EDITOR’S LETTER

Why Supply Chain?

Since the magazine began publishing in 2001, we have included occasional articles on supply chain topics such as cargo theft and distribution center loss prevention programs. However, readers may have noticed that we have included more editorial on supply chain in the recent few years. Why?

With the evolution of omni-channel retailing where customers can order online, pick up in store, or return items delivered to their homes at nearby stores, the supply chain and inventory control play a much more important role than a decade ago. And because asset protection organizations play a vital role in supply chain, we have focused more editorial on the subject.

Understanding Today’s Supply Chain

In this issue we have several feature articles and columns dealing with different aspects of supply chain. The first is an interview with one of the better-known loss prevention executives in the supply chain security and risk management arena, Maurizio Scrofani, CCSP, LPC (see page 27).

Scofani started in loss prevention as a store LP associate before moving into supply chain, so he has a broad perspective on both the loss prevention aspects of supply chain and the overall evolution of omni-channel retailing. In our interview he expresses his opinion of the importance that all LP professionals should have a fundamental understanding of supply chain:

It’s the right time for brick-and-mortar associates to start shoring up their glossaries because supply chain AP and store AP will all be talking the same language sooner or later.

In a second feature article on page 39, we look at some of the traditional challenges of supply chain risks related to cargo theft in transit and inside our distribution centers. The statistics revealed in the article by LPM Senior Writer Garett Seivold show that despite improved programs and technology, supply chain loss by theft is still an issue for retailers:

While cargo-theft data overall seems to suggest that shipments are growing safer, experts insist that loss prevention practitioners need to stay consistently engaged as obstacles and opportunities cause cargo thieves to shift tactics.

Two columns in this issue also address other aspects of supply chain management. In our ongoing Supply Chain column on page 24, another well-known supply chain executive Glenn Master discusses issues related to managing contracted third-party logistics providers who may handle any number of services for moving product throughout the supply chain, including the “last mile” delivery to consumers.

In our Strategies column on page 58, we interview Guy Yehiav, the CEO of Profitect, about how analytics are helping retailers fine-tune their logistics and supply chain operations to maximize merchandise on-shelf availability and to support omni-channel retailing.

For LP professionals looking to learn more about supply chain, there are two upcoming events to consider. The first is the Retail Industry Leaders Association (RILA) Retail Supply Chain Conference February 24–27 in Orlando (see linkretailsupplychain.rila.org). The second is the International Supply Chain Protection Organization (ISCPO) annual conference March 6–7 in Dallas (see iscpo.org/conference).

Shoplifting Response and Self-Checkout

Our two other feature articles should not be overlooked. The cover article on page 15 discusses an extremely important topic that continues to be debated in our industry—how should retailers respond to shoplifting apprehension? Do we, or don’t we? Walter Palmer, CFI, CFE, and Jacque Brittain, LPC, offer their perspectives.

Professor Adrian Beck’s article on page 51 reports on his research into self-checkout. His two-year study takes an in-depth look at losses associated with fixed self-checkout stations and scan-and-go technologies used by thirteen retailers in the US and Europe. His findings are both alarming and insightful for LP organizations tasked with managing losses with self-checkout programs.

Jack Trlica Managing Editor

Charles Bernard Group Vice President, Asset Protection and Comprehensive Loss, Walgreens Erik Buttlar Vice President, Asset Protection, Best Buy Jim Carr, CFI, CCIP Senior Director, Global Asset Protection, Rent-A-Center

Ray Cloud Senior Vice President, Loss Prevention, Ross Stores

Francis D’Addario, CPP, CFE Emeritus Faculty Member, Strategic Influence and Innovation, Security Executive Council Charles Delgado, LPC Regional Vice President, Store Operations, Academy Sports Scott Draher, LPC Vice President, Loss Prevention, Safety, and Operations, Lowe’s

Scott Glenn, JD, LPC Vice President, Asset Protection, The Home Depot Barry Grant Chief Operating Officer, Photos Unlimited

Bill Heine Senior Director, Global Security, Brinker International

Frank Johns, LPC Chairman, The Loss Prevention Foundation

Paul Jones, LPC Director, Asset Protection and Risk Management, CKE Restaurants Holdings Mike Lamb, LPC Vice President, Asset Protection, The Kroger Co. David Lund, LPC Vice President, Loss Prevention, DICK’S Sporting Goods

John Matas, CFE, CFCI Vice President, Asset Protection, Investigations, Fraud, & ORC, Macy’s Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA Randy Meadows Senior Vice President, Loss Prevention, Kohl’s

Melissa Mitchell, CFI Director, Asset Protection and Retail Supply Chain, LifeWay Christian Stores Richard Peck Senior Vice President, Loss Prevention The TJX Companies Joe Schrauder Vice President, Asset Protection, Walmart Stores

Tina Sellers, LPC Director, Asset Protection, Retail Business Services LLC, an Ahold-Delhaize Company Hank Siemers, CFI Vice President, Global Retail Security, Tiffany & Co. Quinby Squire Vice President, Asset Analytics and Insights, CVS Health

Mark Stinde, LPC Vice President, Asset Protection, 7-Eleven

Paul Stone, CFE, LPC VP Security, Goodwill Industries of SE Wisconsin

Pamela Velose Vice President, Asset Protection, Belk

Keith White, LPC Senior Vice President, Loss Prevention and Corporate Administration, Gap Inc.

Loss Prevention, LP Magazine, LP Magazine Europe, LPM, and LPM Online are service marks owned by the publishers and their use is restricted. All editorial content is copyrighted. No article may be reproduced by any means without expressed, written permission from the publisher. Reprints or PDF versions of articles are available by contacting the publisher. Statements of fact or opinion are the responsibility of the authors and do not necessarily represent the opinion of the publishers. Advertising in the publication does not imply endorsement by the publishers. The editor reserves the right to accept or reject any article or advertisement. LOSS PREVENTION MAGAZINE

700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax MANAGING EDITOR Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com EDITORIAL DIRECTOR Jacque Brittain, LPC JacB@LPportal.com MANAGING EDITOR, DIGITAL Kelsey Seidler KelseyS@LPportal.com RETAIL TECHNOLOGY EDITOR Tom Meehan, CFI TomM@LPportal.com SENIOR WRITER Garett Seivold GarettS@LPportal.com CONTRIBUTING WRITERS Read Hayes, PhD, CPP Walter Palmer, CFI, CFE Maurizio P. Scrofani, CCSP, LPC Shane G. Sturman, CFI, CPP Bill Turner, LPC David E. Zulawski, CFI, CFE CHIEF OPERATING OFFICER Kevin McMenimen, LPC KevinM@LPportal.com DIRECTOR OF DIGITAL OPERATIONS John Selevitch JohnS@LPportal.com SPECIAL PROJECTS MANAGERS Justin Kemp, LPQ Karen Rondeau DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com CREATIVE DIRECTOR Larry Preslar

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