EDITOR’S LETTER
Why Supply Chain?
S
ince the magazine began publishing in 2001, we have included occasional articles on supply chain topics such as cargo theft and distribution center loss prevention programs. However, readers may have noticed that we have included more editorial on supply chain in the recent few years. Why? With the evolution of omni-channel retailing where customers can order online, pick up in store, or return items delivered to their homes at nearby stores, the supply chain and inventory control play a much more important role than a decade ago. And because asset protection organizations play a vital role in supply chain, we have focused more editorial on the subject.
Understanding Today’s Supply Chain In this issue we have several feature articles and columns dealing with different aspects of supply chain. The first is an interview with one of the better-known loss prevention executives in the supply chain security and risk management arena, Maurizio Scrofani, CCSP, LPC (see page 27). Scofani started in loss prevention as a store LP associate before moving into supply chain, so he has a broad perspective on both the loss prevention aspects of supply chain and the overall evolution of omni-channel retailing. In our interview he expresses his opinion of the importance that all LP professionals should have
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a fundamental understanding of supply chain:
on-shelf availability and to support omni-channel retailing. For LP professionals looking to learn more about supply chain, there It’s the right time for brick-and-mortar are two upcoming events to consider. associates to start shoring up their The first is the Retail Industry Leaders glossaries because supply chain AP and Association (RILA) Retail Supply Chain store AP will all be talking the same Conference February 24–27 in Orlando language sooner or later. (see linkretailsupplychain.rila.org). The second is the International Supply In a second feature article on page Chain Protection Organization (ISCPO) 39, we look at some of the traditional annual conference March 6–7 in Dallas challenges of supply chain risks related (see iscpo.org/conference). to cargo theft in transit and inside our distribution centers. The statistics Shoplifting Response revealed in the article by LPM Senior and Self-Checkout Writer Garett Seivold show that despite improved programs and technology, Our two other feature articles should supply chain loss by theft is still an issue not be overlooked. The cover article for retailers: on page 15 discusses an extremely important topic that continues to While cargo-theft data overall seems be debated in our industry—how to suggest that shipments are growing should retailers respond to shoplifting safer, experts insist that loss prevention apprehension? Do we, or don’t we? practitioners need to stay consistently Walter Palmer, CFI, CFE, and Jacque engaged as obstacles and opportunities Brittain, LPC, offer their perspectives. cause cargo thieves to shift tactics. Professor Adrian Beck’s article on page 51 reports on his research into Two columns in this issue also self-checkout. His two-year study takes address other aspects of supply chain an in-depth look at losses associated management. In our ongoing Supply with fixed self-checkout stations Chain column on page 24, another and scan-and-go technologies used well-known supply chain executive by thirteen retailers in the US and Glenn Master discusses issues related Europe. His findings are both alarming to managing contracted third-party and insightful for LP organizations logistics providers who may handle any tasked with managing losses with number of services for moving product self-checkout programs. throughout the supply chain, including the “last mile” delivery to consumers. In our Strategies column on page 58, we interview Guy Yehiav, the CEO of Profitect, about how Jack Trlica analytics are helping retailers fine-tune Managing Editor their logistics and supply chain operations to maximize merchandise
JANUARY–FEBRUARY 2019
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