1. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Chapter 10: Merchandise Distribution and Loss Prevention

2. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Merchandise Distribution Methods Centralized Receiving Regional Receiving Individual Store Receiving

3. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Centralized Receiving Chosen because: Allows more space for merchandise on the selling floor Better control of goods Cost reduction

4. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Quick Response Inventory Systems Electronic Data Interchange Vendor Managed Inventory

5. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Receiving Equipment Packaged merchandise transporters Stationary tables Conveyor systems

6. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Merchandise Checking Procedures Quantity checking  Direct checks  Blind checks  Semi blind checks Quality checking

7. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Marking Merchandise State law may require individual pricing Tags feature pertinent information Consumers can determine affordability Coded information allows customer response evaluation by retailer Allows use of EDI and VMI systems Coded information allows evaluation of TO, OTB, and other inventory requirements

8. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Marking Procedures Hand marking Handheld equipment Computerized tags

9. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Remarking Merchandise Merchandise is out of season Only a few pieces in a style remain in inventory Merchandise did not sell as well Poor color selection Only a few sizes remain

10. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Loss Prevention Deterrents Electronic Article Surveillance Systems Electromagnetic Systems Acousto-Magnetic System Video Surveillance Systems Merchandise Anchoring Magnifying Mirrors Try-on Room Control

11. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Internal Theft Deterrents Screening of Applicants Checking references Drug testing Psychological testing Merchandise control ‘Shopping’ the sales associate Recognition programs Offender prosecution

12. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Fraud Prevention Be wary of customers unwilling to provide full details or PO Box addresses Be aware of remote address orders Be aware of orders sent out of borders Be aware of out-of-norm orders Be aware of middle of the night purchases

13. Diamond: Fashion Retailing: A Multi-Channel Approach. (C) 2006 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved Trends in Merchandise Distribution and Loss Prevention Expanded use of technology Increased use of computerized tags Updating of EAS systems Applicant screening Fraud prevention