Security and loss control management in service chains

Operations Managers have management responsibility for the safety and security of the assets under their control.  In the case of service chains, these assets can be extremely valuable.  In the USA a 100 room budget hotel may have cost $7 million to build and a 100 room full-service property $70 million.  The manager therefore has responsibility for the premises, the equipment and furnishings, as well as the consumables within the operation.  Such is the scale of this responsibility, many chains have developed so-called ‘loss control manuals’, especially in the restaurant sector.  Loss control might include such features as loss control audit procedures, incident and communications management, health and safety procedures, risk assessments, opening and closing procedures, and record-keeping procedures.  The major reasons for having effective loss control policies are to:

  • ensure compliance with legislation and regulations
  • reduce losses
  • reduce insurance costs

Evidence suggests that outlets belonging to a chain are most vulnerable at opening and closing times ie when relatively few staff are on duty and when there are no customers. So banks, stores and restaurant operators typically have clear procedures for managing these processes.

Increasingly, organisations are turning to technology to increase the security of their assets.  A typical approach is based around the use of closed circuit television (CCTV) is used not only to monitor security when the outlet is closed, but also when it is being operated.

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This entry was posted in Chap 06 Materials and inventory, Chap 10 Processes and technology, Sector: Entertainment & Sport, Sector: Financial Services, Sector: Hospitality & Tourism, Sector: Public Services & Charities, Sector: Retail and tagged , , , . Bookmark the permalink.

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