Dominic Debona

Dominic DeBona

SEC 346

HW #2 Week 3

First, using the root cause analysis for your stock loss (LPM, 2015, p. 4) and risk analysis (Mind Tools, n.d.), identify and explain your threats as predominantly INTERNAL or EXTERNAL

The root cause analysis is a process for identifying main causes of problems and a process for responding to them. The root cause analysis is based on the main idea that effective management teams require more than just dealing with issues as they actually happen. It is better to have tactics in place to prevent loss.

Risk analysis is a process of discovering potential issues that could negatively impact business plans. This helps businesses avoid these risks.

With Mens Wearhouse the main causes for stock loss are internal. With this company there are random inventory checks throughout the fiscal year. These are either performed by corporate or by store managers themselves. This can help keep tabs and also preps for the main yearly inventory. External theft is not very common in Mens Wearhouse as most of the products are tough to conceal in a bag. This makes it difficult for customers to potentially steal from the store.

Second, describe what you are currently doing to curb shrink, especially in terms of technology (e.g., CCTV, EAS) and suggest 1-2 reasons it is not working.

Not all Mens Wearhouse locations have cameras to keep track of not only customers but employees as well. So this is not a tactic used to curb shrink potential loss. The computers are very good at showing inventory company wide so it is very easy to show loss when products are listed in inventory but not physically in the store.

“Most retailers have adopted omni-channel strategies to meet consumers’ demand to browse or buy whenever and wherever they choose. But enabling everything from mobile POS to in-store pickup of online purchases has made inventory management and product logistics far more difficult.” (Beck, A., Brittain, J., Creedon, M., McCauley, N., Shamapande, S.K., & Trlica, C. 2019)

The 5 key ways to reduce shrinkage is to increase employee accountability, train staff to follow security policies and procedures, consider your store layout, develop an environment of loss prevention and invest in automated cash management technology.

Third, explain how you will curb shrink now using either Routine Activity Theory or Crime Prevention Through Environmental Design

Situational crime prevention is based on the routine activity theory. And there are 3 key elements involved for a crime to occur and they are a likely offender, a suitable target and the absence of a capable guardian. By having a capable guardian it kind of cancels out the the offender and their likely target.