errors. While shoplifting accounts for 37% of product shrinkage, employees can also be caught red-handed. According to the U.S Chamber of Commerce, 75% of employees steal at least once.
One of the most affordable ways to prevent product loss is to enhance employee communication with a two-way radio system. Below are examples of how companies are using these tools to prevent theft.
Stop shoplifters from leaving the store
Many retailers implement radio systems because they improve communication, not just because they add an extra layer of security. Why else would retailers have cameras all over the place? While radios will never eliminate the need for CCTV, they do allow employees to report an incident immediately instead of after the incident – or not at all. Employees don’t have to worry about sensitive situations. Two-way radios enable employees to report the incident verbally or discreetly through text. Some systems even come equipped with a vibrate option to alert the person of an incoming call. This is perfect for when an employee is watching the security cameras and needs to alert a nearby manager of the theft as it occurs.
Discourage shrinkage in the warehouse
Loss prevention not only cracks down on theft, but also encourages employees to follow best practices and protocols. Accidents happen, and sometimes products get damaged. Instead of reporting the damaged widgets, an employee may throw the widgets away or take some home for his family; one of these scenarios is accidental theft, and the other is costing you a lot of money that you could otherwise save with proper training. Improved communication with employees may decrease the chance of accidents happening (e.g. more trained personnel taking over a task). Do you want to get to the bottom of your product loss problem? Two-way radios can record all messages and can be played back. Not to mention, these recordings are approved to be used in court.
Enhance your current inventory management system
Barcoding and two-way radio systems can turn your inventory management system from good to great. You already have barcode scanners and printers that allow your staff to work from anywhere; now it’s time to add radios to the mix. Traditionally, employees would have to stop what they were doing, find the nearest phone, and get in touch with another team member. Now everyone can communicate throughout the workday, no matter where they are on the floor and without downtime. Two-way radios are more affordable than cellphones and let the whole team communicate at once, as well as one-on-one.
Prevent private information from walking out the door
While two-way radios are designed to enhance the communication between team members, many people are aware of the types of sensitive information transferred over two-ways on a daily basis. Think of these radios as police scanners; you don’t want them to fall into the wrong hands. Luckily, many radios are built in with a “self destruct” mechanism. Not to worry – nothing will explode, but they will stop working if they:
- Leave the premises
- Are reported stolen
This means that the device can no longer send or receive messages. If your team manages to recover the stolen device, it’s not rendered useless. A signal can be sent to the device that will restore it to its original state.
Let Bar Code Direct be your partner for loss prevention. Contact us today to learn how we can help you set up a two-way radio system for your business.