Cutting Retail Losses

• By Brian Davidson
• Nov 13, 2024

Retail is still a more complex and dynamic security vertical in modern society. Inherent challenges with in-store and distribution center operations are primarily due to constantly shifting consumer buying trends. Retailers must show daily flexibility to keep workers, meet sales goals and attract customers while maintaining safe and efficient operations. Retail is an intricate web of interconnected elements.

At the heart of a growing number of organizations is the adoption of advanced security solutions for key and asset management that prove their worth daily through improved workflow and comprehensive monitoring.

In-store Application
Like most security verticals, retail begins with access control – who is allowed, where and when. Keys are a critical asset to accessing all parts of a store, and too often, managers do not implement a comprehensive system for their use.

Outdated systems like notebooks and drawers are susceptible to theft, and just one master key in the hands of an unauthorized user can be disastrous for any retail entity.

As such, many retailers use intelligent key cabinets to know where each key is at any time and restrict access to only those employees who genuinely need to be in a particular area. The physical keys can also be programmed by an administrator with a curfew feature, so a notification is immediately sent if they are not returned to the cabinet at the end of a shift. Not only does this increase safety measures, but it also cuts down on time spent looking for any misplaced keys.

Where employees have access to it is fundamentally essential. However, what they have access to is just as critical. In-store operations depend on accurate inventory control, and managers must have a 10,000-foot view of which employees are overseeing which product.

Interestingly, while external theft plays a significant role in retail security, internal theft is also rising. The National Retail Federation estimates internal and external theft accounts for as much as 70% of shrinkage in some retail sectors.

Several shared devices are widely used in inventory control, most notably handheld scanners, which can provide instant information on quantity and send reports to match up with sales records. Because they play such a critical role in operations, scanners must be carefully managed to avoid any potential mistakes in reporting and help safeguard against theft. Ironically, shared devices are also susceptible to theft, as they can garner significant value in the secondhand market. Because of that, asset management lockers are an increasingly popular solution to combat theft.

Just like with key cabinets, asset management lockers help managers know who has (or had) which asset and if it is not returned by a specific time, they can be alerted. Lockers can be customized to house all types of scanners, tablets, radios, and laptops and are equipped with in-bay charging. The locker can be programmed to prioritize releasing the most charged asset, reducing the inconvenience and downtime of an employee removing an asset with a dead battery. Similarly, the locker interface can prompt users to provide details on any faults with the asset. This feature will remove that asset from circulation until an administrator has corrected the issue.

Back-end Benefits
The advantages of key cabinets and asset management lockers in retail extend into back-end operations as well. Warehouses and distribution centers are playing an even larger role in meeting online demands, as customers are expecting shipping and delivery seemingly overnight.

That can put a strain on the workers who are filling and shipping those orders, and if they are not running at peak efficiency, the business can struggle.

One of the unique components of warehouse operations compared to in-store is simply the number of employees. Some facilities include hundreds of workers, so the need for administrative monitoring and oversight, especially with shared devices, is even more critical.

A significant advantage of leveraging key cabinets and asset management lockers is avoiding unnecessary queueing at the beginning and end of shifts. Older processes almost always included an entire shift of workers waiting in line to check out their necessary equipment for the day, and typically, that involved doing so with an actual person.

However, with intelligent key cabinets and asset management lockers, the need for that employee is eliminated, and employees can check out those assets autonomously, instilling accountability. If they don’t return it at the end of a shift, the manager knows who had it last.

Asset management lockers can also help extend the life of shared assets in a warehouse setting. As discussed earlier, they can be programmed with fault logging, taking them out of circulation. However, they can also be restricted or removed from the rotation entirely to prevent everyone from trying to use their “favorite” scanner, radio, or tablet.

This saves organizations money from having to replace these essential assets, which are becoming more expensive than ever before.

Finally, key cabinets play a significant role in fleet management for retail operators, both for warehouse machinery and distribution trucks. Operators can manage all keys in a central location without worrying about keeping a logbook. The cabinets can be programmed with the same fault logging as the asset management lockers.

So, if a truck or forklift needs an oil change, a new battery, or any other issue, it can temporarily be removed from usage until that problem is fixed. Finally, an administrator can track all vehicle and asset usage of all warehouses from a centralized, remote location, which can help combine staffing and have all facilities streamlined in their operations and audit reporting.

A Clear ROI
When considering any solution that can help improve efficiency and their bottom line, retail organizations often search for technology that is “future-proof.” They want to know that regardless of what the market looks like in a month, a year or five years, the comprehensive solutions they implement will help guide them through those transition periods. Intelligent key and asset management are two examples of such technology empowering retailers to meet shifting consumer demands by ensuring operational efficiency and safeguarding against potential security threats, both internally and externally.

This article originally appeared in the November / December 2024 issue of Security Today.