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Stock Loss Cause and Effect Diagram

Stock Loss Cause and Effect Diagram

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Shrinkage for retailers and suppliers of Fast Moving Consumer Goods (FMCG) continues to be a significant problem, one that seems resilient to ameliorative actions. In an effort to respond to the apparent failure of existing approaches to loss prevention, this chapter introduces a 'process-orientated' approach to tackling shrinkage. The approach con...

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The convergence of physical stores and e-commerce has led to the emergence of a new retail business mode in the retail industry. In today’s world, new retail supply chains face the potential risks of disruption caused by natural and man-made disasters, and epidemics. In this paper, we simulate a three-stage new retail supply chain consisting of sup...

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Rarely is the topic of retailing far from the top of the news agenda — not least because of the inflated role the sector now plays in the economies of countries across the world. Measures of consumer confidence, sales and retailer profits are routinely scrutinized by governments and the ‘market’ alike to get a sense of the overall well-being (or not) of an economy — if people are shopping then all is deemed well with the world! This is perhaps not surprising when the scale of the sector is considered. Within the United Kingdom, retailing now accounts for 20% of gross domestic product, generates over £311 billion in annual sales and employs in excess of 3 million people (British Retail Consortium, 2013). It is also a highly competitive market driven by a need to continually evolve to survive as consumer tastes and demands change. This is best exemplified by the rise in e-shopping which has seen consumers increasingly demand the ability to shop online whenever and wherever they so wish leaving some retailers floundering to catch up (Guardian, 2013). For some retailing has fundamentally changed the nature of popular culture in many societies with shopping becoming the pastime of choice for large swathes of the population, undertaken in the new cathedrals of consumerism where they feast upon the latest ‘must have’ products (Bainbridge, 1984; Bamfield, 2012; Dawson et al., 2008a; Kent and Omar, 2003).
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Challenging existing ideas about not only what constitutes retail shrinkage, but also the approach that should be adopted to deal with it, it critically examines how current approaches to managing shrinkage are at best preventative, and how through operational excellence, organizations can reduce the impact it has on their profitability.
Purpose – The purpose of the paper is to draw attention to an area of research that has considerable potential for academic researchers in the disciplines of retailing and distribution studies. Design/methodology/approach – The methodology adopted was an overview of existing literature with a view to identifying possible trends in research in the area of loss prevention. Findings – The paper identifies an extensive body of existing literature and provides an indication of areas for future research in loss prevention. Practical implications – The implications of these key issues are significant to the measurement of shrinkage in terms of the scope across the business from which shrinkage needs to be considered. This finding highlights the need to consider shrinkage as a systemic issue that extends across a business from design, through planning to operational execution. It also identifies the impact of shrinkage on increasing cost and depressing sales and considers the responsibility of management teams in addressing these matters. Originality/value – This paper is an original discussion on the topic and thus of value to the academic community. It is also of value to the practitioner community as it highlights the importance of developing relationships with the academic community.
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