The Profitability Of Proactivity In LP

By Keith Aubele, CPP, LPP

Anyone who has worked with me in my organizations know that I am all about developing a proactive loss prevention/asset protection program and effectively deploying it for successful shrink reduction. 

I am not good at dealing with past lost actions or working with reactionary teams.   As a matter of fact, I feel that companies that are spending precious budget dollars on capturing past loss as a part of their daily business model, are really tossing bundles of money into a big black hole.   

Why is proactivity normally so much more profitable then post-activity? Once loss is realized in retail, it is very difficult to justify the spend to attempt to recover that loss.  And traditionally the return on past loss is fractional compared to the cost of uncovering it.   

I prefer building an organization and subsequent processes tools that identify the shrink opportunities, as well as operational gaps, so they can be fixed and adjusted before they cause significant loss to the organization.

Please log in or register below to read the full article.