Businesses can often suffer financial losses that eat up a significant portion of their profits. Thankfully, some losses can be prevented by a diligent and efficient security team. Here are the 3 common financial losses that your security team should watch out for.
Outside vendors deliver a wide variety of products to support the day-to-day operations of businesses. While most vendors are honest and do what they should to provide reliable service such as verifying invoices and double-checking products that they deliver, some bad apples commit vendor fraud.
Examples of vendor fraud include bribing employees to help them cover their wrongdoings, tampering with documentation, invoicing for the same product or service several times, and delivering less than the stated number of products. Vendors can get away with this because they seldom deliver to the same stores every day and some businesses are not very diligent with monitoring things. This is the reason why having some dedicated staff or a security team can be beneficial for your business. Your security team can keep track of deliveries and help with monitoring inventory. When fraudulent vendors realize that your business has strict protocols in place, they are less likely to target you for fraud.
Products can easily get damaged while stocking, handling, and even while in storage. Mishandling by staff is one thing and there is always the possibility that some customers may not be careful enough when handling your goods. Products that are torn or damaged cannot be sold and will cost you a lot of money.
On top of the above, cramped storage spaces and unstable shelving can cause more damage. If you have a dedicated security team, they can be assigned to look out for mishandling as well as alert the right persons if they see some improperly stocked items. With proper training and endorsement, your security team can also be your loss prevention team.
Do you know that employee theft is one of the leading causes of profit loss in any field of business? Not all incidences of theft are easily uncovered, though. Employee theft can be direct or indirect. Some take products and cash while some abuse employee discount programs. Some employees clock in, do not do any work, and clock out; essentially stealing money by getting paid for hours that did not produce any work.
Employee theft can also be covered by employees if they have held other positions in the past or are trained across different positions. For example, someone who stocks products and also has access to your books can easily steal a few boxes of your stocks and cover their tracks by playing with your numbers. This type of fraud can go on for years and is very difficult to notice unless you frequently perform audits. Luckily for you, one way of discouraging employee theft is to have a security team that is trained to spot incidences like this.
In any type of business, the sooner you take proactive action, the better that you can protect your profits. By having a professional security team, you can monitor your employees, your stocks, as well as your suppliers. Contact us at Centaur Security Services Inc. if you are planning on hiring loss prevention officers. We provide security personnel for warehouse security, commercial security as well as retail security needs in Toronto, Mississauga, Brampton & the Entire GTA.