LPQ 102|2023 LATEST UPDATE|GUARANTEED SUCCESS

Why is it important that Loss Prevention professionals learn to see themselves as business professionals first Because their job is a career Loss Prevention provides a unique, complex and essential role within the world of retail. Our chosen field requires specialized training, and an attentive understanding of a variety of different subjects. Mistakes in our business can be devastating to the company. But indifference can be much worse. It is vital that we understand what our role means to the retail industry, but it is absolutely critical that we understand what the retail business means to us. It's a symbiotic relationship - we can't survive without each other. Unless the Loss Prevention professional is capable of evolving to the point that they accept their role as a business professional, their job will never transition into a career. What are some of the different elements that will help us construct a successful retail business and make our business most profitable -First of all, we must take positive steps to establish an identity that will attract our core customers. -We want to provide a quality product at an attractive price. -We need to display our product in a way that makes the product desirable to purchase. -We should take all necessary steps to make our customers feel that they are important, that we will take care of them, that we value their opinions and their business, and that we want them to return and offer us their future business. -We should provide an environment where our customer feels comfortable, confident, safe and secure. 00:02 01:18 What is Retail Retail can be generally defined as the sale of goods and services from companies directly to customers. What is a Wholesale operation Conversely, a wholesale environment could generally be described as the purchase of large quantities of goods, either directly from the manufacturer or through a larger holding company; and then resold in large quantities by those companies either to other companies or directly to consumers. Ultimately, what drives the retail business Sales What factor is most often considered a benchmark for the success of a Loss Prevention program Shrink performance is most often considered a benchmark for the success of a Loss Prevention program. But by the same respect, our shrink numbers are typically measured as a percent to sales, determined by the total number of dollars lost divided by the total sales performance. shrink % = $ lost/total sales What is the ultimate goal of any retail company The ultimate goal of any retail company is to show a profit and to make its shareholders money. How can volume impact pricing Pricing will generally be affected by buying and selling products in greater volume, as well as by producing products in greater volume. It is incrementally less costly (by unit) to produce, ship, market, manage and sell those goods in greater volume, and that savings can then be passed on to the consumer in the form of lower prices. The widget manufacturing company sells their widgets in bulk (or wholesale) to a distributor at $1.50 per widget, adjusting the price for profits. This distributor in turn attempts to sell those widgets to a retail company with their own overhead and profit included in the price. For the purposes of this example, let's say that they sell the widgets to a retailer for $2.00. Finally, the retail company then establishes their selling price, and for the sake of our example let's say that they sell the widgets individually to consumers for the price of $2.50. Thus, in our hypothetical (and very simplified) scenario, 400,000 widgets are manufactured at a production cost of $1.25 per unit, yet the consumer is paying $2.50 at retail. How can we define the term "supply chain" the process of bringing goods and services to a consumer. What are the three primary methods that goods travel from the manufacturer to the consumer through the supply chain M to D to R to C. M to R to C. M to C What are Buyers Buyers are representatives of a company whose purpose is to procure the goods/products that are to be sold to its consumers. What is Marketing Most people think that marketing is only about the advertising and/or selling of goods and services. Advertising and selling, however, are just a part of the many marketing activities that our company may engage in. Marketing will encompass the total process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain our relationship with the customer. In general, marketing activities are all of those activities associated with identifying the particular wants and needs of a target market of customers, and then going about satisfying those customers better than the competitors. This may involve a variety of different tasks, to include doing market research on customers and analyzing customer needs, and then making strategic decisions about product design, pricing, promotion and distribution 00:01 01:18 What is Logistics The transportation network in the supply chain is typically referred to as logistics or the logistical channel. Logistics is the business framework for the management of the acquisition, storage, transportation and delivery of goods along the supply chain. In today's business environment this requires an increasingly complex network of information, communication and control systems. Whether the manufacturing company sells goods to a distributor, retailer, or directly to a consumer, the logistics process ultimately manages the flow of those goods from the manufacturing company's facility and eventually to the consumer. What is a Warehouse A Warehouse is the generic name for a facility that holds/stores large quantities of merchandise until it moves to the next part of the supply chain. What is a Distribution Center A Distribution Center is a facility that generally consists of a warehouse and shipping/receiving area. What are some of the additional support functions that are commonly serviced through the Distribution Centers Typically, an individual Distribution Center will: 1) Service a set number of stores in a geographic area (for example: a Midwestern Distribution Center might serve all stores in the Chicago, St. Louis, and Milwaukee markets); or 2) Provide a specialized product or service for the retail chain (for example: Furniture, Lumber, Books/CDs/DVDs, etc.). Provide storage for overstocked items. Today's Distribution Centers have become the epicenter for a variety of critical support functions in the retail industry. E-Commerce, credit card operations, catalog sales, buying offices and a variety of other support functions may be housed in the Distribution Centers. Each Distribution Center may also have a variety of supporting departments. These may include human resources, maintenance/facilities operations, production control, accounting and Loss Prevention. What is a Cross Dock A Cross Dock is shipping/receiving facility that does not hold an inventory at the facility but exists specifically for the purposes of receiving product in large quantities (for example, from overseas crates, the manufacturer, etc.) and immediately dividing that product into smaller shipments for transporting the goods to a Distribution Center What is the primary objective of Inventory Management Inventory management consists of the ability of a store to keep an accurate count of the inventory it has on-hand at any given time in the store. What are the two most common ways that defective merchandise will be processed by a retail organization First, a retailer will refund the customer's money and the product will be sent back to the manufacturer for replacement or credit to the retail store. The second scenario simply allows for a store to designate the merchandise as defective. This permits the merchandise to be destroyed locally.