Combating Shrink in the Supply Chain –

An Interview with a Loss Prevention Expert
Byron Smith – Thursday, May 28, 2013

Newgistics’ Director of Loss Prevention, Glenn Master, recently spoke on how to address shrink challenges across the supply chain head-on at the RILA conference in Orlando along with David Sacramone, Regional Loss Prevention and Safety Manager with Office Depot.

On any given day, millions of boxes are transported through the global supply chain to consumers. Having to rely on contracted transportation entities, which are outside of their span of control, creates numerous shrink challenges for retailers.

The Gist caught up with Glenn to learn more about his session at RILA and how Newgistics’ fulfillment and returns and delivery solutions address loss prevention.

The Gist: Glenn, thanks for your time. What type of audience did you speak to at RILA? What do you think the biggest problem your audience faces when it comes to loss prevention?

Glenn Master: I had the opportunity to speak with an audience of retailers concerned about how to control shrinkage across their supply chain. Many retailers have little, if any, understanding of how their merchandise flows through the supply chain to/from their clients who order online. In my session, I explained how product moves through the supply chain, and how each touch point with the product presents exposure to loss. On the flip side, each touch point provides an opportunity to proactively implement loss prevention strategies to minimize shrinkage.

TG: When you talk about combating shrink across the supply chain, you’re talking about retailers working with multiple vendors and oftentimes the retailer may not have insight into each specific vendor’s system. What advice did you give to retailers in this situation?

GM: I stressed the importance of retailers’ engagement with and understanding of their vendors’ capabilities as they relate to security, loss trending and investigation if their product is lost or stolen. A lot of retailers do not maximize the loss prevention and anti-shrinkage tools already available to them, and it’s crucial to the bottom line that these existing relationships are explored. Additionally, when retailers are in the selection process with a potential new vendor that impacts their supply chain, it’s important for retailers to ask up front what tools and strategies, if any, are in place to minimize risk at each product touch point.

TG: How does Newgistics support loss prevention?

GM: Loss prevention is a critical priority at Newgistics. We’re in the business of not just moving boxes, but also building businesses with those boxes and every tenth of a percentage point in margin counts. Newgistics works extremely close with the vendors that we contract with to provide security audits.

TG: Any last thoughts you shared at RILA?

GM: Newgistics is not just a vendor to our clients, we’re a partner. This philosophy translates to our goal that our customers have a comfort-level that their merchandise will be protected, while ensuring their consumers’ confidence. Happy consumers are more likely to be loyal customers, and ensuring loss prevention strategies are in place and closely monitored improves the chances each consumer will be delivered a positive experience.

TG: Thanks so much for your time today!

GM: My pleasure.