SUPPLY CHAIN
Supply-Chain Focus Should Be “Left of Boom”
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upply-chain asset protection (SCAP) in business has traditionally been reactive instead of proactive. SCAP teams are often housed in headquarters or a regional hub and called upon to investigate incidents and deal with the outcomes. That means the “protection” side of the role isn’t aggressively fulfilled, and the process becomes one of mopping up a mess. The management team may learn something in the aftermath, but collectively the group grows frustrated, and the time-consuming work lacks strategic direction. Members of the military use the powerful term “left of boom” to describe all events that lead up to an explosion. Left of boom is where one can have a positive effect—gathering intel, training the team, and putting systems in place that make the explosion less likely. Everything to the right of that boom deals with consequences and clean up—securing the area, treating the injured, repairing the infrastructure, and raising morale again.
Left of boom is where one can have a positive effect. Everything to the right of that boom deals with consequences and clean up. In retail, far too many loss prevention teams talk about events left of boom but actually and unwillingly function a right-of-boom operation. Being left of boom means being proactive and having the correct resources—the “protection” part of a SCAP team is active. Being right of boom can be brand tarnishing. As an industry, we need to move camp. We need to pick up all our equipment and ideas and move them to the left of the boom. It will generate better results and improve morale. And don’t underestimate the power of morale. Stopping an event from happening is far more satisfying than dealing with the mess after it has happened and sometimes getting a trophy for clean-up work.
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MAY–JUNE 2017
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By Maurizio P. Scrofani, CCSP, LPC Scrofani is a well-known supply-chain asset protection professional with over twenty-five years’ experience in retail and manufacturing. He is a prolific writer and frequent speaker at regional and national conferences. Scrofani is a consultant and general partner with MPS Ventures. He was recently named vice president of supply chain security and intelligence for ALTO US. Scrofani can be reached at maurizio@mpsconsultants.com.
We can do many things to get left of boom. We need to consider our roles not just in the companies we work for, but also in the processes that happen in and to our role. SCAP is an integral part of any modern retailer, but it also has a function that lies slightly outside the normal day-to-day running of a store. Being proactive here allows the loss prevention team the opportunity to make a lasting difference to the operation. A retailer that doesn’t get a loss problem under control has a real problem. It bites into profit margins and pushes them closer to the brink. But a proactive asset protection strategy changes all of that. The timeline of events that precede a boom are vitally important. Below is what it could look like.
Obtain Capital
The first step on the path to preventing that boom is getting the money you need to perform your operations successfully, which isn’t always easy in a retail environment. Sometimes costs are under heavy control. So you need to do your homework. Know the resources you will require and have them costed thoroughly. Look to the more innovative, hands-off ways of effective loss prevention. You may end up proposing a cost saving or future cost avoidance instead of requesting an increased budget. Finding innovative ways to use your budget will help you build a proposal that works for you and the company as a whole. Have a defined strategy from the outset to make sure you get the most from the whole process. Think about new ways of doing things, such as: ■ Using WiFi, RFID, Bluetooth, and GPS to track products through your systems. ■ Developing a thorough supply-chain risk-management strategy. ■ Employing feature recognition to address negative event creators as well as to promote a better service experience.
Develop Team Skillsets and Design Your Organization
Once you have the budget, you need to set up your organization. You are now in a position to make your plans. Look at how you might do things differently to create better continued on page 28
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