The success of any business depends not only on revenue, but also on minimizing losses. In the case of retail chains, theft of goods may constitute a significant proportion of this item. The bigger the retailer, the harder it is to solve this problem on your own. The traditional solution in this case is to apply to a private security company (PSC), as one of our clients MODIS did, but faced another difficulty.
National security features
MODIS is a federal network of 140 stores across the country. It was impossible to find one contractor to serve the entire network. As a result, several contracts were concluded with various security companies. Obviously, the quality of services varied: some guards did their job in good faith, others systematically violated the terms of the contract.
PSC staff was late for work, did not follow the prescribed dress code, were rude to sellers and even became a source of danger. We are sure that many companies have faced similar problems. But that's not the point. The main difficulty was different — the PSC controlling managers in most cases stood by their employees and refused to acknowledge the violation.
As a result:
- the company received services of inadequate quality, but was forced to pay in full;
- store managers spent their time resolving conflicts with security companies instead of doing their basic work.
New interaction format
By that time, MODIS retail network had already implemented the MD Audit system, which was actively used to monitor the quality of store operations. They decided to use it to control PSC. Checklists were drawn up, which included the main criteria for the quality of security guards' services. These included a variety of issues, such as compliance with job descriptions, dress code and customer communication rules.
If each checklist item was not fulfilled, a recalculation of the cost of the security company's services for the current period had to be made. If PSC fulfilled all its obligations by 100% and even more, some preferences were envisaged.
This type of communication could theoretically be implemented without using MD Audit. However, then the main problem would remain — the need to prove the fact of violation in front of the security company every time. Our system excluded this moment as follows:
- recording of the violation was confirmed by the photo;
- audit information was immediately sent to the PSC controlling manager, who also had access to the MD Audit system.
After the new format of interaction was developed, negotiations with security companies began. Not everyone agreed to work in this way — such companies had to be replaced. Naturally, all subsequent PSCs received a contract drawn up in accordance with the new format.
It must be said that most of the security companies that agreed to such cooperation had no idea what they would get in the end. Some were so dissatisfied with the real picture of their employees that they stopped cooperating. Only those who worked well or were able to adapt to the new format of interaction remained.
Results of using MD Audit to monitor PSC
- Contracts have been concluded with security companies that provide quality services.
- A transparent interaction mechanism has been established that excludes conflict situations.
- Security costs at retail facilities were reduced by 7.5% due to the fact that payments for services became in line with their quality.
It should be noted that security companies themselves have also benefited from such interaction, as they have at their disposal a tool for monitoring the quality of work of their employees. With this information, they were able to renew their staff and improve the quality of their services.