Structured loss prevention services are becoming more and more important in Europe. So far, there is only a limited focus on large-scale loss prevention programmes.
Certainly, one of the major challenges to overcome are the strong worker participation regulations in many European countries: Checking the performance or actions of workers often is a process which falls under the participation regulations of the labour law. Without consent, it may be forbidden for an employer to do so. In order to prepare large scale loss prevention programmes, one has to overcome this hurdle.
But what is loss prevention about?
There are many sources for unnecessary loss, depending on the business structure.
Inventory loss is an example which applies to almost all industries. There are several sources of inventory loss, like careless employees, cheating customers or simply accidental losses without any intention. Here a company may want to ensure, that employee stick to procedures preventing these losses.
A franchise network with franchise fees depending on the franchisees turnover may incur losses due to wrong accounting practices. A shopping mall with rental agreements depending partly on turnover may have the same problem.
Losses incurred by unfollowed procedures are another important example: If there is a choice between suppliers, for example, and there is a preferential cost agreement with one, but the other supplier may be more customer friendly, some organisational units may still choose the more expensive supplier.
Loss prevention audits are often carried out by well-trained professionals. Often, there is a need to visit the back-office, check business details and talk to owners or shop managers.