October 5, 2017
Identifying and avoiding retail blind spots
For a careful driver, there’s little as frustrating as an accident caused by an object or vehicle in your blind spot. You’re watching the road distraction-free, you checked your side and rear view mirrors — everything looked clear. But then, crunch. It was an impact you weren’t expecting.
Currency management blind spots can impact retailers in the same way. You have a loss prevention team in place, you developed procedures to deal with theft and you have your eyes on the bottom line. But what’s lurking in your blind spot might cause a big problem. It’s a good idea to think about what you might be missing to ensure you drive your business in the right direction, without costly mistakes along the way.
Have you checked these three common blind spots?
- Manual processes: Why spend time worrying about processes that don’t directly impact your sales? Shoppers aren’t impressed by a perfectly balanced store safe or an accurate bank deposit, after all. But lack of efficiency in currency operations can cost you a lot of money, and manual processes are the biggest culprit when it comes to inefficiency.
No matter how much cash your stores take, manual processes involved in reconciling and reporting on cash take time away from other valuable tasks like fulfillment, merchandising and customer service.
When you remove the manual currency management blind spot by understanding exactly how much time and effort is spent on these back office procedures, you can start working to reduce and reallocate that time to activities that drive revenue. Find out how saving time in the back office can help your employees increase sales.
- Poor deposit visibility: Whether your deposits are hand-carried to the bank or picked up by armored car, you probably don’t have much visibility into them after they leave your store and before your bank statement arrives.
You might not know about deposits that are missing, held or inaccurate until days or weeks after they leave your premises, and in that time you could be charged extra fees, miss the opportunity to uncover fraud and deplete working capital.
You need visibility of seven different deposit checkpoints if you want to avoid the blind spots. How many do you have in place? Find out what the seven points are.
- Delayed reporting: Whether you’re plagued by a cashier who’s been $20 short for the last three weeks or by insufficient cash on hand, delayed reporting can keep you from knowing what’s happening in your stores. Many retailers just aren’t aware of how much delayed reporting costs them — it’s a major blind spot.
Delays caused by manual reporting and manual aggregation of reports at corporate keep you from finding the problems in your stores and solving them quickly. Examine each of the reports you require from stores and ask three key questions. Find out what they are and what risks they help you avoid.
Just like when you’re on the road, avoiding blind spots in retail isn’t impossible — it just requires a bit more care. Examining your currency operations for hidden costs and inefficiencies will keep your organization healthy and help you find areas in which you can boost productivity and profits. For ways that you can keep your blind spots clear at corporate and throughout your store locations, read our white paper, Currency Management Blind Spots.