November - December 2014 by Loss Prevention Magazine

LPPORTAL.COM | V13.6 NOVEMBER - DECEMBER 2014

LOSS PREVENTION

MAGAZINE THE VOICE OF LOSS PREVENTION

PRODUCTS IN MOTION

KEEPING PACE WITH THE GLOBAL SUPPLY CHAIN THREE VIEWPOINTS FROM A RETAILER, A SUPPLIER, AND AN ENTREPRENEUR NOISH: THE SCIENCE OF SAFETY 2015 LP PRODUCT SHOWCASE AND RESOURCE GUIDE

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CONTENTS

6 PUBLISHER’S LETTER LP Research Needs Your Support By Jack Trlica

Products in Motion

8 ON THE WEB

An overview of the global retail supply chain

10 RETAIL SPONSORS 12 INTERVIEWING Not Everyone Is Hannibal Lector By David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

By Jacque Brittain, LPC, Editorial Director, Digital

24 ACADEMIC VIEWPOINT The Dark Side of Good Customer Service By Richard C. Hollinger, Ph.D.

36 EVIDENCE-BASED LP ImpactX Conference: LP on the Move By Read Hayes, Ph.D., CPP

Assessing Today’s LP Industry

38 PARNERING WITH RETAILERS Staying Safe with Online Vehicle Sales By Kevin Black, eBay

Three viewpoints from a retailer, a supplier, and an entrepreneur

By James Lee, LPC, Executive Editor

48 DIGITAL DIALOGUE Slowing Down the Game By Jacque Brittain, LPC 50 ASK THE EXPERT No Training, No ROI With Gerald Becker, USS

NOISH: The Science of Safety

68 CERTIFICATION Real-World Perspective With Christyn Keef, LPC, Walmart

A government agency supporting retailers’ safety initiatives

By Dr. Vern Putz Anderson, Ph.D, CPE, NOISH

70 INDUSTRY NEWS - Robust Growth Forecasted for Real-Time Location Systems - Steve Woodland Will Be Missed By Robert L. DiLonardo

2015 Product Showcase and Resource Guide

CALENDAR

ADVERTISERS

72 PEOPLE ON THE MOVE

2015 LP Product Showcase and Resource Guide

VENDOR SPONSORS

74 PARTING WORDS November 4th Was Election Day By Jim Lee, LPC

A special section for retailers looking for product and service solutions 4

ANNUAL INDEX

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PUBLISHER’S LETTER

MAGAZINE

LP Research Needs Your Support

ow does a loss prevention executive make choices about what programs and technologies to implement in his or her company? It used to be mostly determined by trial-and-error based on their own experience or the experiences of their peers—so-called “gut feeling.” Although personal experience and networking with peers are still important considerations to contemporary professionals, more and more decisions are being influenced by research. For the past fifteen years, ECR Europe has conducted loss prevention research through their Shrinkage and On-Shelf Availability group. We have published some of the results from their studies over the years. Currently, our sister publication, LP Magazine EU, is publishing a series of articles by Colin Peacock that shares some of the findings. His articles “15 Years and 15 Best Practices That Can Help Retailers Sell More and Lose Less” in the Autumn edition and “The 11 Habits of Low-Shrink Retailers,” in the current Winter edition are both well-worth your reading. You can check them out at LPportal.eu. For almost the same length of time, the Loss Prevention Research Council (LPRC) based at the University of Florida has been conducting research for its retailer and vendor members. Dr. Read Hayes, the LPRC managing director and chief scientist, has been an ongoing contributor to our magazine with his Evidence-Based LP column. I have been associated with the LPRC as an advisor for most of the past ten years. I recently attended the organization’s tenth annual conference where both members and guests not only hear about some of the research results, but actually contribute to determining what research is conducted each year. The information available through the

LPRC is definitely contributing to better decision-making and return-on-investment by LPRC members. It’s an organization worth checking out at LPresearch.org. The University of Florida’s Dr. Richard Hollinger, also a magazine contributor since 2001, continues to publish the well-known National Retail Security Survey in conjunction with the National Retail Federation. You can request a copy of the latest NRSS study by contacting Dr. Hollinger at rhollin@ufl.edu. The Retail Industry Leaders Association, Food Marketing Institute, and other associations are also engaged in studies that support the LP industry. One of the only worldwide studies of LP trends is the Global Retail Theft Barometer, which is conducted every two years. In early November the magazine hosted a webinar that presented the highlights of the 2013–2014 study. You can access the archived webcast at our website, LPportal.com. You can also visit GlobalRetailTheftBarometer.com to request a copy of the study. I mention all these various studies and research organizations to encourage you and your company to get involved. While great strides have been made over the past ten to fifteen years, there is much more to be done. Research requires a long-term commitment of both time and money to achieve results. It can only be done successfully as an industry-wide effort. While the commitment is a significant one, the positive impact to the retail industry is even more significant.

Jack Trlica Editor and Publisher

LossPrevention, LP Magazine, and LP Magazine EU 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.

NOVEMBER - DECEMBER 2014

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700 Matthews Mint Hill Rd, Ste C Matthews, NC 28105 704-365-5226 office, 704-365-1026 fax EDITOR AND PUBLISHER Jack Trlica JackT@LPportal.com EXECUTIVE EDITOR James Lee, LPC JimL@LPportal.com EDITORIAL DIRECTOR, DIGITAL Jacque Brittain, LPC JacB@LPportal.com CONTRIBUTORS Robert L. DiLonardo Dave DiSilva Read Hayes, Ph.D., CPP Richard C. Hollinger, Ph.D. Walter Palmer, CFI, CPP, CFE Gene Smith, LPC Shane G. Sturman, CFI, CPP David E. Zulawski, CFI, CFE CHIEF OPERATING OFFICER Kevin McMenimen, LPC KevinM@LPportal.com DIRECTOR OF MARKETING Merek Bigelow MerekB@LPportal.com DIRECTOR OF DIGITAL OPERATIONS John Selevitch JohnS@LPportal.com SPECIAL PROJECTS MANAGERS Kat Houston, LPQ Justin Kemp, LPQ Karen Rondeau DESIGN & PRODUCTION SPARK Publications info@SPARKpublications.com 704-844-6080 CREATIVE DIRECTOR Larry Preslar ADVERTISING

ADVERTISING MANAGER Ben Skidmore 972-587-9064 office 972-692-8138 fax BenS@LPportal.com EAST COAST REP Kristie Thymes 972-782-9841 office 972-692-8138 fax KristieT@LPportal.com SUBSCRIPTION SERVICES

NEW OR CHANGE OF ADDRESS myLPmag.com POSTMASTER Send change of address forms to Loss Prevention Magazine P.O. Box 92558 Long Beach, CA 90809-2558 LossPrevention aka LP Magazine (USPS 000-710) is published bimonthly by Loss Prevention Magazine, Inc., 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105. Print subscriptions are available free to qualified loss prevention and associated professionals in the U.S. and Canada at www.myLPmag.com. The publisher reserves the right to determine qualification standards. International print subscriptions are available for $99 per year payable in U.S. funds at www.LPportal.com. For questions about subscriptions, contact circulation@LPportal.com or call 888-881-5861. Periodicals postage paid at Matthews, NC, and additional mailing offices.

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ON THE WEB

EDITORIAL BOARD

The holiday season is here, and it is the busiest time of year for all of us, especially those of you in the retail industry, but also those who serve the industry, including the team here at LP Magazine.

Leo Anguiano, LPC Senior Director, Asset Protection Rite Aid

Karl Langhorst, CPP, CFI Corporate Director, Loss Prevention, The Kroger Co.

Jim Carr, CFI Senior Director, Global Loss Prevention, Rent-A-Center

Bob MacLea Senior Vice President, Loss Prevention, TJX

Francis D’Addario Emeritus Faculty Member, Strategic Influence and Innovation, Security Executive Council

John Matas Vice President, Loss Prevention, Investigations, & Technology, Macy’s

New Look, New Feel

LPportal.com—Your Resource to All Things LP—Is Changing As this issue hits your mailboxes, the new LPportal.com will be hitting your desktops, mobile devices, and tablets. We hope you find LPportal.com truly is the resource for all things loss prevention related. The site is fully responsive across all devices, making it easier to read all the great content, easier navigation to find the subjects you’re interested, and an updated look and feel. Why did we update our site? To make getting the latest news impacting loss prevention professional more accessible and current for you.

Charles Delgado, LPC Vice President, Asset Protection, Meijer

Spotlight on Digital Security

You would be living under a rock not to realize that digital security is one of the biggest topics impacting the retail industry at large. Check out our latest column featuring various subject-matter experts, including consultants, solution providers, and retailers, all with perspectives and expertise to share. Our first column launched in November featuring Wendi Whitmore, vice president at CrowdStrike Services on the subject of cyber-insurance. Read her article on LPportal.com.

Patti Felz Vice President, Loss Prevention, Polo Ralph Lauren Scott Glenn Chief Security Officer, Sears Holdings

Magazine Annual Conference

Part of the magazine’s preparation for 2015 is hosting an annual meeting of our editorial board, invited retail guests, and our vendor advisory partners. This year’s meeting was Powered by LP Magazine in Savannah, Georgia, with well over 100 industry executives in attendance. Check out a recap of the meeting on our EyeOnLP video page.

EYEONLP

Tim Gorman Divisional Vice President, Loss Prevention, Asset Protection and Business Continuity, Walgreens Barry Grant Chief Operating Officer, Canadian Images Bill Heine Senior Director, Global Security, Brinker International Frank Johns, LPC Chairman, The Loss Prevention Foundation

Two Are Better than One

At least we think so as it relates to the LP Magazine app and the version 2.0. The newest version of the app includes in-app videos, podcasts, bookmarking, more news categories, and links to the latest association conferences and events across the industry. It’s our way to get more relevant LP news to you—when you want it. The new version is available on both iPhone and Android devices. If you already have the app, it’s a quick update. If you don’t have the app, well then, what are you waiting for? Catch up! Scan the QR code here to find links to the version you need.

NOVEMBER - DECEMBER 2014

Chris McDonald Senior Vice President, Loss Prevention, Compass Group NA Randy Meadows Senior Vice President, Loss Prevention, Kohl’s Melissa Mitchell Director of Loss Prevention, LifeWay Christian Stores Dan Provost, LPC Vice President, Global Loss Prevention, Staples Tina Sellers Director of Loss Prevention, Delhaize America Mark Stinde Vice President, Asset Protection, 7-Eleven Paul Stone, LPC Vice President, Loss Prevention and Risk Management, Best Buy

Gary Johnson Vice President, Loss Prevention, The Vitamin Shoppe

Claude Verville, LPC Vice President, Loss Prevention, Safety & Hazmat, Lowe's

Paul Jones, LPC Senior Director, Global Asset Protection, eBay

Stanley Welch, LPC Vice President, Director of Loss Prevention, JCPenney

Mike Lamb, LPC Vice President, Asset Protection & Safety, Walmart Stores U.S.

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

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INTERVIEWING by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP

Not Everyone Is Hannibal Lecter

hen we think of psychopathic personalities, our minds likely wander to Hannibal Lecter, Jeffery Dahmer, John Wayne Gacy, Ted Bundy, or The Joker—killers and sexual predators without feelings or emotions like our own; preying on the innocent for their own sick reasons. Psychopaths like many “illnesses” have a range from mild to severe and may be mixed with other personality disorders making them very complex individuals. These complex personalities are often grouped under the heading of “Antisocial Personality Disorder” in the Diagnostic and Statistical Manual of Mental Disorders, or are often simply referred to as psychopathy or sociopathy by the general public. A sociopath is different by definition and usually refers to someone who habitually violates the law without learning from his past mistakes. The psychopath does this as well, but he also lacks the ability to feel emotions. Over the years we have dealt with numerous psychopaths in both the public and private sectors. These people are remarkably different and need to be understood to develop successful strategies to deal with them. Although people toss the term “psychopath” around casually, they are probably classifying an individual as one, but it may simply be a person that has a milder antisocial personality with some emotional feelings. Only a qualified psychologist or psychiatrist can diagnose a personality disorder such as psychopathy.

Lying

While lying can be a component of psychopathy, the psychopath is very different from the compulsive liar. The compulsive liar lies out of habit, stretching the truth about things large and small. This behavior perhaps started in childhood as a defense mechanism for the individual’s low self-esteem. In fact, two of the key components we have seen over the years in these individuals are a general lack of success in life and low self-esteem. The compulsive liar often impulsively lies even when it is foreseeable his deception will be detected, so unlike the psychopath there is no attempt to con or manipulate another. Rather than the con, these lies are habitual and impulsive with little thought to the long-term effects the lies have on the teller. Sometimes these lies take on an aura of truth and success as they are told repeatedly, creating an imaginary image to

Zulawski and Sturman are executives in the investigative and training firm of Wicklander-Zulawski & Associates (w-z.com). Zulawski is a senior partner and Sturman is president. Sturman is also a member of ASIS International’s Retail Loss Prevention Council. They can be reached at 800-222-7789 or via email at dzulawski@w-z.com and ssturman@w-z.com. © 2014 Wicklander-Zulawski & Associates, Inc.

overcome the individual’s low self-esteem. The result is a background, story, or alibi that will not stand up to the bright light of an investigation. The psychopath’s lies are more insidious—consciously woven to con or manipulate another.

Psychopaths

Depending on the research, experts estimate psychopaths may make up two to three million people in the United States, which makes it possible that you may have met one. Men are more likely to become a psychopath than women, although female psychopaths do exist. Experts on psychopaths also estimate as much as 25 percent of the male prison population may be psychopaths. Since the psychopath lacks feelings of guilt and remorse that provide a moral compass, it should not be surprising to find they have broken the law and wound up in prison. Plus, the psychopath lacks the ability to have emotional responses, thus even fear and anxiety are muted. Fear and anxiety are essential components of having a conscience, so it is no wonder the law is broken. Not all psychopaths wind up in prison. One expert examined over 200 corporate executives and found 4 percent scored high enough on the psychopathy scale to be evaluated for it. Once we see the lack of guilt, the all-about-me attitude, and a devious, manipulative manner, it is easy to see how an organization can be led off track by a psychopathic leader playing fast and loose with the rules. The corporate psychopath is generally outstanding at self-promotion and has a grandiose sense of self with a general disdain for other employees in the workplace. They are often described as selfish, self-centered, and irresponsible—treating people as if they were mere objects, rather than valued coworkers. These types of people often turn to fraud since they are charming, self-assured, and generally unfazed by the possibility of their dishonesty being discovered. While many criminals may exhibit some of the traits of the psychopathic personality, what makes them different is the ability to feel guilt, emotional attachment, and empathy for others. They understand what it means to feel emotions, and at least partially experience the emotions themselves. While the psychopath does not experience these emotional states, he is incredibly adept at recognizing another’s emotions

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continued on page 14 |

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and then exploiting them. They can immediately assess a person and size them up quickly, which helps in the ultimate manipulation of the individual. Many of the researchers who study psychopaths describe them as chameleons, capable of changing masks to meet the needs of each person they speak with. They know the buttons to push to manipulate while being indifferent to the individual’s suffering, allowing them to use the person for their own needs.

Not all psychopaths wind up in prison. One expert examined over 200 corporate executives and found 4 percent scored high enough on the psychopathy scale to be evaluated for it. Once we see the lack of guilt, the all-about-me attitude, and a devious manipulative manner, it is easy to see how an organization can be led off track by a psychopathic leader playing fast and loose with the rules. The psychopath often has excellent communication skills, letting him jump into a conversation where others might fear to tread. They often have a grandiose sense of their own self and intelligence. What the psychopath lacks in content is covered by his flamboyant manner and use of industry-favored jargon. People listening to a psychopath tend to not drill down into the message, but are left impressed with the delivery of the words. Other psychopaths are socially inept and turn to threats and violence to get their way, often resulting in a visit to prison. This type of psychopath is generally screened out during the hiring process or quickly terminated for cause. The psychopathic personality shows no loyalty to anyone other than himself. As a result their attachment to another is often only superficial, allowing him to change partners at will. Many psychopaths are also strongly narcissistic. To him, he is the sun and center of the universe while the rest of the human race revolves around his countenance. Psychopaths would be unlikely to get along with one another since they would be similar types of personality—self-centered, aggressive, manipulative, and narcissistic. As a result if a psychopath has a partner, they are often within the normal range, but having elements of antisocial behavior. The use of alcohol has a profound effect on the psychopath, prompting most to become loud, vulgar, and domineering. This may cause them to engage in jokes or pranks that may appear cruel or bizarre.

The psychopath also is a master manipulator, using other people as puppets to gain his way. As an antisocial personality, the psychopath often has a grandiose image of himself, which depending on his severity, may range from a passive to an exploitative individual. These individuals certainly are capable of articulating a society’s morals, but can never fully internalize them to their actions. These individuals also have no need to rationalize their behavior since they do not feel guilt for violating society’s moral requirements. They simply act out in a ruthless fashion to gain what they want regardless of its impact on others. Some of borderline psychopathic individuals do not have the antisocial or narcissistic components to their personality. However, they still have a split that separates them from guilt and its resulting anxiety. These individuals may have some remorse and concerns for others that may come into play, but only after they have acted to gain what they wanted.

Evaluating for Psychopathy

Dr. Robert Hare, who has worked extensively with psychopaths, has created a widely used scale to evaluate people for psychopathy. In his scale he examines a list of twenty criteria that is evaluated with a score of 0 if it doesn’t apply to the person, 1 if it partially applies, or 2 if it fully applies. Following is his full list: ■ Glibness and superficial charm ■ Grandiose sense of self-worth ■ Pathological lying ■ Cunning and manipulative ■ Lack of remorse ■ Emotional shallowness ■ Callousness and lack of empathy ■ Unwillingness to accept responsibility for actions ■ Tendency to boredom ■ Parasitic lifestyle ■ Lack of realistic long-term goals ■ Impulsivity ■ Irresponsibility ■ Lack of behavioral control ■ Behavioral problems in early life ■ Juvenile delinquency ■ Criminal versatility ■ History of parole violations ■ Multiple marriages ■ Promiscuous sexual behavior A full-blown psychopath would score 40, while a score of 25–30 or more qualifies for a diagnosis of psychopathy in Hare’s scale. Scores between 21–29 are considered middle subjects who have many of the features of a psychopath, but do not fit all the criteria. A score under 21 is in the non-psychopathic range. Psychopaths are extremely difficult people to interview. The emotional appeal we advocate be used on the average person is extremely unlikely to be successful. In our next column we will discuss interview and interrogation strategies that may be helpful in dealing with these personality types. For those that might be interested in exploring the psychopathic personality further, we would suggest going to certifiedinterviewer.com for a list of reference material.

NOVEMBER - DECEMBER 2014

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COVER FEATURE

PRODUCTS IN MOTION

KEEPING PACE WITH THE GLOBAL SUPPLY CHAIN By Jacque Brittain, LPC, Editorial Director, Digital

PRODUCTS IN MOTION

he supply-chain network is a critical component of the retail machine. While many in retail may view the heart of retail as the interactions and events that happen within the store, this support system has always fueled the way. Through a complex web of processes and activity, a well-managed supply chain is absolutely essential to a successful retail operation. Merchandise doesn’t magically appear on the shelves of our stores and into the hands of our customers. When we consider that every single piece of retail merchandise must in some way pass through the supply-chain network, it’s easy to see the need to implement appropriate controls and protect our interests as product moves throughout the network and, ultimately, makes its way to our customers. For many seasoned loss prevention professionals, the importance of sound supply-chain policies and practices is nothing new. However, expanding our knowledge and understanding of this essential aspect of the retail enterprise is something that we all can benefit from, and puts us on common ground as the industry moves forward. The role of loss prevention across the supply chain has grown considerably in recent years, and continues to expand even today. The advancements in technology, the evolution of e-commerce and Omni-channel retailing, and the mounting sophistication of retail crime will continue to revolutionize our role throughout the supply-chain network. As this role grows more complex, our approach to the entire process must evolve as well. As a critical element of our overall programs, this function is much more sophisticated than making sure that receiving doors are locked, cargo is secured, and logs are signed. That image and mentality must change to reflect the true nature of the management process within the supply chain. We’ll begin our in-depth look at supply-chain issues with a high-level overview of some key supply-chain network fundamentals to set the groundwork for future articles.

Managing a Process

Supply-chain management encompasses the planning and management of the

The role of loss prevention across the supply chain has grown considerably in recent years, and continues to expand even today. The advancements in technology, the evolution of e-commerce and Omni-channel retailing, and the mounting sophistication of retail crime will continue to revolutionize our role throughout the supply-chain network.

many activities involved in sourcing, procurement, conversion, and logistics management for the business. It involves planning and processing orders; handling, transporting and storing the products purchased, processed and/or distributed; and managing the inventory of goods in an efficient and coordinated manner. The primary objective is to fulfill business demands through the most efficient use of resources. By maintaining effective control over inventories and distribution, the supply chain seeks to match and manage supply with demand to reduce costs, improve sales, and enhance company profitability. Efficient and effective supply-chain networks are necessary to successfully compete in the global retail market. It then rests on the loss prevention professional to take the necessary steps to gain a better understanding of the overall supply-chain process and how the process impacts the business so that we can effectively support shrink reduction and profit-enhancement efforts. In terms of understanding, even the term “supply chain” can be viewed as a misnomer. This is not merely a seamless link of interconnected, proportional pieces that takes us from a point of origin and leads to a single ending destination. NOVEMBER - DECEMBER 2014

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It is a sophisticated, interdependent network of positions, processes, facilities, functions, responsibilities, tasks, transport, and technology that all culminates with delivering products and services to our customers. From a loss prevention management perspective, our attentions must then focus on disruptive risk. As described by one industry leader, “Assuming the enterprise has taken the necessary precautions to ensure product quality, integrity, and safety, the primary risk to any organization posed by the supply network is disruption. Any disruption in production or delivery will result in potential lost sales, decreased revenue, margin erosion, and profit loss.” These risks can exist at each origin location, at each intermediate location through which the product travels, and along each transportation link between points. Companies must design operational plans that will serve to identify potential threats; evaluate how, when, and where they may occur; develop effective approaches to mitigate losses; and build programs that improve efficiency and business recovery. Theft is certainly a primary consideration, but specific risks will vary depending on a variety of factors specific to the unique

PRODUCTS IN MOTION supply-chain network. The potential risks must be identified and analyzed at each point along the network, building the plan that serves as the cornerstone of supply-chain resiliency. But where do we start? What are our greatest risks? What are the primary factors that will influence the success of the plan? How do we determine where to focus our attention and resources? These are just some of the questions facing our industry leaders as we access the risks and construct our plans.

Where Does Your Supply Network Begin?

Clearly, the first step of this process is to secure the products that we wish to offer for sale. As retailers we want to offer quality products, obtain the appropriate quantities of product balanced with customer demand, get those products in the hands of our customers as quickly as possible, and manage the entire operation through the most economical and cost-effective

means. Where the product is coming from can significantly impact each of these key management variables. The point of origination for our products could involve a vast array of sources from across the world, and through different product channels depending on any number of factors that might influence supply, demand, purchasing, and product movement. Does the product have to pass through customs? If the products are manufactured internationally, are the products flown in or does the product pass through our ports system? Are climate or weather issues a consideration in securing these goods? Are there political, labor, regulatory, or other business considerations? There are a host of issues that must be managed to simply secure the products that we wish to offer for sale, each of which can significantly impact the success and profitability of the entire business, and each of which can pose potential points of risk. Even before the product is owned, such risks can impact supply,

The numbers aren’t good, team. Ou r shrink is through the roof and our high-theft merchandise is under attack dai ly. but we can’t lock everything up - that’s a death wish to sales!

product costs, and other factors that can directly influence the business. Yet while the point of origin is important in setting a foundation, it is the point where we establish ownership that is a critical determination. This not only establishes the right of proprietorship, but also the assumption of responsibility for the products. With the current complexity of the world trade market, the actual point where we assume ownership of products can be determined in many different ways, and at different points depending on specific contract negotiations and a number of other factors. Ownership determination will vary from company to company and in some instances may even vary depending on the particular product. But at the point where we assume ownership, are we getting what we paid for? Is it the correct quantity? Is it the correct product? Is it the correct price?

International Security Concerns

Another primary point of risk is found when goods cross international

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STORE

ASSEMBLY COMPONENTS

GLOBAL SUPPLY CHAIN borders. Customs is responsible for controlling the flow of goods into and out of a country. Generally speaking, imported goods may not legally enter the U.S. until Customs and Border Protection has authorized delivery of the goods. Officers may inspect cargo before it is loaded onto vessels at a foreign port destined for the US, while in transit, and at the first port of entry where the goods arrive. Inspectors may board ships, planes, rail cars, and trucks in order to thoroughly inspect shipments. The goal is to achieve a sufficient level of security without jeopardizing the efficient flow of legitimate commercial trade at the border. Without debate the process is absolutely critical for many reasons. However, there are several potential challenges that can result from the inspections process. Inspections can cause substantial delays, product damage, spoilage of perishable items, and compromised shipment integrity that may lead to other loss prevention concerns. Transportation costs can increase when containers sit at the ports waiting to be cleared. Regardless of the circumstances there are costs, and risks, and protocols that must be managed. If the process is not managed properly our risks increase, leading to shrink concerns, lost sales, lower profits, and customer service issues.

C-TPAT

Unfortunately, some risks extend beyond product loss, theft, damage, or like issues, and carry the potential to create much more impactful considerations. The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary government-business initiative designed to build cooperative relationships that strengthen and improve both international supply chain and US border security. The C-TPAT initiative asks businesses to ensure the integrity of their security practices and communicate similar guidelines to their business partners throughout the international supply chain. These principles have been adopted by the World Customs Organization and the international trade community, and similar programs are being developed and implemented worldwide. All ultimately have the save primary goal—to stop abuses of commercial trading lanes by terrorists and others who seek to corrupt the process. The premise of C-TPAT is fairly simple—if a company has well-conceived and appropriate internal controls in place, they can enhance the likelihood that their products will arrive on time, intact, and without dangerous or unwanted goods substituted for the products that they expected to receive. This requires stringent NOVEMBER - DECEMBER 2014

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internal controls regarding facilities, personnel, supply-chain procedures, computer systems, and other critical functions not only at US facilities, but all over the world. Importers are expected to partner with foreign suppliers and worldwide business partners to secure their supply chain and ensure that internal controls are adopted and implemented. (To read more about C-TPAT, see “Securing the Supply Chain Against Terrorism” in the November-December 2002 issue at LPportal.com.)

Risks In-Transit

The temptation for thieves to attack goods in-transit dates back to the days of piracy and highwaymen. The reason is simple—goods in-transit are the most vulnerable to predation. Retail merchandise moves fairly anonymously across the nation’s roads, rails and highways, through jurisdictions with varying resources and differing abilities and/or willingness to prosecute if and when individuals are apprehended. As a result cargo-theft incidents are often less likely to be given high priority when compared to many other types of crimes. Deterring these losses therefore mandates attention to security and loss prevention practices, strong operational

PRODUCTS IN MOTION controls, cooperation among participants in the supply chain, and a variety of investments in safeguarding cargo. But it also requires enhanced awareness. For retailers moving goods attractive to thieves, paying attention to in-transit product and loss prevention management should be a fundamental and daily part of doing business. This isn’t as simple as “a box falling off the back of a truck,” and shouldn’t be perceived that way. Such incidents can be highly sophisticated operations that can be dangerous as well as financially devastating. As the supply chain continues to grow more complex, so does the criminal element that leaches off of our legitimate business. One of the biggest challenges involves organized retail crime (ORC) and the potential disruption that can result. ORC incidents can occur at any point along the supply chain, whether at the point of manufacture, on loading docks, rail stations, distribution centers, or potentially anywhere along the transportation route. Thefts can range

from smaller, subtle quantities that are part of larger shipments to aggressive, armed hijackings involving entire truckloads of merchandise. ORC groups will take advantage of practically any opportunity to steal product that is vulnerable to theft and will potentially produce large profits. Thefts are often preplanned, highly coordinated, and well-executed. Many operations are managed to the point that they know exactly what they are targeting and have the ability to move, reload, and redistribute stolen goods within hours. The stolen goods may be moved quickly to a warehouse, off-loaded, repackaged, re-manifested, and placed on another vehicle—often before the theft is discovered by the company or reported to the appropriate authorities.

In-Transit Methods

Members of organized groups have for decades stolen full and partial shipments and/or loaded trucks while they were in transit. These incidents can occur in a

number of different ways. For example, many hijacking incidents occur while a driver is away from the truck, such as at dinner or on a break, and thieves simply break into the vehicle and drive off with the goods. In other instances, hijackers will target a vehicle and forcibly enter the cab while the driver is in the vehicle. Freeway on and off-ramps, rest stops, and other common stopping points are particularly dangerous. Another common method is to coerce the driver into making an unplanned stop by having someone gain the driver’s attention while they’re driving. This individual may falsely inform the driver that something is wrong with their vehicle or may use other persuasive tactics to convince the driver to stop the vehicle. Once the driver pulls over and the vehicle stops, accomplices arrive to steal the rig. A technique favored by ORC groups targeting trucks or containers loaded with high-tech and high-value merchandise is the “grab and run.” Often traveling in vans or similar vehicles, they follow a

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PRODUCTS IN MOTION

Merchandise doesn’t magically appear on the shelves of our stores and into the hands of our customers. When we consider that every single piece of retail merchandise must in some way pass through the supply-chain network, it’s easy to see the need to implement appropriate controls and protect our interests as product moves throughout the network and, ultimately, makes its way to our customers. improved response, advanced information and communication management, safety practices, employee screening programs, and robust training programs that provide necessary and appropriate information to our employees at every step along the way.

Distribution Centers

targeted vehicle, waiting for the vehicle to stop. Once the rig stops, several individuals will forcibly break into the cargo area and off-load as much product as they can. This is also a common technique used when employee vehicles are used to transport valuable goods, such as jewelry, from one store to another. Naturally, deception is another common method. Thieves may tamper with trailer/carton seals and/or locks in order to conceal trailer break-ins, or tamper directly with the container or trailer to commit these thefts. Leakage incidents may involve the theft of entire cartons, or removing desired product from within a carton and resealing the packaging to attempt to conceal the theft. ORC groups have even used individuals that present themselves as legitimate drivers at shipping facilities, using counterfeit paperwork or even electronic shipment information in order to gain access to and make off with valuable loads. Effective strategies must be developed that are well-planned; combining the latest advancements in technology with industry-best practices, robust security procedures, and fundamental loss prevention methodologies. Such practices would include enhanced awareness efforts,

Distribution Centers are often viewed as the foundation of the supply-chain network, establishing a centralized location from which we can stock and distribute products to the stores or directly to our customers. While basic designs and functions may be similar, each facility is also vastly unique based on the organization, the types of products, and the special needs of the business. These complex operations can house volumes of merchandise, equipment, supplies, and employees in order to meet and maintain our primary business objectives. While often viewed as simply a project-specific, labor-intensive venture, the actual mission of the distribution center operation is vitally strategic and tactically calculated. Coordinating the concurrent needs of the stores, our customers, suppliers, buyers, inventory control, transportation systems, and other services and service providers is a formidable task to keep product moving efficiently and contributing to our companies’ profits. “Today’s distribution center can house thousands of SKUs, with some of the larger facilities managing the inventory for several hundred stores in a single location,” says one industry expert. “Teams must ensure the accountability of the freight at all times throughout the product cycle, to include accurate receiving protocols, proper storage of the freight in its designated location, cycle counting, and order pulling and shipping of merchandise to the correct location.” NOVEMBER - DECEMBER 2014

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This isn’t simply an exercise in moving boxes from one site to another. This is about product flow and speed to market, driving replenishment, maximizing sales, and maintaining quality customer service while minimizing losses, damage, and theft of goods. All of this requires cutting-edge loss prevention management, with progressive programs and proactive strategies that build on modern technologies and contemporary supply-chain management strategies and design. Every function, every process, and every practice must be continuously reviewed and reevaluated to help control costs and maximize efficiency. Depending on the particular company, a retailer may purchase and sell tens of thousands of products. Goods typically arrive in bulk and are stored in the distribution center until needed by the retail location. Products are then retrieved and assembled into shipments before being forwarded to stores or directly to customers. And throughout every stage of the process, there are opportunities for loss. The efficient processing of goods through the distribution center plays an essential role for the entire business operation. Every facility must be specifically designed to provide for the safest, fastest, most secure, most efficient and cost-effective control and movement of our retail products, and our loss prevention efforts must complement the process. Vulnerabilities extend well beyond basic physical security measures and access controls, and we must show the same proactive, cooperative insights that have helped to build our success in other areas of the business.

DC Risks

Identifying the potential source of theft risks within a distribution facility are typically not hard to determine. Access to the facility is managed. Activities within the facility are controlled. In the stores there is public access to the building. However, this is clearly not the case in the DC environment. In plain terms the most likely way for theft activity to be successful in our distribution centers is if employees are involved. Often the greatest opportunities for losses in the distribution center continued on page 22

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PRODUCTS IN MOTION

continued from page 20

involve collusion between multiple parties—especially between drivers and the employees that load and unload trailers. Merchandise within the distribution center is at its greatest risk when trucks are being loaded and unloaded, which is a time frame that is particularly chaotic with individuals largely concerned with loading or unloading the trailer and getting the truck away from the dock. With attentions typically focused on labor and speed, employee interest can be diverted, leading to enhanced risks and greater opportunity. The possible infiltration of our associates by organized criminal groups is also a threat within the DC environment. Perpetrators may gain access through temporary agencies when services are needed, such as during peak selling seasons. Employees with ORC ties may simply hire into the company in order to gain access to merchandise, information, and opportunity. Existing employees may be recruited by ORC operations to participate in illicit activities. Individuals that hired in with honest intentions may also observe and exploit opportunity, and make poor life decisions as a result. While the direct theft of merchandise is an ongoing concern, the theft or disclosure of information can be just as problematic. Shipment and product information, seals and seal sequences, delivery schedules, truck routes, and other relevant information can be divulged to assist with hijackings and similar operations. Blank forms may be pilfered to create fraudulent documents. Alarm information, CCTV placement, internal layouts, rosters, schedules and shift changes, and other

important operational information may be shared or exposed. Additional actions may include intentionally damaging or blocking CCTV or other security equipment, removing batteries from alarmed doors, leaving outside doors or security enclosures opened or unlocked, purposeful distractions, or simply “looking the other way” when the need arrives. Any and all opportunities may be exploited depending on the complexity and motivations of those involved.

Establishing a Culture

The supply-chain network demands control to drive efficiency and productivity. Setting the tone early and often by maintaining direction and enforcing rules sends an important message and helps establish a culture of safety, control, and honesty. This is why the fundamental aspects of loss prevention provide such an important barometer of program success. Failure to control basic support functions is an indicator of greater opportunities which in turn can significantly influence the scale of involvement throughout the entire network. Creating and implementing policies, practices, and procedures that serve to establish workable controls is an important step. But this must be coupled with appropriate resources to support the control measures as necessary, to include adequate attention and staffing. Programs must be regularly reviewed and monitored to ensure effectiveness, efficiency, relevance, and application. Most importantly, this must have the support of all levels of management, to include implementation, maintenance, enforcement, and resolution. Finally, as an industry we must improve our knowledge, awareness, and education regarding the entire supply-chain network. Programs such as the supply-chain course NOVEMBER - DECEMBER 2014

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within the LPC certification coursework provide a tremendous resource. But we must also open more effective channels of communication with subject-matter experts, especially those within our own organizations, to gain a more comprehensive understanding of this critical aspect of the retail business. As emphasized by one industry leader, “Within our industry there is a tendency to place the roles of loss prevention in the stores and in the supply chain in very different buckets. However, closer inspection defiantly puts things into a different perspective, as these roles are often much more similar than they are different. I would encourage each of you to pause for a moment and reflect on some of your dealings with your fellow loss prevention peers who work in the supply chain. If you haven’t already done so, take some time and get to learn more about this aspect of the business. If possible, look for opportunities to do some cross-training in these partner departments. Make the effort to expand your professional horizons. These lessons will go a long way in building relationships and adding value your organization and your future.” Many of the topics discussed here merely scratch the surface of the complex challenges faced within the supply-chain network. There are a broad scope of opportunities for us to explore, many of which haven’t been addressed in our brief overview. Look for more in-depth articles from LP Magazine in the coming months. For some this may open the doors of opportunity that lie within the supply chain for growth and development. For others it may serve as a simple reminder of a side of the business that doesn’t always hold our full attention. For all of us, it should serve as a notice that the role of loss prevention is expanding, and we have a definitive responsibility to keep pace.

ACADEMIC VIEWPOINT by Richard C. Hollinger, Ph.D.

The Dark Side of Good Customer Service

ne of the most commonly held principles of shrinkage reduction, especially for shoplifting deterrence, is achieved by giving good customer service. This idea is predicated upon the assumption that if potential thieves enter the store, they will be deterred from stealing if sales associates quickly make contact with them by offering immediate customer service. The thief will then know that they have been recognized by staff, and their behavior is now being observed in person or by camera. The hope is that if they have criminal intentions, they will soon leave the store and decide not to steal because the LP and sales employees have recognized their presence. In short, the “good customer service” dictum sends an indirect message that “we know you are here.” Moreover, if the thief has a desire to steal from the establishment, there is a significant likelihood that they might not get away with the theft while sales associates and LP staff are watching. One of the very first things that a sales associate in retail is taught on their first day on the job is to promptly approach all customers as they enter the store and welcome them by offering a verbal welcome and excellent service. A recent article published in a marketing journal, however, raises the possibility that customer service can be so good that it actually encourages crime. The argument suggested is, if the relationship between the sales associate and the customer is pre-existing or becomes too strong, it is possible that this close personal relationship could eventually lead to sweethearting. These marketing scholars who are joining hands with both psychologists and criminologists have empirically examined for the very first time the nature of the employee-customer dyad relationship in order to determine what might be the antecedents and consequences of providing such good service and satisfaction that customers are getting the product for free.

discounted goods and services to customer conspirators. The authors gathered dyadic data from 171 service employees and 610 of their customers. They then compared questionnaire responses to relevant items that determined the relationship between the customers and staff plus their attitudes toward the store. The results from the employee data reveal that a variety of job, social, and remuneration factors motivate sweethearting behavior and

Service Sweethearting

several measurable employee traits suppress its frequency. The results from the customer data indicate that although sweethearting inflates a firm’s satisfaction, loyalty, and positive word-of-mouth scores by as much as 9%, satisfaction with the confederate employee fully mediates these effects. Thus, any benefits for customer satisfaction or loyalty initiatives are tied to a frontline worker that the firm would rather not employ. Marketing managers can use this study to recognize job applicants or company settings

The research article that I am referring to is entitled “Service Sweethearting: Its Antecedents and Customer Consequences” by Michael K. Brady, Clay M. Voorhees, and Michael J. Brusco in the March 2012 issue of the Journal of Marketing. Following is the abstract from the article: Sweethearting is an illicit behavior that costs firms billions of dollars annually in lost revenues. Sweethearting occurs when frontline workers give unauthorized free or

Dr. Hollinger is professor and chair of the Department of Sociology and Criminology & Law at the University of Florida, Gainesville. He is also director of the Security Research Project, which annually conducts the National Retail Security Survey. Dr. Hollinger can be reached at rhollin@ufl.edu or 352-294-7175. © 2014 Richard C. Hollinger

Not accounting for sweethearting in the customer experience could significantly inflate customer satisfaction scores, loyalty levels, and positive word-of-mouth opinions. This study suggests that one of the principle reasons why customers like coming— and returning—to your stores to “shop” may involve the substantial discounts that they are receiving from your dishonest employees.

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that are particularly prone to sweethearting and as the basis for mitigating a positive bias in key customer metrics. Without getting too deep into the details of this complex research study, it is clear that the hypotheses that the researchers examined were based upon the existing literature on employee theft and workplace deviance, some of which was mine. To summarize the results, they found that “results indicated that sweethearts had significantly more favorable assessments of and intentions toward both the employees and the firm.” In other words those customers who have developed sweethearting relationships with your employees who really liked coming to your stores to get free or discounted merchandise. The results suggest that not accounting for sweethearting in the customer experience could significantly inflate customer satisfaction scores, loyalty levels, and positive word-of-mouth opinions. In other words this study suggests that one of the principle reasons why customers like coming—and returning—to your stores to “shop” may involve the substantial discounts that they are receiving from your dishonest employees.

Screening for Sweethearting Characteristics

We all recognize that positive customer-employee relationships are known to increase customer satisfaction and stimulate positive word-of-mouth opinions about retail

stores, hopefully increasing sales. However, until I read this paper I had not seriously considered that some liked shopping in our stores because a small number of our employees were regularly “hooking up” customers with merchandise and discounts that were directly inflating the levels of shrinkage and, thus, reducing the profitability of the firm. As the authors of this article put it, “in a worst-case scenario, managers might reward the very employees responsible for up to 35% of the profit losses.” The authors further suggested that perhaps we need to redouble our efforts to “identify the trait profile of the ideal frontline worker.” Pre-employment screening tests can head off sweethearting if we add measures that look for high scores on “personal ethics” and, alternatively, low scores on the “need social approval from others.” Minimizing the frequency of sweethearting should also be enhanced by avoiding applicants at the very high end of the risk-seeking scale. This revealing and counterintuitive research study on sweethearting is especially important as we enter the holiday season. We all know that some employees work at our stores during the holiday season for the primary reason to steal products for themselves or to give away products to their friends and family. Better preventative screening steps such as these might provide an effective buffer that “circumvents the need to implement oppressive security measures that alienate all front-line workers.”

LP MAGAZINE | NOVEMBER - DECEMBER 2014

THERE’S NO ONE ELSE LIKE YOU. s we enter the holiday season, we are reminded of the great privilege it is to serve you. Were it not for your ongoing pursuit of excellence within the loss prevention community, such outLossPreventionFoundation_Ad standing Texture.pdf 1 11/25/13 2:54 PMcould not be forged. Just as no two snowflakes relationships are alike, no two clients’ needs are alike. And it is an honor to know each and every one of you individually — not only as clients, but as friends. We thank you for your loyalty and wish you the very best of the holidays.

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ENTREPRENEUR

INTERVIEW RETAILER

SUPPLIER

ASSESSING TODAY’S LP INDUSTRY THREE VIEWPOINTS FROM A RETAILER, A SUPPLIER, AND AN ENTREPRENEUR By James Lee, LPC, Executive Editor

INTERVIEW EDITOR’S NOTE: This interview is with three long-time loss prevention industry veterans. One is a retailer, one is a solutions provider, and one started on the retail side before starting his own company offering LP solutions. We’ve chosen to not identify the individuals in order to allow them to speak freely without worrying about how their respective companies would edit their comments. That’s not to say that anything published here is necessarily controversial or inflammatory. What is most important is not who they are, but what their perspectives are, which we believe is representative of the majority of forward-thinking loss prevention executives. Whether you agree or disagree, we would love to hear your opinions. Write us at editor@LPportal.com. EDITOR: How did you first learn the business of retail and retail loss prevention? RETAILER: When I first started out, all the learning was on the job. There was no formal education process. There was no certification, nothing like LPQ or LPC, so you learned from others by traveling the store and trial and error. EDITOR: When you started as an hourly employee, did you think that someday you’d be a senior executive? RETAILER: No, but I fell in love with retail and with LP at the same time. LP gave me a launching pad to learn retail because working shoplifting details in the store, you visit all the departments, which forces you to learn the business. Because I happened to love retail, it caught my imagination. When I finished college, I went to work for a major retailer and started as an executive trainee. EDITOR: As a solutions provider, when you started off, did you think it was important to learn the business of retail and loss prevention in order to sell your product? SUPPLIER: I did. I started beating the streets early in my career with mom-and-pop retailers who experienced the same problems that department stores or big-box retailers had. They have dishonest employees and shoplifters just like everybody else. I had to learn their business, to understand what they did on a day-to-day basis in order to sell an effective solution. Across the last thirty years, I was lucky to be spoon-fed the systems that loss preventions executives now have as a matter of course—electronic

articles surveillance, CCTV, point-of-sale exception monitoring, and, now, RFID for inventory control. But in order to employ those solutions, you had to understand the business. You don’t treat a grocer, a specialty retailer, an electronics retailer, and an office-supply retailer the same. You had to understand

pushed me toward the loss prevention area. At the time I knew nothing about retail loss prevention. I actually had a lot of misconceptions. I thought I was going to be a guy in a jacket guarding a door, so I said, “No, thank you.” But as I learned about the different positions, and in particular the investigations positions, I became intrigued with the opportunities that were there, so I decided to give it a try. As far as how I learned the business, it was mostly peer-to-peer. The team I first worked with in retail was really helpful, showing me the guiding principles of loss prevention. Then as an investigator, I took it upon myself to learn the different roles in the store environment, understanding everything from the store manager to the department managers to the sales

Another dynamic is how young people think about jobs differently today and have different motivations than we may have had years ago. You can’t just say, “Well, they’re not like me, so they can’t be good.” That’s not true at all. You have to be open to that difference. Anybody who’s in a senior position better pay attention, because this is the wave of the future. You have to keep up. their business first in order to apply the most effective solution. EDITOR: As a business owner, how did you learn about loss prevention? ENTREPRENEUR: I started in the retail business, although I wasn’t planning on getting into retail loss prevention at the time. I actually applied for a part-time job to sell men’s suits to make some extra money. But because I came from an investigations background in government and the private sector, they NOVEMBER - DECEMBER 2014

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associates. What do they do? What are their responsibilities? I had to understand what they were supposed to be doing so that I could recognize when something was wrong. EDITOR: What’s different today in terms of skill sets, objectives, technology, than when each of you started? ENTREPRENEUR: Hands down, I would say technology is the biggest difference. The amount and the quality of data

INTERVIEW available has come light-years over the past two decades. In addition to the technology, the educational resources are much greater today. In the past, there was a lot we had to figure out on our own. Whereas today, there are webinars, college courses, certifications, and security programs that simply didn’t exist ten years ago, let alone twenty. I think if you’re going to take the position seriously, you’ll be looking not just at how the business works, but also at how the industry works. Taking the initiative to seek out these types of educational opportunities is critical to success in this field. RETAILER: I agree that technology has been a game changer, and related to that is the new way that people, especially younger people, communicate using smartphones and social media. Another dynamic is how young people think about jobs differently today and have different motivations than we may have had years ago. You can’t just say, “Well, they’re not like me, so they can’t be

good.” That’s not true at all. You have to be open to that difference. Anybody who’s in a senior position better pay attention, because this is the wave of the future. You have to keep up.

ENTREPRENEUR: That’s really

key—spending the time to understand the business and the challenges. If you have those relationships where the retailer understands that you listen to them to understand their issues and want to learn more about their business, opportunities will present themselves. Maybe you use them as a sounding board and say, “Listen, this might not even be something that you might be interested in, but can I bounce it off of you and get your perspective on how you think this would work in the industry?”

EDITOR: What suggestions do you have for young people starting out today? SUPPLIER: I hearken back to my father, who told me, “The people who know how to do something will always have a job. The people who know why will always be their boss.” So as a vendor, my advice to young salespeople who are getting into the business is to learn as much as possible about how the client retailer does business. We’ve all heard the objection, “Well, you don’t know what I do.” I gained my loss prevention certification in an effort to combat that objection. I think more vendors should endeavor to get into the LP educational process so there’s more of an assimilation when you walk into his office.

RETAILER: For young people starting

out in retail and LP, if you like the work, if you truly enjoy it, then keep going. If you don’t, don’t. But if you do enjoy it, I think you simply can’t learn enough. Ask questions. Find a mentor, which I think is critically important. It’s also critical to show enthusiasm and volunteer for new opportunities to get ahead. Tell your leadership that you want to go the extra mile. Tell them, “I want to work, and here’s what I want

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INTERVIEW to do. I want to get ahead.” Somebody once told me that you never go anywhere unless somebody else knows where you want to go. EDITOR: Talk about the value of mentoring in this business from both the retailer and vendor standpoint. SUPPLIER: Loss prevention executives, earlier in my career, mentored me and tried to help me understand what they did for a living and how I could sell better. One of the things that I would advise, as a mentor of salespeople, is to always understand and embrace who’s coming up the food chain. The person you have a great relationship with is not always going to be there. They’re going to retire, get fired, or get replaced. When I talk to an LP executive, I always ask, “Who are your best people?” Then I try to build a relationship with their direct reports, their up-and-comers, because someday, I will probably be selling to one of them.

RETAILER: For people coming up

through the business, if you are in the position to be the mentee, I think the onus is on you to seek out mentors, ask questions, and let people know that you are interested in learning. On the other side, there’s nothing greater than seeing an up-and-coming person—and you want to say “young person,” but it doesn’t have to be someone young—who really wants to learn. As a mentor, when you take that person under your wing and really develop them, then finally you watch them soar, that’s a great feeling. EDITOR: How does someone starting out in the business find a mentor to help them? ENTREPRENEUR: That’s a tough

question. When I think back to how the mentoring relationships happened for me, I didn’t necessarily seek them out. They saw the interest that I had, they saw the initiative that I had, and we just sort of gravitated towards each other. I would almost put the challenge to the industry.

Is there an initiative we could start, an LP big-brother-type program, that would help to link up the up-and-comers with people who want to be a mentor? EDITOR: From the vendor standpoint, what’s the measuring stick for an individual to get ahead in his company? Is it just about being a top salesperson? SUPPLIER: The measuring stick for sales is always going to be how successful you are at selling your solution to the customer, and there’s a whole host of variables that go into what makes a salesperson successful. It’s his personal relationship, his leadership abilities in leading his team and making them understand that the goals are aligned with the retailer, and it’s understanding his products and how they operate in the retail environment. I’ve sold things to people that didn’t work, which came back to bite me in the butt. But I’ve also sold things that truly made the LP executive look like a hero in his company. If you can continued on page 32

Use independently

Use with accessories

“

100%

of interviewed associates agreed that Turtle is effective in deterring theft.

”

Turtle with sensor cable

Download complete report at

www.intelligentlossprevention.com 30

NOVEMBER - DECEMBER 2014

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INTERVIEW continued from page 30

assign your name to a solution like that, where the LP exec looks better in his own company because he got a great return-on-investment and invested in something that made the company either more efficient or more profitable, you will get ahead as a salesperson. It’s the community property of credibility, where you’ll be more successful in your own company because, once you gain that credibility with the loss prevention executive, he trusts you with other solutions when you bring them to him. ENTREPRENEUR: Looking at the people

it set up and working. When there’s that partnership, it will bring success both to the salesperson and to the people that are running those companies. SUPPLIER: The best loss prevention executives that I had relationships with treated me as if I was one of their employees, as opposed to treating me like a vendor trying to sell them something. They held me to a standard of being creative and coming up with solutions for them, just like they would one of their regionals. They’d have internal meetings where you, as a vendor, were sitting there with six regionals, and you had the same

One of the things that I would advise, as a mentor of salespeople, is to always understand and embrace who’s coming up the food chain. The person you have a great relationship with is not always going to be there. When I talk to an LP executive, I always ask, “Who are your best people?” Then I try to build a relationship with their direct reports, their up-and-comers, because someday, I will probably be selling to one of them. I’ve been involved with, the ones that are most successful are the ones who take the initiative. They don’t just try to make a sale to the business, they try to understand the problem, try to make sure that they adapt or configure how their solutions will fit in that environment, and then work directly with the LP executives to help them create the ROI model and sell it within the business. Then they work with the LP teams to implement those solutions and make sure that they’re being put in properly. It’s one thing to sell a system. It’s another thing to actually get

their needs.” What do you say about those attitudes? SUPPLIER: There’s a real disconnect if a

vendor has armed his salesperson with a product that doesn’t meet the needs of a modern retailer. On the other hand if a salesperson is trying to gain an audience with a retail executive without doing the research to learn whether the product or service they want to present will fit the retailer’s needs, they are probably in the wrong job. RETAILER: By the same token, as we’ve

already said, if a retailer is not open to letting a solutions provider into his operation to understand his challenges and needs, how can they expect someone to walk in and offer an appropriate solution? My guess is someone who is making comments like that has either been burned by buying the wrong solution or they don’t have the insights necessary to make a good buying decision. Either way, I don’t see how someone like that will survive in today’s world. ENTREPRENEUR: The bottom line is

this is not a world where a salesperson walks into a retailer with a checklist of products and asks them to pick and choose what they want to buy. Today’s world of integrated solutions almost by definition need to be developed, sold, and implemented as a partnership between the retailer and the provider. EDITOR: What are your thoughts on the ever-increasing involvement of procurement in the LP buying process? SUPPLIER: This can be a land mine for

goal, whether it was lowering shrink or protecting some merchandise that was going to be displayed in a different mode on the sales floor. Those executives who treated me as one of their own team were much more effective.

loss prevention executives. If you get the purchasing department controlling your ability to buy integrated systems—say it’s life-saving systems like burglar alarms or fire alarms—if it’s all about price, the same way they buy pencils or toilet paper, you can have major problems.

EDITOR: I still occasionally hear a retailer say something to the effect that “vendors just want to sell me a widget that doesn’t fit my business.” Or from the vendor side, “the retailer won’t open up to let me understand

RETAILER: That’s true, but in the modern world, as an LP executive in a major corporation, you’re going to have to deal with procurement because that’s just the way of the world. The better relationship you have with your procurement team, continued on page 34

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30-10-2014 16:08:53

INTERVIEW continued from page 32

the better they understand your business, the better it’ll go for everybody. If the only thing your procurement team cares about is price, you’re in a world of hurt. Price will always be a factor, but it’s also about service, relationship, quality of product, quality of solution. Your job is to educate that procurement team, and if you’re good at what you do, hopefully, you will win them over. EDITOR: There’s often a third spoke to this buying process. What’s the role of IT today with procurement and LP in the buying process? SUPPLIER: IT is the check valve for the

success of integrated loss prevention solutions. IT is their own little world that they want to control. And you can’t blame them, given all the things that are happening with identity theft, stealing of credit card information, and whatnot. They try to make their network the Fort Knox of the information highway. The need for the LP executive to be on the network to do his job effectively will only get greater with RFID, video analytics, and big data becoming the preeminent tools for LP to have insight into shrink. I think you’re going to see more and more that LP executives are going to need their own loss prevention IT person who talks the same language to ensure that all of the network-critical LP systems run smoothly. ENTREPRENEUR: I think that it’s critical

to have a strong IT partner, just as it’s critical to have a strong procurement partner. Because most of the things that are being installed and purchased today are connected to the internal networks, you have to have a strong IT partner who understands what it is you’re trying to do and can support you in getting the solutions implemented. I also see a trend of pushing more of these solutions outside of the business, whether they’re cloud-based or otherwise externally hosted type solutions. In many cases IT is glad to have that off their plate. EDITOR: There’s always been talk about investigations and handling big cases. For young people starting off, a lot of time can be spent there. Is being

a great investigator a critical element of getting ahead in this business? RETAILER: I don’t think so. I think it probably played a bigger piece in past years. I think it’s not a bad thing to have in your satchel, but I don’t think you have to be a great investigator to be a successful retail exec.

in the future, and that holds true for investigations. Today you have online purchases, in-store pick-up, and, in the case of an Apple store, the customer pays for merchandise with a tablet as he walks out the door. LP executives are going to be challenged with investigating where theft is going to take place

I think that it’s critical to have a strong IT partner, just as it’s critical to have a strong procurement partner. Because most of the things that are being installed and purchased today are connected to the internal networks, you have to have a strong IT partner who understands what it is you’re trying to do and can support you in getting the solutions implemented. ENTREPRENEUR: There was a time

when having a big-dollar case gave you more notoriety or maybe got you a little more noticed, but it’s no longer just about finding the big ORC case. It’s also about understanding the business, which is part of being a good investigator. My definition of investigator would not just include the ability to solve a case, but also the ability to investigate how the business works. You have to understand how positions work and how merchandise gets from point A to point B. There are elements of being an investigator that are included in that, that might solve a $200 shrink problem or it might solve a $20 million shrink problem, but those skill sets need to be honed, and they are what will make you a success in the field of loss prevention. SUPPLIER: The customer is going to

drive how the retail world operates NOVEMBER - DECEMBER 2014

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in the future, and it’s going to be vastly different than it is today. EDITOR: We’ve talked about the value and rapid evolution of technology as well as the importance of people. Where do you put your money first—technology or people? RETAILER: I think you have to go with

people. Obviously, in this day and age you have to have both, but if you don’t have motivated, sharp people, what good is technology going to do you? If you don’t do anything else, you lead with people, because people are the ones that make the technology work. If you’ve developed a motivated staff that knows the business, they can quickly adapt and learn the technology. ENTREPRENEUR: It’s a tough question. It’s almost a chicken-and-egg thing, because you can have all the great

LossPreventionAd.qxp_Layout 1 5/7/14 4:36 PM Page 1

INTERVIEW technology, but if you don’t have the right people running it, then it doesn’t do you any good. And, quite frankly, you can still create a good loss prevention environment without the technology if you needed to. So it starts with people, working with people, in order to prevent the loss. SUPPLIER: If the edict from the C-suite is that you are going to invest in technology to cut people, loss prevention executives are going to have to think about the skill sets of the people they’re going to invest in. Executives are going to be challenged with investing more money in entry-level LP people with different skill sets. EDITOR: I feel a lot of passion in all three of your voices. Are there ways that you, or others in this industry, can give back to loss prevention?

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SUPPLIER: I believe the best loss prevention executives have their

eyes open and are attuned to people who appreciate the loss prevention industry as a profession and support the profession objectively without personal gain. When a vendor gets involved in an evolution that helps the loss prevention profession without personal gain, people pay attention. People get that. What that does is give you credibility and access down the road to those loss prevention executives.

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ENTREPRENEUR: I think it is definitely important to give

back. For most of us that means getting involved, whether with mentoring or participating in industry initiatives—things like the LPRC, LP Foundation, NRF, RILA, or FMI where you are involved in committees, councils, or research. It’s important to make yourself available as a resource, as a testing ground, as a guinea pig, or as a mentor. I think it’s very important to the success of the industry, to the success of the individuals who are coming behind you, and to your own personal success. RETAILER: Going off that, of course giving back produces all

of these great things for the industry, but I think it’s important to remember that it’s a two-way street, because in any of the ways you get involved, you learn, too, right? And I think we all know there are certain companies out there in the retail business that are very, very insular. They don’t reach out much, they don’t get involved with the industry much, and I would venture to say that I think those companies are not as broad and as informed and as well-off compared to those who do get out and do learn. If you’re on committees, if you’re involved with NRF, you learn all sorts of stuff that you didn’t know, you learn about how other people do things. SUPPLIER: And as a solution provider, you are limiting your

success by not taking advantage of the opportunities to be involved with all these different organizations and industry initiatives, if nothing more than the exposure that they give you for your company. But the real value comes from that opportunity to work with the retailers and get inside and understand their issues so that you’re bringing the right solutions, and hopefully, the best solutions to the market.

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EVIDENCE-BASED by Read Hayes, Ph.D., CPP

ImpactX Conference: LP on the Move

ou just never know. Toys‘R’Us Vice President of Asset Protection Chris Gillen and his Impact planning team spent four months carefully planning conference content that would inform and inspire the traditional 100 participating executives. Meanwhile, LPRC staffers Jessi Dudley, Kyle Grottini, Mike Giblin, and Carrie Hayes diligently worked the intricate conference logistics. As it turns out, the LPRC actually had to halt new conference registration at 190 to prevent overloading planned food, work space, and other critical issues. Key LP decision-makers from almost forty retail chains interacted with expert panels of top retail LP professionals, LP solutions providers, and even active criminal offenders from across the experience and methods spectrum. Solution partner sponsors were creatively integrated right into the conference flow—and even the main work space. The conference planning team then rolled out even more unique and informative interactive content for participants. Retail experts like Lowe’s John Doggette, Toys‘R’Us Steve Mick, and Walmart’s Mike Lamb provided insight into how they used the LPRC-touted SARA problem-solving method to systematically discover, describe, and precisely address a significant crime or loss problem. LPRC research scientists also discussed some of the twenty-five 2014 research project findings and implications with the attendees. The conference content flow culminated in the eleven LPRC working groups breaking out for detailed discussions and planning for 2015 actions and deliverables (see below). The Impact conference has never been designed by retailers to compete with any other conference, but rather to do just what this conference appeared to do—help move the mission-critical LP discipline to a much more evidence-based process as well as provide a forum to discuss real-world LP research. All in order to better support the retail selling mission. Gillen and the conference planning team have already started planning an even more impactful 2015 version. And I again would like to personally invite you to consider participating in 2015 Impact conference. But as we learned, plan and engage early before we fill up. Please email us at operations@lpresearch.org for more conference information.

Working Groups and Action Teams

The LPRC makes things happen via its working groups. Retailers form and lead these teams facilitated by LPRC staff. The idea is for group members to set their mission statement, objectives, and specific needs, and then researchers

Dr. Hayes is director of the Loss Prevention Research Council and coordinator of the Loss Prevention Research Team at the University of Florida. He can be reached at 321-303-6193 or via email at rhayes@lpresearch.org. © 2014 Loss Prevention Research Council

go find out and report what they find for the groups. Benchmarking, sharing, and brainstorming are encouraged, but should always lead to research and development and extensive testing. Hence, evidence-based practice is used. Following is a brief synopsis of the LPRC working group’s and action team’s 2015 goals. Data Analytics Working Group ■ Data analytics workbook—Limit to fewer variables, presenting data in an even more understandable and usable way. ■ Predictive analytics—Expanding the scope from shrink and stock loss to other common variables such as back-door loss. ■ Statistical tools—Understanding and sharing statistical tools and their best usage. Future LP Working Group ■ Evolution of LP professionals—Create pseudo job descriptions; understand what future skill sets will be needed; what training and resources are needed; what is available and what isn’t? ■ Omni-channel fulfillment—Buy online and ship to store; what is the effect on shrink when making a store a ship-to center? ORC Working Group ■ Offender interview—Finish “top 5 questions to ask suspected booster” project. ■ NRF ORC survey—Help the National Retail Federation with their ORC survey, maintain continuity of language and phrasing. ■ Law Enforcement—Work with local law enforcement to help identify possible ORC situations. ■ Fence interaction—study their economy, their motivation, their relationship with boosters. ■ Credit card and gift card fraud—How much is it hurting the retail community? ■ Predictive analytics—Find best strategies to prevent crew-type commercial burglaries; why do offenders choose a place over and over? Product Protection Working Group ■ Enhance protection—Focus on increasing sales and guest experience. ■ Benefit denial—Continue multi-retailer benefit denial proof-of-concept project. ■ Communications—Continue webinar series. ■ Develop symbol—Work on developing a benefit denial packaging symbol that is universally recognized and owned by LPRC.

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Increase participation—Recruit more active retailer members. ■ Safety—Approach safety and workers’ comp from a data standpoint. ■ Training and awareness—Develop a questionnaire tool to measure effectiveness of training and awareness or engagement programs. ■ Merchandise visibility—Find the best application that ties visibility to moving assets, such as GPS or tracking software. ■ Benchmark accuracy—Establish a standard set of metrics for accuracy to store and accuracy to customers. Video Solutions Working Group ■ Retailer needs—Establish an education platform to close the information gap between solutions and needs; use the established indoor and outdoor crime scenario list to drive solution R&D; index solution providers based on capabilities; create a series of webinars to close that gap. ■ Measurements—What metrics and measurements are needed to define success? ■

The LPRC makes things happen via its working groups. Retailers form and lead these teams facilitated by LPRC staff. The idea is group members set their mission statement, objectives, and specific needs, and then researchers go find out and report what they find for the groups. Benchmarking, sharing, and brainstorming are encouraged, but always leading to research and development and extensive testing. Filters—What other filters are necessary, including legal review? ■ Membership—Further increase retail chain participation. Big-Box Action Team ■ Communications—Share best practices with associate engagement training to date. ■ On-boarding—Focus on how to indoctrinate associates coming from a different company or department. Department/Mass Merchandise Action Team ■ Fitting room—Roll out project and get feedback on pilot. ■ Process—Establish a process on how to roll out initiatives and make sure all appropriate business partners are brought in at the correct time. ■ Offender feedback—What deters them in fitting rooms, bag stuffing, and other theft methods? ■ Data collection—Apprehension questionnaires as a way to collect data. ■

Food and Drug Action Team ■ Databases—Get a sample from shoplifter apprehension databases to check shoplifting by SKU, look for trends of what people are stealing and why. ■ Offender interviews—Additional ORC offender feedback on protection devices. ■ Scan-Cam—Continue pilot and rollout. ■ Non-theft shrink issues. Specialty Retail Action Team (previously Small Box) ■ Objectives—Refocus mission to suit research needs of specialty stores; define group parameters; create subgroups based on interests. ■ Membership—Increase participation and interest with specialty retailers. Violent Crime Task Force ■ Crime event data—Focus on robbery, parking-lot crime, shoplifting resistance, active attacker. ■ Parking-lot security—Begin Gainesville stores R&D project. ■ In-store robberies—Focus on prevention strategies.

Parking Lot Crime Research Update 2

Shopper and employee safety and comfort is basic retailing 101. The LPRC is working with leading retailers and solution providers to address the very real fear of crime issues through research. To date we’ve conducted parking-lot crime research literature reviews, surveys, and are now planning and working on a series of R&D initiatives. In the September-October issue we provided a first look at this topic. Following is part two of our project description. Phase 1—Promote Deterrence ■ Define private-property boundaries—Landscaping, border barriers such as fencing, and notification messaging such as stand up and posted signage. ■ Warn of crime attempt detection/response risk—CCTV cameras and notification messaging. ■ Enhance detection/response risk credibility—CCTV enhancements, including type, placement, size, height, lighting; marked patrols, including foot, bike, vehicle, appearance, and process; lighting placement and levels; surveillance sight lines from store and in lot; vehicle travel routing such as short-term use of orange cones to limit lot entry/exit points and channel vehicles past more remote or other problematic areas to increase natural surveillance. Phase 2—Promote Detection ■ CCTV placement to maximize sight lines to risk areas. ■ Behavioral and other change analytics. ■ Construct CCTV, video data analytics, manager notification links to improve event or likely event detection and response. ■ Construct enhanced manager and law enforcement notification links to improve event or likely event detection and response. Phase 3—Promote Documentation/Usage ■ CCTV placement to maximize sight lines to risk areas. ■ Day/night CCTV lens and pixel enhancements to improve image details. ■ Off-site storage, remote access, and quick sharing. ■ CCTV survivability from storms, gunshots, and power failure. ■ Behavioral and other change analytics.

LP MAGAZINE | NOVEMBER - DECEMBER 2014

PARTNERING WITH RETAILERS

Staying Safe with Online Vehicle Sales By Kevin Black, Manager of Global Technical Investigations, eBay

Bay is one of the most trusted ecommerce marketplaces, with over 149 million active buyers and over 700 million listings. The trust and global recognition of eBay also makes it attractive for cyber-criminals to impersonate and exploit the eBay brand. Scammers impersonate eBay and social engineer victims into sending their hard-earned money—all while victims believe they have been communicating with eBay. One popular scam involves fraudulent vehicle sales with scammers impersonating eBay ‘s vehicle purchase protection (VPP) or buyer protection programs. eBay ‘s VPP covers up to $50,000 when the vehicle transaction starts and ends on eBay.

The Scam

Imagine your daughter is buying her first car. She scours online sites looking for an affordable used car. She finds a great deal and contacts the seller via the classifieds site. After exchanging a few emails asking for more details and pictures, she is ready to commit to the purchase. However, the seller may reply that they cannot meet in person because they are working overseas. The seller insists, “The transaction will be made through eBay’s protection program for our own safety.” The seller reminds the buyer if they are unhappy with the vehicle, the vehicle can be returned, expenses paid, for a full refund from eBay. What a great deal and all under the protection of eBay. After the seller “starts the transaction with eBay,” your daughter now receives a series of emails from “eBay.” One email may welcome her to the eBay VPP program, highlight the attributes of the program, tell her she is protected during the transaction, and indicate the seller is in good standing with eBay. Another email contains the invoice for the transaction and outlines the procedure for sending money to the “eBay agent” who will hold the money until the buyer receives the vehicle and confirms the vehicle has successfully passed inspection. The invoice will commonly ask for payment via MoneyPak, Western Union, MoneyGram, Reloadit, or bank transfer. At this point a few buyers smell a scam as they are familiar with eBay and know there is no such entity as an “eBay agent” who holds money in escrow. Some buyers are (falsely) reassured after they contact the “eBay” customer-support live chat or toll-free numbers listed in the bogus invoice.

Unfortunately, there are buyers who continue with the transaction and send money, losing thousands of dollars. They eagerly await the arrival of their vehicle, but it never arrives. In some cases the seller continues the scam, trying to extract more payments from the victim. In one scenario the buyer is told there is a problem with the shipping company, and she needs to send shipping fees that will be refunded upon delivery. The cyber-crooks are convincing and ingenious at stealing your money.

If You Have Been Scammed

In the unfortunate event that you’ve been scammed, please do the following to help law enforcement and private industry investigate the scammers: ■ File a complaint at ic3.gov. ■ File a complaint with MoneyPak, Western Union, banks, or other payment processors. ■ Forward all emails to car@ebay.com with “MONEY SENT” and the dollar loss in the subject line. You might be thinking, “Oh, I’d never fall for this scam.” Never say never. Victims are from all walks of life, from students to lawyers. Buyers are caught up in the emotion of the purchase, wanting to finalize this steal of a deal as quickly as possible. The cyber-scammers play upon human emotions and exploit the trust of the eBay brand to social engineer victims into their trap.

Be Aware and Vigilant

If friends or family are purchasing a vehicle outside of eBay, and they confidently state that they are protected by eBay, remind them of the following points: ■ If a seller from a non-eBay site says the transaction is handled or protected by eBay, the seller is lying. eBay does not handle transactions that start off eBay. ■ Be suspicious of sellers who cannot meet in person or who do not allow physical inspection of the vehicle prior to sale. ■ There are no entities such as “eBay agent” or “eBay Financial Department” that accept payment via MoneyPak, Western Union, Money Gram, Reloadit, or bank transfer. ■ Official eBay emails, including invoices and transaction notices, will appear in the buyer’s My Messages section of My eBay. ■ Remember the adage, “If it’s too good to be true, it probably is.” If there are any doubts, walk away. It is better to lose a “great deal” than to lose a few thousand dollars.

NOVEMBER - DECEMBER 2014

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FEATURE

NIOSH THE SCIENCE OF SAFETY By Dr. Vern Putz Anderson, Ph.D., CPE

NIOSH: THE SCIENCE OF SAFETY

very retail operation is a complicated web of activity. There is always something happening as minds, machines, individuals, and technologies are all expected to work together as the controlled chaos of the retail enterprise marches forward. To keep it all running smoothly, there are fundamental practices that we all must get behind to promote a productive business and a quality workplace. Clearly, a safe working environment is one of the most important. Every work environment is different, and the retail setting is no exception. Diverse environments keep the stores and the entire organization in a state of constant transition. Products change as seasons and styles change, requiring continuous adjustments to both the store and the stock. Weather comes into play, as does the type of merchandise that is sold, the format of the store, and countless other factors that keep the business moving forward. We must consider all of the different scenarios that can possibly influence our decisions, and then we must add a key variable that sets the retail environment apart from many other workplace settings—the retail customer. Safety in the workplace is everyone’s concern and a shared responsibility that holds all of us collectively accountable. It is much more than an objective; it is an attitude and a responsibility. It must be a part of our mindset, and instilled in our habits as we approach everyday tasks. All of us understand how busy our work days can become, and it’s easy to grow distracted by both the demands of the job and the routine of day-to-day responsibilities. But we can never overlook the need to work smart, and take the time and care to do the job safely. This also means that we must learn to take advantage of all of the resources at our disposal, and seek out opportunities to become better prepared and better informed. Safety isn’t something that happens by accident. There is a science to keeping the workplace safe.

Safety in the workplace is everyone’s concern and a shared responsibility hazard evaluations, and translating that holds all of us collectively the knowledge gained into accountable. It is much more than informational an objective; it is an attitude and a products and services. This responsibility. It must be a part would include of our mindset, and instilled numbered publications, journal articles, web-based in our habits as we materials, training videos, and recommendations for improving approach everyday safety and health in the workplace. tasks. All of these resources are readily

NIOSH vs. OSHA

NIOSH (National Institute for Occupational Safety and Health) and OSHA (Occupational Safety and Health Administration) were both established as part of the Occupational Safety Act of 1970 signed into law by President Nixon. But NIOSH differs from OSHA in a number of ways. While OSHA is an enforcement and regulatory agency that is part of the US Department of Labor, NIOSH is a research and information institute within the Department of Health and Human Services. NIOSH is a division of the Centers for Disease Control and Prevention (CDC). It is the federal agency responsible for conducting research and making recommendations for the prevention of work-related injury and illness. We provide national and world leadership to prevent work-related illness, injury, disability, and death by gathering information, conducting scientific research, responding to requests for workplace health

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available to the public. OSHA’s mission is also to assure safe and healthful working conditions for working men and women, but by setting and enforcing federal regulations and standards, and by providing education and assistance. The mission of NIOSH is to generate new knowledge in the field of occupational safety and health, and to transfer that knowledge into practice to protect workers. We focus on the research. However, one aspect that we have in common is that all of the outreach, information, and resources are free to the public.

National Occupational Research Agenda (NORA)

In 1996 NIOSH launched the National Occupational Research Agenda (NORA), an innovative public-private partnership that focuses on developing partnerships with business, labor, trade associations, universities, and other agencies to stimulate innovative research and improved workplace practices. Collectively, these parties all work together to identify issues related to workplace safety and health that require attention, and develop strategies to improve conditions and effect change. NORA has become a research framework for NIOSH and the nation.

NIOSH: THE SCIENCE OF SAFETY

Diverse parties collaborate to identify the most critical issues in workplace safety and health. Those partners work together to develop goals and objectives for addressing these needs. NORA resources are then committed to those issues most relevant to the problems of today’s workplaces, conducted using the highest quality science, and having a measurable impact on improving the lives of workers. Every workplace has unique issues and opportunities. As a result, NORA uses a sector-based approach to define and meet high-priority needs at a more granular level. The retail industry is categorized under the Wholesale and Retail Trade (WRT) sector. The goals of the Wholesale and Retail Trade sector are determined based on information obtained from the Survey of Occupational Injuries and Illnesses, provided by the Bureau of Labor Statistics. According to the most recent survey, musculoskeletal disorders (MSD) continue to be the most recurrent class of injuries in the private-sector workforce, with the majority of the MSD lost-time injuries being labeled as strains and sprains. As a result, many initiatives focus on the reduction of these types of injuries. However, additional high-frequency, high-risk areas are

addressed as well. These would include, but are not limited to: ■ The reduction of acute traumatic injuries by minimizing the hazards that cause falls, slips, and trips. ■ Mitigating acute injuries that result from contact with hard objects. ■ The reduction of workplace violence through improved workplace design and improved training. ■ A reduction in motor-vehicle-related injuries and fatalities. ■ Improved outreach to small businesses by providing access to current safety and health information. ■ Expanding the availability and use of effective interventions to reduce injuries and illnesses.

Research Priorities

Research priorities are typically determined by reviewing three criteria. First, we consider the number of, or an elevated incidence rate for injuries and illnesses recorded for a particular hazard. This data is gathered from the Bureau of Labor Statistics, state-based workers’ compensation programs and other sources, and then compared with the number of workers in a given business. The seriousness of the hazard or issue is also an important consideration, as our goal is to eliminate or control those

LP MAGAZINE | NOVEMBER - DECEMBER 2014

hazards that are associated with the most serious health outcomes. Finally, the probability that new research or strategies will be successful in protecting employees from one or more hazards causing the injuries or illnesses is weighed so that we effectively utilize our resources to have the greatest impact on reducing these issues. Typical projects would include: ■ Surveillance projects that involve collecting health and injury/illness data about the workforce. ■ Etiological/causation projects that determine the primary hazards that employees are exposed to in the workplace that are responsible for adverse health outcomes. ■ Prevention projects that seek to develop new or improved tools or strategies for controlling or eliminating the hazards. ■ I nformational projects that include the development of informational products or media that report on these findings.

Concerns Facing Retailers Today

So what are some of the primary health-and-safety concerns that retailers are dealing with on a regular and consistent basis? Below are some of the

NIOSH: THE SCIENCE OF SAFETY more common challenges that are faced in the retail setting today. The Cost and Impact of Workplace Injuries. These conversations must include an understanding of the direct and indirect costs associated with preventable injuries. Hence, retailers must begin to think about linking sales to the cost of an injury just as they apply the principle to other areas of the business. For example, what is the cost in terms of additional sales dollars necessary to offset the cost of a single injury? The Nature of Injuries and Lack of Solutions. The industry’s top retailers identify overexertion and related injuries such as sprains, strains, MSDs, ergonomic issues, and like incidents as their primary safety concerns. Yet most further reveal that they do not have any new or effective solutions or preventative strategies to address these concerns. For example, while improper lifting of heavy objects can certainly result in potential injuries, improper reaching for objects, such as when reaching for products deep in a stockroom shelving space, can also result in injuries and needs to be addressed. What steps are being taken to manage these issues? The Diversity of Retail Businesses. The many differences that exist across the various retail platforms—the products, the layout of the stores, material handling and the tools used to help make the store function, product display, and other factors—may make it more difficult to find and apply common solutions and prevention strategies. These differences will influence the types of safety concerns that may be present, and how those concerns are addressed by the company and the workforce. Omni-Channel Retailing.: The demands that accompany more “just-in-time” delivery require that the supply chain be as efficient as possible. This puts additional pressure on the material-handling system. Employees may have to step into jobs that they are

unaccustomed to, some of which are considered heavy work. They may also need to fill large orders in a short time period. Here is where the proper training and material-handling equipment must be available to ensure that the employees can safely and effectively perform multiple jobs along the supply chain. Workers’ Compensation Costs and Potential Increase in Health Insurance Coverage. As a result of these factors and other risks and concerns, this can directly influence the cost of doing business and needs to be considered as a potential outcome.

Management needs to develop solutions and preventive steps as a strategy for reducing or eliminating lost-work time injuries and additional costs.

Overcoming the Issues

The primary means of overcoming health-and-safety concerns is to invest in solutions. Certainly, this would include programs designed to prevent injuries and tools intended to reduce the risk of injury and increase productivity. But this would also include programs that help employees manage their general health and fitness. Programs that encourage employees to

The exercise properly, eat better, and make industry’s top healthier choices can directly result retailers identify in safer and more productive work environments. overexertion and related The manufacturers injuries such as sprains, strains, of material-handling equipment are MSDs, ergonomic issues, and like working with incidents as their primary safety concerns. many WRT businesses to Yet most further reveal that they do design specialized material-handling not have any new or effective equipment that meets solutions or preventative the needs of organizations with high rates of overexertion strategies to address injuries. Research shows that these concerns. those businesses that have invested

in material-handling equipment are experiencing increases in productivity, fewer complaints of fatigue and overexertion injuries, and increases in

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NIOSH: THE SCIENCE OF SAFETY

continued from page 42

the longevity of the most productive and experienced employees. As an additional benefit, with the appropriate material-handling equipment, those workers who could not previously handle the physical demands of certain tasks are now able to perform some of the more labor-intensive jobs that once were not possible for them to manage. The primary source of information for businesses on any topic relevant to the Wholesale and Retail Trade sector, as well as related technical assistance is the NIOSH website. Some of the available solutions would include: ■ Research projects—The projects address various health-and-safety issues relevant to the retail industry. A number of the projects provide ideas for organizing and disseminating information and for the collection of injury and exposure data. Projects deal with topics known to be a concern of workers and employers in the retail sector. ■ NIOSH-funded research grants—NIOSH sponsors research and training efforts that support health-and-safety initiatives

through its extramural programs, which complement the agency’s own efforts. These project grants could easily be tailored to include populations of workers and worksites in the retail industry and provide data and methods that would be of value in developing future requests for funding through the grant program. ■ Publications—NIOSH publications, white papers, pamphlets, and topic pages provide access to a broad range of web-based information on occupational safety and health. Typically, these publications contain introductory material and links to specific information and other resources related to the subject matter. To access the largest database of articles dealing with occupational safety and health, go to www.2a.cdc.gov/nioshtic-2/. ■ Research to Practice—Historically, NIOSH has been a leader in applying research into workplace solutions that reduce injury and illness. Research to Practice (r2p) is a NIOSH initiative focused on the transfer and translation of research findings, technologies, NOVEMBER - DECEMBER 2014

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and information into highly effective prevention practices and products that are adopted in the workplace. The goal of r2p is to increase workplace use of effective NIOSH and NIOSH-funded research findings. NIOSH continues to focus research on ways to develop effective products, translate research findings into practice, target dissemination efforts, and evaluate and demonstrate the effectiveness of these efforts in improving worker safety and health. ■ Health hazard evaluations— Employees, employee representatives, or employers can ask NIOSH to help learn whether health hazards are present at their place of work. NIOSH may provide assistance and information by phone and in writing, or may visit the workplace to assess exposure and employee health. Based on the findings, recommendations will be made on ways to reduce hazards and prevent work-related illness. The evaluation is done at no cost to the company. ■ The WRT coordinator—NIOSH offers a designated coordinator who will continued on page 46

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NIOSH: THE SCIENCE OF SAFETY trend in many retail organizations to consolidate certain responsibilities in order to improve efficiencies and maintain consistency. While safety is everyone’s concern, often the management of company safety programs can fall under the loss prevention umbrella. Understanding and making the best use of the resources that are available will only improve the quality of the workplace. For more information, please visit the NIOSH website at cdc.gov/niosh.

continued from page 44

work with organizations to gather information and/or services that can help make the workplace a safe environment. The coordinator can provide white papers, studies, and reports on nearly any safety topic that you may be seeking information on. Free copies of those reports will be made available and, if requested, a brief synopsis of the reports can be provided as well.

According to the most recent survey, musculoskeletal disorders (MSD) continue to be the most recurrent class of injuries in the private-sector workforce, with the majority of the MSD lost-time injuries being labeled as strains and sprains. As a result, many initiatives Getting More Involved NIOSH invites participation focus on the reduction from retailers that wish to participate of these types in various safety initiatives, as well as those that have an interest in serving as of injuries. part of the sector council. The Wholesale and Retail Trade Sector Council consists of safety and loss control experts from a number of retail businesses, insurance and loss control representatives, researchers from universities who conduct studies on issues relevant to the WRT sector, and engineers from manufacturing companies who produce various types of powered-assisted, material-handling equipment. Retailers can become more involved by contacting the WRT coordinator, or by visiting the NIOSH website. This would include potential participation in the WRT council, getting more involved in test studies, test stores, and similar projects, or simply to discuss an area of concern where additional information and/or study might prove beneficial to the retail industry.

Putting It All Together

To summarize, NIOSH is a federal organization that was specifically founded to help businesses mitigate health-and-safety issues. We are not, nor are we directly affiliated with a regulatory organization, but rather serve as a research and development agency. There is a sector of the agency that is expressly designed to deal with health-and-safety concerns commonly dealt with in the retail industry, and we are consistently seeking to develop

new or improved tools and strategies for controlling or eliminating these hazards. NIOSH conducts independent research projects, but is also willing and capable of working with retail organizations individually or collectively to study and resolve safety concerns. We will create white papers and other informational products that can help companies to inform and train their employees. And, these resources are readily available free of charge for any retail business in the U.S. that is interested in improving safety in the workplace. As the role of loss prevention has continued to evolve, there has been a VERN PUTZ ANDERSON, Ph.D., CPE is currently a public health advisor at NIOSH. Trained in experimental psychology at the University of Wisconsin, his current interest is in the prevention of injuries and illnesses of employees in the Wholesale and Retail Trade sector. Prior to this, he conducted laboratory and worksite studies examining the impact of risk factors on performance and health outcomes. Dr. Anderson led a team of researchers in the development of the NIOSH Revised Lifting Equation. He has published in the areas of behavioral toxicology and the prevention of musculoskeletal disorders. Dr. Anderson can be reached at the National Institute for Occupational Safety and Health, Centers for Disease Control and Prevention at vanderson@cdc.gov.

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DIGITAL DIALOGUE

Slowing Down the Game O

ur recent article “The Evolution of the LP Professional” seemed to stoke embers to flames for both LP practitioners and solution providers as we peered into the future of an industry that is rapidly transforming. There were many discussions on social media, many comments and questions during the annual LP Magazine editorial board meeting, and many suggestions for additional topics on the subject. We also received questions and requests from LP departments holding team meetings and group discussions across the country as our teams explore the possibilities—and the consequences—of a world in motion. Clearly it is a subject that holds great interest.

By Jacque Brittain, LPC Brittain is editorial director, digital, for LP Magazine. Formerly a director of learning design and certification, Brittain managed the development of the LPC and LPQ certification programs in collaboration with the Loss Prevention Foundation. Prior to that he was vice president of operations for the industry’s largest executive search and consulting firm. In his thirty-plus years in the LP industry, he has helped build and enhance many learning initiatives and provided career counseling for thousands of industry professionals. Brittain can be reached at jacb@lpportal.com or by phone at 704-246-3143.

The NFL for LPMs

Let’s look at a simple analogy to find the answers. When college football players first enter the National Football League, they are moving from an environment where they’ve always been the best player on the field to one that is dominated by

We’ve seen some of the industry’s newest, as well as some of our most seasoned leaders, involved in all types of meetings, programs, and projects intended to improve our collective resources and move the industry forward. But what they all had in common was the desire and flexibility to continue learning. They’ve learned to slow down the game by staying current and informed. When you see a 30-year industry leader discussing information technology and Omni-channel retailing, you quickly understand why they’ve been a leader for 30 years.

Hitting Home

But if we are truly honest with ourselves, we also recognize that what’s fueling the fire is also striking much closer to home. Retail is a business that’s had its peaks and valleys, and one that’s been in a constant state of reinvention. As the needs and expectations of retail and the retail customer redefine our roles and responsibilities, it opens the doors to many exciting opportunities, but also opens our eyes to many unknowns. Perhaps the most obvious would be, “Where do I fit in?” When we ask, “What we can expect LP to look like in the future,” we’re also asking, “What are the possibilities for my own future?” We’re considering how our role might change, but we’re also contemplating how that might impact our lives and our livelihood. We see the train coming, and we know that change in some form is inevitable. What we all want to know is that when the train pulls away from our station, we’re still on board. We may be sitting in a different seat than we expected, but we want to make sure that we’re still along for the ride. Change has always been an important part of retail. However, some of these changes seem to be coming very quickly. In many ways we can see that retail is reaching a critical mass, and there will soon be an explosion of changes. Some have already started, some are right around the corner, and others may be beyond our current field of vision. But it’s clear that it’s coming. We know that we have to respond. We realize that we can’t just close our eyes, cross our fingers, hold our breath, and hope for the best. We have to evolve to stay relevant. But sometimes it’s difficult to find the best path. It’s not good enough just to respond—we have to respond correctly. And when facing that inevitability, what do we do?

elite athletes. Skills and abilities are put to the test in the face of change; and scouts, analysts, and later coaches, must not only evaluate the player’s raw talents, but also their capability to adjust to the pace of the game. Everyone is strong. Everyone is fast. Everyone is talented. In light of what is typically the greatest challenge that they will

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face as professionals, what you will most often hear is that in order to excel, “the game has to slow down for them.” In other words they must adjust the way that they approach the game to match the pace of the new system. The playing field may be the same, but the stakes are different, and so are the players. If they can’t adjust, they can’t succeed. In simple terms this is what we have to do as well—we have to slow down the game. Regardless of the talent that we bring to the playing field, we have to make the necessary adjustments to match the pace of a new system. Talent isn’t enough. The stakes are different, and so are the players. If we don’t adjust, we’ll just be another draft pick that didn’t make the cut. That’s just life in the big leagues. So how do we slow the pace? Now more than ever, it’s critical that we invest in ourselves. We have to learn the new technology. We have to keep up with the latest news and information. We have to empower ourselves through training and education. We have to open our minds and embrace the opportunities rather than minimizing their importance. By taking the time and making the effort to learn and improve, we can effectively slow down the game.

Make the Right Investments

The right investment is any venture that helps you learn and develop as a professional. We shouldn’t limit ourselves when learning. Expanding the possibilities also expands our potential reach. We should look for opportunities with an open mind and a positive attitude. However, we can start by looking at some fundamental prospects that are right in front of us. When we say that loss prevention can no longer operate in a silo, we are also saying that each of us as individuals must look to expand our limits. Are you looking for ways to learn more about the other areas within your own company such as human resources, information technology, and operations? How much do you know about your own supply-chain network? What’s your company protocol for handling a crisis situation? What are the top selling items in your stores over the past six months? Are you spending time or having conversations with your counterparts in other stores or other markets? Taking a deeper look from a more critical perspective, how does your approach to your job mesh with the overall culture of the company? Growth must take place in all directions. LP departments differ based upon the culture of the company and the approach of leadership. Are you looking at your growth and development beyond the boundaries of a single organization? This isn’t to imply a need to change companies, but rather to expand the way we see both the business and the profession to improve our performance. Limiting your field of vision also limits your options and potential. Are you networking with other LP professionals? Are you a member of LinkedIn, our “Powered by LP Magazine” group, or other groups? Have you considered investing in one of the industry certifications? I will personally challenge any successful industry professional—up to and including the directors and vice presidents that have taken the courses—to tell us that they didn’t learn from that investment. This truly represents the collaborative ideals and standards of an industry, and will soon get even better. Have you at least researched it to find out

Relevance isn’t something you find in a title or store in a trophy case. It’s something we have to earn on a continuous basis. If you really think that your current level of talent and experience is enough to keep you in the game—regardless of what that level may be—keep in mind that’s exactly what every draft bust in the history of the NFL thought as well. what it’s all about? Have you looked at other venues for higher learning? Aren’t you worth it? A subscription to LP Magazine is free to any loss prevention practitioner in the U.S. and Canada. The digital version of the magazine and other resources available through lpportal.com are free. The Monday Five and Thursday LP Insider newsletters are free. The LP Magazine app for both iPhone and Android users is free. Are we seeing a trend here? Every one of these venues offered by LP Magazine provides a wealth of resources to keep you current, informed, and educated. They are discussed in every issue of the magazine, and available to every person reading this publication. Is there a legitimate reason for not getting involved?

Staying in the Game

Digital Dialogue is more than just a place to discuss current news as it appears in our various digital outlets. It should be a means to expand the way we look at what we do. The Internet has opened up doors to knowledge and information in ways that we could have never imagined just a few short years ago, and it just makes good sense to take advantage and stay informed. We don’t always have to take ourselves or the world so seriously, but we still have a responsibility to play it smart. Just looking at the industry events that have taken place over the past several months, we’ve seen some of the industry’s newest, as well as some of our most seasoned leaders, involved in all types of meetings, programs, and projects intended to improve our collective resources and move the industry forward. But what they all had in common was the desire and flexibility to continue learning. They’ve learned to slow down the game by staying current and informed. When you see a 30-year industry leader discussing information technology and Omni-channel retailing, you quickly understand why they’ve been a leader for 30 years. Relevance isn’t something you find in a title or store in a trophy case. It’s something we have to earn on a continuous basis. If you really think that your current level of talent and experience is enough to keep you in the game—regardless of what that level may be—keep in mind that’s exactly what every draft bust in the history of the NFL thought as well.

LP MAGAZINE | NOVEMBER - DECEMBER 2014

ASK THE EXPERT LP Magazine interview with Gerald Becker Gerald Becker is vice president of physical security at USS. He is known industry-wide for his expertise in deploying digital video management solutions on a large scale in both private and public sector. Becker holds multiple patents for physical security innovations that he has developed. He holds an MBA in information systems from the University of Redlands and a BS degree in technical management from DeVry University.

No Training, No ROI EDITOR’S NOTE: Loss prevention leaders are looking for solutions that are both affordable and capable of meeting the escalating demands of the business, but must also factor the potential investments of training and development. LP Magazine recently met with Gerald Becker, vice president for physical security at USS, a leading integrator of IP video and access control systems. As a widely recognized expert on security technologies, we sat down with him to chat about some of the additional challenges that often accompany implementing new video and access control systems. You’ve worked with the LP departments for many different companies to upgrade their old analog systems to modern IP-based systems, like video and access control. What is the most common challenge you’ve seen them face? Training is always at the top of that list. You can deploy the most advanced system in the world with all the bells and whistles, but if your employees don’t know how to use it to its fullest extent, that system is useless to you. As a result your ROI can go right out the window.

money into something, you want to see the ROI as quickly as you can. But there is no ROI if your employees are only capable of pushing the handful of buttons they already know—Record, Play, Rewind, Fast Forward. Can’t a company that’s buying the solution do the training on its own? Sure, but who has the time for that? Besides, the people that know your system the best are those that are selling it to you and installing it for you. For example, USS recently participated in a deployment with a large retail chain. Eight different stores had different systems deployed, and USS

You can deploy the most advanced system in the world with all the bells and whistles, but if your employees don’t know how to use it to its fullest extent, that system is useless to you. As a result your ROI can go right out the window.

Does that mean that the new IP video systems are much more complicated than the analog CCTV? Not necessarily more complicated, but they certainly have a lot more options and features. In the old days of analog, there were just a few buttons—Record, Play, Rewind, Fast Forward. But with a software-based enterprise system, you can have dozens of features and settings. That’s really why modern companies are deploying IP systems in the first place—better analytics, better insight, more capabilities, quicker decision making. The challenge is to go from having employees who are used to a few simple commands to having them understand and grow comfortable with a system that is feature-rich.

had one of those stores to set up and train. Once the work was done, our retail partner told us, “Our employees only know how to use the system in one of these eight stores—the one you set up.” I wasn’t surprised. We put a great deal of emphasis on training because your whole ROI really depends on that.

How do you go about doing that? Well, the starting point is to determine what kind of training is available for the platform you are considering. Nowadays there’s a myriad of solutions and devices with lots of different ways to set up an enterprise system. If you are interviewing several integrators—your deployment partners—quiz them about what they will do after the system has been installed. Will they train your employees? How? And how quickly can you expect for your employees to be fully comfortable with their new system? When you are investing a lot of

What are some key questions to ask the solution provider? What will it take for my employees to be able to fully take advantage of the solution? What does your training program look like; is it portal, module, online, on-site? Do you provide different levels of training; for example LP folks, marketing, security, operations, et cetera? What kind of service or training agreements are available to us? Really, the ultimate question is, after you’ve purchased the systems, will you still have the help you need? And of course, the answer you are looking for is a firm and unequivocal, “Yes.”

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ANNUAL INDEX January/February 2014 EAS Source Tagging: 20-Plus Years of Innovation by Robert L. DiLonardo, Contributing Editor (p. 15) LP Takes on a New Meaning When Your Inventory Is Alive by Adam Paul, Contributing Writer (p. 43) More Complex and Ever More Mobile by Mark Johnson, The Risk Management Group (p. 55)

Academic Viewpoint by Richard C. Hollinger, Ph.D. Employees Are More Likely to Steal Than Customers (Jan/Feb 2014 p. 26) 2012 NRSS Executive Summary (Mar/Apr 2014 p. 24) A New Employee Theft Study (Sep/Oct 2014 p. 24) The Dark Side of Good Customer Service (Nov/Dec 2014 p.24)

March/April 2014 The IOBSE: A Message of Inclusion and Leading with Purpose by Jacque Brittain, LPC, Editorial Director, Digital (p. 15) EAS Source Tagging: 20-Plus Years of Innovation (Part 2) by Robert L. DiLonardo, Contributing Editor (p. 39) Meet Generation Z: The Next Wave of Retail Workers by Bruce Tulgan, RainmakerThinking (p. 53)

Ask the Expert The Basics of Data Analytics with Nathan Smith, Sysrepublic (May/Jun 2014 p. 54) Data Security: Reaching Beyond Compliance with Paul Murray, Wontok, Inc. (Jul/Aug 2014 p. 48) Video Surveillance Tools: Seeing the Big Picture with Mike Dunn, BSI (Sep/Oct 2014 p. 50) No Training, No ROI with Gerald Becker, USS (Nov/Dec 2014 p. 50)

May/June 2014 Using Big Data to Reduce LP Investigation Workload by Eduardo Coccaro, Elizabeth Jones, and Xiaoqui Liu, University of Texas (p. 15) In-Transit Cargo Crime by John Tabor, All States Locate (p. 41) The ROI for RFID in Retail by Bill McBeath, ChainLink Research (p. 55) July/August 2014 Building a New Defense Team by Jacque Brittain, LPC, Editorial Director, Digital (p. 15) The Challenges in Dealing with Data Breaches: A Cybersecurity Panel Discussion moderated by Ryan Knisley, Accenture (p. 39) Active Shooter: Is Having a Plan Enough? by Jacque Brittain, LPC, Editorial Director, Digital (p. 49) September/October 2014 The Evolution of the LP Professional by Jack Trlica and Jacque Brittain, LPC (p. 15) Racial Profiling: We Can No Longer Just Turn Our Heads by Jacque Brittain, LPC, Editorial Director, Digital (p. 39) Inspiring Integrity with Brian Bazer, dressbarn (p. 51) November/December 2014 Products in Motion: Keeping Pace with the Global Supply Chain by Jacque Brittain, LPC, Editorial Director, Digital (p. 15) NOISH: The Science of Safety by Dr. Vern Putz Anderson, Ph.D., CPE, NOISH (p. 39) 2015 Product Showcase and Resource Guide (p. 51) Interviews by James Lee, LPC, Executive Editor Building a World-Class LP Team with Karl Langhorst, The Kroger Co. (Jan/Feb 2014, p. 31) Aligning Loss Prevention with the Customer Experience with Claude Verville, LPC, Lowe’s (Mar/Apr 2014 p. 27) 25 Years at Saks Fifth Avenue with Rosamaria Sostilio (May/Jun 2014 p. 27) From Store Detective to Research Scientist with Read Hayes, Ph.D., CPP, LPRC (Jul/Aug 2014, p. 27) The First Person You Must Lead Is You with U.S. Army Brigadier General (retired) Becky Halstead (Sep/Oct 2014 p. 27) Assessing Today’s LP Industry: Three viewpoints from a retailer, a supplier, and an entrepreneur (Nov/Dec 2014 p. 27)

Associations in Action ASIS International’s Retail LP Council by Keith Aubele, CPP, LPP (Sep/Oct 2014 p. 64) Certification How Will You Be Measured? by Gene Smith, LPC (Jan/Feb 2014 p. 52) Will Certification Benefit Solution Providers? by Gene Smith, LPC (Mar/Apr 2014 p. 62) On the Move? Let’s Start with the LP Foundation by Jacque Brittain, LPC (May/Jun 2014 p. 38) Education Is Now More Affordable for Veterans by John Clark (Jul/Aug 2014 p. 24) Building Careers, Validating Expectations with Santo Zenone, LPQ (Sep/Oct 2014 p. 58) Real-World Perspective with Christyn Keef, LPC (Nov/Dec 2014 p. 68) Digital Dialogue by Jacque Brittain, LPC Quality Drives the Value of Information (Jan/Feb 2014 p. 28) Managing Industry News: Are You Staying Connected? (Mar/Apr 2014 p. 66) A New Age of Natural Selection (May/Jun 2014 p. 24) Staying Informed: Is It Really That Important? (Jul/Aug 2014 p. 36) Cold Heads, Warm Hearts, and Social Media (Sep/Oct 2014 p. 70) Slowing Down the Game (Nov/Dec 2014 p. 48)

Evidence-Based LP by Read Hayes, Ph.D., CPP Who Do We Watch and How Do We Respond? (Jan/Feb 2014 p. 40) Making Things Happen (Mar/Apr 2014 p. 50) Decisions, Decisions (May/Jun 2014 p. 52) Making an Impact Ten Years Going (Sep/Oct 2014 p. 48) ImpactX Conference: LP on the Move (Nov/Dec 2014 p. 36) Interviewing by David E. Zulawski, CFI, CFE and Shane G. Sturman, CFI, CPP A Lie…Is It Or Isn’t It? Part 3 (Jan/Feb 2014 p. 12) Does It Pass the Smell Test? Part 1 (Mar/Apr 2014 p. 12) Does It Pass the Smell Test? Part 2 (May/Jun 2014 p. 12) Preparing the Final Statement: Part 1 (Jul/Aug 2014 p. 12) Preparing the Final Statement: Part 2 (Sep/Oct 2014 p. 12) Not Everyone Is Hannibal Lector (Nov/Dec 2014 p. 12) Parting Words by Jim Lee, LPC Powered by Excellence (Jan/Feb 2014 p. 74) Make up Your Mind to Be Happy (Mar/Apr 2014 p. 74) Show Me the Way (May/Jun 2014 p. 82) The Expert That Lives Within Each of Us (Jul/Aug 2014 p. 66) Sitting Over Coffee One Morning (Sep/Oct 2014 p. 74) November 4th Was Election Day (Nov/Dec 2014 p. 74) Partnering with Retailers A Joint eBay and Karen Millen Investigation by Zuzanna Crawford (Sep/Oct 2014 p. 36) Staying Safe with Online Vehicle Sales by Kevin Black (Nov/Dec 2014 p. 38) Publisher’s Letter by Jack Trlica Lessons from a New Employee (Jan/Feb 2014 p. 6) Retail Consultant Symposium (Mar/Apr 2014 p. 6) A New Source-Tagging Roadmap (May/Jun 2014 p. 6) Loss Prevention’s Role in Data Security (Jul/Aug 2014 p. 6) Hitchhiking Or Driving the Technology Superhighway? (Sep/Oct 2014 p. 6) LP Research Needs Your Support (Nov/Dec 2014 p. 6)

Statement of Ownership Publication title: LossPrevention Filing date: 10/1/2014 Issue frequency: bi-monthly No. of issues annually: 6 Mailing address of office of publication: 700 Matthews Mint Hill Rd, Ste C, Matthews, NC 28105 Mailing address of headquarters: same Name and address of publisher, editor, and managing editor: Jack Trlica, same address as above Corporate owner: Loss Prevention Magazine, Inc., 10433 Pullengreen Dr., Charlotte, NC 28277 Stockholders: Jim Lee, 10433 Pullengreen Dr., Charlotte, NC 28277; Jack Trlica, 7436 Leharne Dr., Charlotte, NC 28270 Publication title: LossPrevention Issue date of circulation data below: July-August 2014 Avg. No. Copies No. Copies of Single Each Issue During Issue Published Preceding 12 Months Nearest to Filing Date Total no. of copies 25,750 25,000 Outside county paid/requested subscriptions 17,547 16,923 In-county paid/requested subscriptions 0 0 Other paid/requested distribution outside USPS 6,214 6,182 Requested copies distributed by other mail classes through USPS 0 0 Total paid and/or requested circulation 23,761 23,105 Outside county nonrequested copies 237 750 In-county nonrequested copies 0 0 Nonrequested copies distributed by other mail classes through USPS 0 0 Nonrequested copies distributed outside the mail 1,083 940 Total nonrequested distribution 1,320 1,690 Total distribution 25,700 24,795 Copies not distributed 619 205 Total 25,700 25,000 Percent paid and/or requested circulation 94.7% 93.2% Name and title of publisher: Jack Trlica, Editor and Publisher Date: 10/1/2014 LP MAGAZINE | NOVEMBER - DECEMBER 2014

CERTIFICATION Interview with Christyn Keef, LPC Christyn Keef, LPC, has worked in the retail industry for thirteen years and in the loss prevention realm for the past eight. She began her career with Walmart Stores, while attending the University of Florida. Keef is currently a regional asset protection senior manager for Walmart large formats in North and Central Florida. She has a bachelor of science in history from the University of Florida.

Real-World Perspective T

his is another in a series of interviews with working LP professionals who have earned their LPQ or LPC certifications from the Loss Prevention Foundation (LPF) to hear in their own words why they pursued certification and how it has benefited their careers. Why did you decide to pursue the LPC certification? Our company believes in the education and development of our associates and made the decision to invest in the certification opportunity for some members of our asset protection team. I was excited to have been selected and enthusiastically agreed to begin the course. I enrolled in the program last year and was certified LPC in June 2014.

different than in any other industry. The LPC course helped me to see the advantages of that uniqueness, and provided direction on how to capitalize on it. I also valued the training that came with learning some of the different approaches taken by other retailers, from distribution to inventory calculations. I have only worked with one company from an LP perspective, and having the opportunity to expand

The issues we face as LP professionals are so complex, unique, and impactful in scope that we sometimes think we’re isolated from other creative, collaborative forces. I’m a better LP professional after getting certified because I’ve realized that these problems aren’t new. They’re exciting, challenging ways to grow our business and move into the future.

Was the course what you expected? Actually, the course was not what I expected. I was somewhat apprehensive about investing so much time exploring something I had already been doing professionally for years. But I was pleasantly surprised when the first few chapters focused on team building, training, and recruitment. To be fully transparent, I had expected the process to be a somewhat monotonous review of endless equations and statistics. Instead, I found myself scribbling notes and highlighting quotes about soft skills I never even realized added such value to a high-performing loss prevention team. It helped to know that many industry practitioners struggled with some of the same gaps I was seeing, and I began incorporating the material into my business on the first day of enrollment. Tell us more about going through the courses and taking the exam. I quickly realized the value of leveraging the resources made available by the LPF to help me through the program. I began routinely using the Study Gopher notes as I worked through the courses, which really helped. I also tried to get through the chapters at a steady and realistic pace, which helped me to absorb the information while continuing to move forward. The ability to advance or go back to certain content areas was definitely something that helped with the process and was relatively unique to the LPC method. Having a timeline for completion and knowing that I would be certified by a goal date I set for myself also helped me to progress. The exam wasn’t easy, but it makes the certification that much more legitimate in my mind. It’s something that you have to earn, and that’s the way it should be. Looking at your own personal development, what information within the course helped you the most? I still refer back to the team-building pieces often. There’s something about building a productive and professional LP team that’s

that knowledge base has been invaluable during both networking interactions and in developing creative solutions to problems within my own environment. What part of the curriculum was the most eye-opening? The amount of government oversight and the various regulations that are involved in what we do every day was staggering. I knew it was there, but taking the time to read about each entity’s role and responsibility gave me an even greater appreciation, and brought the importance of our function to a new light. What benefits have you seen from taking the course? The course helped me to see the field of loss prevention from a more global perspective. You never know what will happen within your area of responsibility, but the certification process provided a learning experience that presents sound and relevant guidelines that will help today, and will continue to help guide decisions in the future. I feel like I’m better equipped to not only excel at the services I’m paid to provide, but to be a resource for my team and my customers.

NOVEMBER - DECEMBER 2014

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I now approach decisions with a more creative mindset. I know that there are different ways to get a job done from an LP perspective, and that the way I’ve always done things may not be the best way to continue doing them. That reflection and flexibility will make me a better professional and a stronger leader. The issues we face as LP professionals are so complex, unique, and impactful in scope that we sometimes think we’re isolated from other creative, collaborative forces. I’m a better LP professional after getting certified because I’ve realized that these problems aren’t new. They’re exciting, challenging ways to grow our business and move into the future. How has certification changed your expectations of loss prevention as a career? Like most LP professionals, I didn’t initially have this in mind as a long-term career goal. I have grown in the LP role, and it has grown on me. Now with the LPC certification, I’ve had the advantage of seeing the progression of LP as a profession throughout the industry. There’s a certain camaraderie in seeing an “LPC” behind someone’s name. It is definitely something that I would recommend to others. We are so busy in today’s environment. We make countless investments in our team, in our stores, in our security measures, and in so many other aspects of what we do. At what point do you decide you need to set time aside to invest in yourself and your own development? The courage and dedication it takes to work through a self-development certification isn’t something that will go unnoticed. I’ve noticed what it’s done for me, and that’s a good place to start.

Newly Certified

Following are individuals who recently earned their certifications.

Recent LPC Recipients

Recent LPQ Recipients

Mike Aldridge, LPC, 7-Eleven

Mary Geeslin, LPQ, ULTA Beauty Zachary Hayes, LPQ, 7-Eleven Julia Hendrickson, LPQ, Rite Aid Heriberto Hernandez, LPQ, Northgate Markets Brian Nowlan, LPQ, Goodwill Industries of Seattle Idmelda Perez, LPQ, Northgate Markets Jose Prado, LPQ, Northgate Markets Kristine Rasmussen, LPQ Carolyn Rickman, LPQ, Food Lion Adam Rutkowski, LPQ, Visionworks David Scully, LPQ, CVS Caremark Dan Simons, LPQ, Walmart Aaron Tellez, LPQ, Northgate Markets Steven Tomich, LPQ, Best Buy Ryan Tunnell, LPQ Daniel Turno, LPQ Megan Witty, LPQ, Goodwill Industries International Ryan Wood, LPQ

Dustin Brown, LPC, CFI, SpartanNash Deborah Bunch, LPC Keith Clarke, LPC, CFI William Hill, LPC, AutoZone Mark Jeffery, LPC, Family Dollar Mary Joiner, LPC, Walgreens Kelley Lederer, LPC, CFE, TJX Peter Melas, LPC, Macy’s John Melli, LPC, CFI, Sterling Jewelers Troy Moreau, LPC, Lowe’s Jonathon Pollard, LPC, Walmart Marcus Presley, LPC, Walmart Rudyard Robinson, LPC, G4S Secure Solutions Michael Rusk, LPC Antonio Salzedo, LPC, Burlington Coat Factory William Strouse, LPC, Staples Holly Urfer, LPC, Publix Super Markets

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INDUSTRY NEWS

Robust Growth Forecasted for Real-Time Location Systems by Robert L. DiLonardo

ccording to a recently published study by MarketsandMarkets (marketsandmarkets.com), the global real-time location systems (RTLS) market is expected to grow at a compounded annual rate of 31.2 percent from 2013 to 2020 and reach $3.70 billion in 2020—about six times higher than the current estimated revenue level. What is RTLS, you ask? Why is it going to be important in retail loss prevention? Typical RTLS systems consist of operating software with a graphical user interface; computer and communications hardware, such as readers, routers and network infrastructure; and battery-powered radio frequency identification (RFID) tags with above-normal capabilities, such as two-way communications or the ability to display prices. These solutions allow anyone from homeowners to large enterprises to identify an asset with real-time visibility, to add an additional element of security, facilitate operational efficiency and in-store execution, or improve productivity. In layman’s terms, it is a combination of RFID, small-scale “global positioning” (GPS), and tracking. Large companies such as Airbus (France), Aston Martin (Germany), BMW (Germany), and Caterpillar (US) use RTLS solutions in manufacturing operations. Primitive asset-tracking systems have been around since the late 1980s, predominantly in the healthcare industry, where they continue to be used to track physical assets as well as patients. The component list was essentially the same—battery-powered RFID tags with minimal usable bits of memory; readers [think proximity access-control readers indoors, and detection loops for vehicles]; and a computer to handle the identification matching and processing of the other data required by the application.

Retail Barely Scratching the Surface

Over the past five years, a few retail security equipment manufacturers have developed much more robust RTLS systems to identify, track, and protect merchandise; manage specific safety and operational issues; and take advantage of merchandise marketing opportunities. Up until now, sales to end-user retailers have been slow to materialize mainly because of limited feature functionality, an unfavorable cost-benefit calculation due to the high initial cost of the system components, as well as the recent weakness of the economy. Another adoption issue has been the inevitable customer pushback in allowing any needed interfacing between the

supplier and the inventory databases of their retail customers. Yet another is the recent focus upon spending for point-of-sale system upgrades, mobile communications hardware, moving data to the cloud, and Omni-channel marketing initiatives. All of these endeavors are expensive and compete with RTLS systems for available capital. However, there have been a couple of small-scale, but notable success stories. Protecting Expensive Handbags. WG Security Products offers its Sentinel System, which includes WiFi readers, tags, and management software. Bloomingdale’s has been using it for about two years to locate, track, and manage the movement of expensive Chanel handbags that range in price from $4,000 to $12,000 each. These handbags “move” in two primary instances—when a personal shopper needs to show it to a prospective customer, or when the display department wants to feature it on the selling floor. In this application the system isn’t required to track movement. Its primary purpose is to verify that the merchandise is located where it has been assigned. Bloomingdale’s management stated that no handbags were lost in 2013. Tracking Display Shoes. Alpha High-Theft Solutions, a division of Checkpoint Systems offers an RTLS system called S3intelligent that is used by a leading department store in the US for display compliance in its shoe department. The system addresses three issues that most retailers face when selling shoes: How to get shipments of new shoes displayed as quickly as possible? How to notify associates if a shoe is not on display? How to relocate and change prices on shoes that have been marked down to clearance areas within the departments? The S3i Price Tag application is supported by a low-power, wireless network, and provides real-time information indicating which shoes are on display and which are not. With more than 5,000 tags in four test locations across the Southeast during the past eight months, results have been dramatic—a 17 to 20 percent increase in sales and a positive display audit variance of over 8 percent compared to control stores. Its usage has eliminated the need for manual shoe audits and price changing—adding an element of labor savings to the benefits mix.

The Cloud and the Internet of Things (IoT) Will Facilitate RTLS Adoption Rates

The key drivers of the future growth of RTLS systems will be the proliferation of the so-called “cloud” and the Internet of Things (IoT). We know that the cloud is capable of storing and facilitating the retrieval of an unfathomable quantity of data. In that capacity it has simplified data storage and connectivity issues, and made everything much more affordable and less complex. The continued growth of the cloud will provide momentum to end-user investments in RTLS technology. The Internet of Things is a scenario in which objects, animals, or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT is evolving from the convergence of wireless technologies, micro-electromechanical systems (sensors and tags), and the Internet. To provide a bit of scope, Gartner Research estimates that there will be nearly 26

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billion devices on the IoT by 2020. Built-in intelligence, communications, and tracking capabilities will serve to lower the total cost of providing RTLS systems by eliminating the need for a separate “tag.” Consumers have the ability to utilize rudimentary RTLS systems at home. Excellent examples are home security (simplisafe.com) and the automation of in-home systems that control temperature and lighting. Consumer electronics retailers and product manufacturers are recognizing the importance of two-way wireless communication, and they are developing WiFi enabled, smart home products. Through a recently signed partnership between The Home Depot and the Quirky subsidiary Wink (winkapp.com), the companies are collaborating on a line of products that can be controlled via an app designed for a tracking operating system called Wink. Home Depot has 48 such products listed for sale online. Tyco in late September announced that it is enhancing its IoT capabilities with its new TrueVUE 5.2 operating software that can gather data from RFID, video, EAS, and traffic sensors, and transform it into actionable data focused on solving problems in an array of areas beyond retail loss prevention.

Potential Benefits of RTLS in Retail

There are a number of benefits on this new technology for retail. theft control—High-risk merchandise can be tracked and will alert upon entering designated areas of concern. Information can be accessed and alerts generated through mobile phones, tablets, and most other communications devices. ■ Real-time data access. ■ Inventory management—Inventory accuracy of protected merchandise approaches 100 percent, providing the opportunity to improve on-shelf availability. ■ Productivity improvements. ■ Process improvements. ■ Risk mitigation. ■ Incremental sales and the gross margin they generate, from the above application. New innovations in item-level security for retail have been few and far between. Some industry experts see RTLS as the next high-profile technological advance. “At a time when retailers have asked for more technology and some are questioning the ROI with EAS, RTLS will provide the level of performance many of us have come to demand from our smart phones,” said Jim Wyatt, vice president of marketing, retail for Synapse Wireless, an RTLS system developer. Speaking to technology providers, he added, “It’s time to step-up and provide compelling solutions.” ■ Improved

Steve Woodland Will Be Missed Legacies are built in many ways, but perhaps none are more important than those carved into the memories of those whose lives we’ve touched through our words, our actions, and our friendship. The loss prevention community recently lost one of its own when Steve Woodland passed unexpectedly in October at 62 years of age. A devoted father and husband, Woodland also shared a close relationship with his extended family as assistant vice president of loss prevention at TJ Maxx International, where he served for 32 years. Colleagues throughout the organization speak fondly of his bright personality and strong sense of humor. Always the consummate professional, Woodland led with both purpose and compassion; excelling in the execution of his responsibilities and leaving a strong impression on all of those who shared time with him. He was someone that you could depend on and trust, always showing the highest level of integrity, and treating everyone with respect. He was quick to offer help or advice, passionate and trustworthy as a professional partner, and a devoted mentor and friend to those who knew and loved him. Leadership is a gift, but friendship is a blessing. On behalf of a grateful loss prevention community, we offer our thoughts and condolences to his friends, his professional colleagues, and his loving family. He will be missed. LP MAGAZINE | NOVEMBER - DECEMBER 2014

CALENDAR

January 11 – 13, 2015 National Retail Federation 104th Annual Big Show Javits Center, New York City bigshow15.nrf.com February 3 – 4, 2015 United Publications TechSec Solutions Delray Beach Marriott, FL techsecsol.com February 22 – 25, 2015 Retail Industry Leaders Association Retail Supply Chain Conference Gaylord Palms Resort & Convention Center Orlando, FL rila.org March 3 – 5, 2015 Jeweler’s Security Alliance 37th Annual Security Seminar and Expo Marriott North, Fort Lauderdale, FL jewelerssecurity.org March 9 – 12, 2015 Food Marketing Institute Asset Protection Conference Peabody Hotel, Memphis, TN fmi.org March 23 – 26, 2015 Merchant Risk Council e-Commerce Payments & Risk Conference Aria Resort, Las Vegas, NV merchantriskcouncil.org April 15 – 17, 2015 ISC West Sands Expo & Convention Center Las Vegas, NV iscwest.com April 29 – May 1, 2015 International Organization of Black Security Executives Annual Spring Conference Hosted by The Home Depot Atlanta, GA iobse.com May 3 – 6, 2015 Retail Industry Leaders Association Asset Protection Conference Gaylord Palms Resort & Convention Center Orlando, FL rila.org June 23 – 25, 2015 National Retail Federation NRF PROTECT Long Beach (CA) Convention Center nrfprotect15.nrf.com

ADVERTISERS Agilence................................................................ 23 agilenceinc.com/retail-2020-solution Alpha...................................................................... 17 alphaworld.com Axis Communications............................................ 9 axis.com/retail Bass Security....................................................... 29 bass-security.com Checkpoint............................................................ 19 checkpointsystems.com ClickIt..................................................................... 31 clickitinc.com Detex...................................................................... 13 detex.com FireKing Security Group...................................... 69 fireking.com InstaKey................................................................. 33 instakey.com Intelligent Loss Prevention................................. 30 intelligentlossprevention.com International Assoc. of Interviewers................ 47 certifiedinterviewer.com Kenwood............................................................... 35 kenwoodusa.com/protalkinfo LockUp by Digilock................................................ 2 lockup.com Loss Prevention Foundation............................... 26 losspreventionfoundation.org Milestone.............................................................. 33 milestonesys.com Palmer, Reifler and Associates.........................26 palmerreifler.com Protos Security....................................................... 3 protossecurity.com The Retail Equation................................................ 5 theretailequation.com/success Salient Systems.................................................... 25 salientsys.com Security Resources............................................. 75 securityresources.net Shrinkify................................................................. 45 shrinkify.co Sony....................................................................... 21 sony.com/security Sysrepublic........................................................... 43 sysrepublic.com Tyco Integrated Security.................................... 76 tycois.com/retail Verisk Retail............................................................ 7 veriskretail.com

PEOPLE ON THE MOVE Kevin Robinson, CFI was appointed Director of LP for Altar’d State. Tanya Jackson is now a Senior Area LP Manager for Bed Bath & Beyond. Josh Winner was made a Regional Manager of Investigations for Bloomingdale’s.

Ralph Lauren made the following changes: Chris Hinger, LPC to VP of AP North America, Chris Ayre to VP of LP, NC Campus and Global Supply Chain, and John MacLeod, CFI to Associate Director of AP.

Joshua Frazier is now Divisional AP Manager for Boddie-Noell Enterprises.

The Paradies Shops named Mike Saphos Shrink Control Manager, Eric Tullis District LP/Safety Manager, and Billy Childers LP/Safety Operations Manager.

Brian Fox was made Corporate AP Operations Senior Manager for Cabela’s.

Kevin Byrne is now a Regional AP Manager for Regis Corporation.

Catherine Hardy was made Area LP Manager for Charlotte Russe.

Kristen Silva was appointed Regional AP Manager for REI.

Glen Canarte was appointed Corporate Manager of LP and Bill Patterson is now a Regional LP Manager for The Children’s Place.

Paul Schorlemmer is now Regional LP Manager for Sketchers.

Jonathan Price is now Senior Manager, Safety and Loss Control for Denny’s. Tom Counts, CFI, LPC was made District LP Manager for DICK’S Sporting Goods. Tom Ellis is now a Regional LP Manager for Dollar General. Gregg Smith, CFI was made Senior Director of LP for Five Below. Blake Mitchell is now Regional LP Manager for Forever 21. Mike Matz was named Divisional LP Manager and Dawn Roller was made Regional LP Investigator for The Great Atlantic & Pacific Tea Company. Lloyd Stacey is now Director of LP for Imperial Parking Corporation. Kevin Colman was appointed Group VP of AP for Macy’s. Juan Ospina, CFI was appointed Senior Regional LP Manager for Michael Kors.

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Allen Flower, CFI is now Regional LP Manager for Sterling Jewelers. Meghan Strickland, CFI was made National AP Manager for Studio Movie Grill. Walter Mulhall, LPC was made Director of LP for Tacala Companies. Gary Evaniuk, CFI is now Regional LP Manager, Western Canada for Town Shoes Limited. Michael Mayernik was made Area LP Manager for ULTA Beauty. Linda Chiappone is now Director of Analytics for The Zellman Group.

To stay up-to-date on the latest career moves as they happen, sign up for LP Insider, the magazine’s weekly e-newsletter, or visit the People on the Move page on the magazine’s website, LPportal.com. Information for People on the Move is provided by the Loss Prevention Foundation, Loss Prevention Recruiters, Jennings Executive Recruiting, and readers like you. To inform us of a promotion or new hire, email us at peopleonthemove@LPportal.com.

VENDOR SPONSORS

NATIONWIDE GUARD MANAGEMENT

VENDOR ADVISORY BOARD Agilence Pedro Ramos Vice President, Strategic Accounts

ClickIt Inc. Jim Paul Director of Sales

Intelligent Loss Prevention Joerg Niederhuefner Director, Business Development

Security Resources, Inc. Kris Vece Business Development

Alpha Diane Wise Global Marketing Manager

FireKing Security Group James Currey Senior Vice President Cash Management Solutions

Milestone Systems Trenton Thoms Retail Sales Manager

Sysrepublic Christopher D'Amore Owner/Partner, Global Sales

Palmer, Reifler & Associates Jeff Welch Executive Director

Turning Point Justice Lohra Miller President and CEO

Detex Ken Kuehler National Account Manager

Protos Security Patrick Henderson Vice President

Tyco Integrated Security Kevin E. Lynch, LPC Executive Director

Digilock Marcy Ream Vice President of Marketing

The Retail Equation Tom Rittman Vice President, Marketing

InstaKey Security Systems Cita Doyle, LPQ Director of Sales & Marketing

Salient Systems Mary Wilbur Director of Marketing

Universal Surveillance Systems Anthony Oliver Chief Marketing Officer Chief Technology Officer

Axis Communication Hedgie Bartol Business Development Manager, Retail Bass Security Paul Fisher Vice President, Sales & Marketing Best Security Systems (BSI) John Gantenbein President Checkpoint Carlos Perez Senior Director, Global Marketing

Corrective Education Company Darrell Huntsman CEO

LP MAGAZINE | NOVEMBER - DECEMBER 2014

Verisk Retail David Duhaime President Verisk Crime Analytics

PARTING WORDS

November 4th Was Election Day T oday was Election Day, and I voted for all of my favorites. Some of my choices won while others did not, but it is what it is. The results are in and we all move on to 2015. And so it is at the magazine as well—we move on to 2015. There are some exciting plans ahead for us and our readership. I have a really cool job. I get to work with all of my favorites. As such, if there was an LP election I would be voting for all those executives, LP professionals, and solution providers who support the magazine. Here is a big “thank you” and shout out to all of our readers and those who contributed. Here is my vote for some of my favorite features and people who appeared in the 2014 magazine editions. I vote for Bob DiLonardo, who authored the two-part series on “EAS and Source Tagging: 20-Plus Years of Innovation.” Bob has been our number one contributor to the magazine since beginning in 2001. Part One appeared in January, and Part Two in the March issue of the print magazine. It is a great chronicle of the evolution of EAS and a tribute to the people, vendors, and retailers who made this technology possible. I vote for Karl Langhorst and the executive LP staff at Kroger for giving us an inside look at how they’ve built a program that values high standards, teamwork, internal growth, and alignment with the business of retail. This was a special visit for Jack Trlica and myself—sitting face-to-face with the team leaders and hearing them speak about their

Jim Lee, LPC Executive Editor

initiatives and the pride they have in their work. See the January edition. I vote for Claude Verville, VP of LP for Lowe’s, who shared the story of “Aligning Loss Prevention with the Customer Experience.” This story in the March issue tells of a reorganization that established two chief officer positions—the chief customer officer and the chief operations officer—that were put in place to ensure that everything strategically done at Lowe’s is designed around the customer experience. As a side note to this powerful interview, Verville insisted that we showcase his staff rather than allowing us to include any photos of him. I vote for Rosamaria Sostilio, who gave us a look at 25 years at Saks Fifth Avenue and her evolution in asset protection. From technology to cross-training to diversity of thought to spirit committee to a passion for this business and the people in it, read and enjoy the story again in the May issue. I vote for Jay Fogg, SVP of operations at Bloomingdales, who was an exceptional moderator at the RILA LP conference. Fogg’s relaxed, confident, probing style was fun to witness as he allowed Bob Oberosler from Rite Aid, Libby Rabun of Auto Zone, and Mark Stinde from 7-Eleven to speak about their passion for asset protection. I vote for Read Hayes and our conversation with him in the July issue. It is a grand visit and a look inside ten years of LPRC. The mission was “informed engagement and actionable output,” which is professor speak for “what do you want to know, and

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how would you use it.” Our interview with him, “From Store Detective to Research Scientist,” is yet another example of how so many executives in this business started at the entry level. I vote for “The Evolution of the LP Professional” feature article that appeared in September. This is a peek into what many believe we will look like in the future. The contributors for this piece were retailers, LP leaders, and vendor executives. Read about how being “relevant” is no longer good enough. The role of LP is essential to enhancing the profitability of our companies. I vote for Brigadier General Becky Halstead, a woman of many firsts. Our interview in that same September issue is entitled “The First Person You Must Lead Is You.” Reading her book, speaking with her, and having her talk to our editorial board was very special. If you are ever looking for a true definition of integrity and examples therein, here is the person to go to. Lastly, and I’m sure most importantly, I vote for Steve Woodland (see page 71). While many of you may not know of Steve, I am proud to say that I did. Steve was an LP executive for more than 25 years. He passed suddenly at far too young of an age. The families at TJ Maxx and Marshall’s knew him well, and mourn our shared loss. He was a big man with an even bigger heart. We miss you Woodland.

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November - December 2014

Articles inside

PARTING WORDS

DIGITAL DIALOGUE

INTERVIEWING

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