New benchmarking tool analyzes shrink strategies
Thorofare, N.J. -- The ECR Shrinkage Group, an expert group focused on shrink, with the support of merchandise availability solutions supplier for the retail industry Checkpoint Systems, is launching an online benchmarking tool, which enables retailers to understand how well they are managing shrink compared to others and the relative strengths and opportunities of their loss-prevention program. The tool provides global benchmarks on the strategic, organizational and operational standards that underpin an effective shrink management strategy.
To access the benchmarking tool, retailers complete an online questionnaire. Once the responses have been entered, the tool generates a color-coded model, which highlights the areas of the shrinkage framework where they have strengths and then in turn, the areas that need to be prioritized.
The framework, shaped as a pyramid, focuses on ensuring that organizational commitment, starting with senior management, is embedded within a business’ practices, policies, procedures and strategic thinking. The objective is to provide a framework that ensures the creation of high-quality data and data management systems, prioritizing operational excellence, internal collaboration and innovation, as well as keeping shrink on the agenda throughout the company. Finally, the pyramid highlights the importance of empowering store staff to take responsibility for dealing with shrink and recognizing how operational failures are the root causes of many forms of retail loss.