Typical Problem
Typical losses in companies are due to process inefficiencies and
control gaps that leave opportunities for losses that take place
as: - Products and materials flow mishandling, either in inventories
or through the companies processes causing damage to products;
- Unbilled revenues due to errors, lack of training, poor system
configuration or process gaps;
- Services contracted and remunerated improperly or not in a way
to shape the company's best interest;
- Lack of formal benefits to employees, suppliers and contractors
to act identifying and eliminating losses, among other causes.
Many companies refer to some of their losses as "normal costs
of their business" and consider them acceptable. ICTS has continuously
challenged this concept and achieved significant reduction in the
losses and costs for our clients.
To exemplify the most
commonly quantified losses we detail retailers' inventory losses.
All retailers face losses problems, either Stock Losses* or
Damage/Wastage** caused by clients, employees, suppliers or
contractors.
These problems are identified by the gap between the theoretical
stock, as appears in company’s records, and the physical
stock, actually present in a company. These losses may some
times be hidden, due to inaccurate or manipulated company records.
*Stock Losses: The gap between the theoretical
stock, as appears in company’s records, and the physical
stock, actually present in a company. Stock losses may some
times be hidden, due to inaccurate or manipulated company records.
**Damage/ Wastage: The part of operational damage phenomena,
which is abused or even generated in order to conceal stock
losses. |
Our Solution
ICTS offers an integrated approach, involving suppliers, customers,
employees and contractors, which enable companies to achieve higher
margins and higher profits with permanent and considerable reduction
of losses.
A typical Loss Reduction program aims to review and implement Loss
Prevention solutions that enable a company to detect and prevent
the causes of the losses, either in their processes, systems, staff,
policy and procedures management and implementation. This is achieved
by introducing cultural changes and controls that increases staff
commitment and allows transparency to processes and systems.
Benefits to Our Clients
ICTS practices in Loss Reduction assists our clients to reduce
their losses in a significant yearly ratio, to a level better than
reference group and industry averages. Such a reduction has a direct
impact on the client’s net profits. This significant and permanent
reduction of losses increases the value of the company to owners
and shareholders and represents an additional step to a value based
management of a company.
Typical benefits by industry:Retail: 30%
- The company will gain from improved cash flow and improved on
shelf availability
Telecom: 40% (in traffic loss)
- Increment of revenues due to illegal traffic termination and reduced
alternatives to the official service; reduced payment for settlement
(cost) and improved collection for the decreased fraud
Consumer Goods: 50% – 75%
- The company will gain from improved cash flow and improved product
availability
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