Magazine Article | February 14, 2017

How Skechers Eases Compliance Audits

By Erin Harris, Editor-In-Chief, Cell & Gene
Follow Me On Twitter @ErinHarris_1

New compliance audit software helps Skechers create, track, and manage compliance issues quickly and effectively.

Skechers USA is a $3 billion dollar global leader in the performance and lifestyle footwear industry. Headquartered in Manhattan Beach, CA, Skechers owns and operates more than 580 retail stores in addition to its thriving e-commerce and global distribution channels. Concerning its brick-and-mortar, company-owned and -operated stores and corporate offices, Leonard Smith, senior director of loss prevention and corporate security at Skechers, has spent nearly 17 years relying on innovation in LP technology to improve the business. Smith tackled case management first, then moved on to audit management. Here’s how.

All internal incidents — from slip-and-falls to employee theft to burglaries — were documented manually in the first years of Skechers. The documentation process was laborious, and there was significant potential for human error. Smith researched case management systems several years ago — at a time when case management systems were not prevalent. He selected LP Software Loss Prevention Management System (LPMS), and Skechers continues to use the solution today for increased productivity, better management of data, greater incident visibility, and follow-through to case resolution. “Using a case management system has allowed us to do our jobs quicker and more efficiently,” explains Smith. “Everything in loss prevention is about time. Paper-laden processes can add months and months to a project. With case management software, we can tackle and resolve issues efficiently.”

Compliance Audits Made Easy
Skechers has been using LPMS successfully for years. In an eff ort to also streamline compliance audits, the company recently implemented LP Software Compliance Auditing Management System (CAMS) to create and manage their audits, questions, and scoring. Loss prevention, district managers, and regional managers use CAMS to develop and edit their audits. The CAMS software solution helps Skechers track its compliance issues. “We use the mapping system, which color codes the U.S. to illustrate the locations with both low and high scores, giving us a quick but detailed snapshot of performance by area,” says Smith. “We use CAMS to identify operational needs, so we can focus on those areas. We also use it to analyze our high-shrink stores.”

Smith explains that Skechers relies on the statistics CAMS produces, which identify the number of thefts and burglaries that have occurred, and what geographical areas have a higher risk of crime. “The statistic reporting and case tracking have helped us tremendously,” says Smith. “We’re able to run a report by district, by region, by store, or by time frame, for example, and CAMS delivers the data we need very quickly.” Indeed, Smith can create as many audits as required within the organization. Automatic emailing to store, district, and regional managers combined with built-in reports provide real-time and historical analysis of audit data. Smith’s team can use the CAMS client on their laptops and mobile devices to perform audits and download the results. This eliminates the need to record scores on spreadsheets or on paper and having someone at corporate compile the results manually. “We’re able to identify serious compliance issues immediately,” says Smith. “I’m even able to convert an older audit into a new audit, execute it, and make changes if necessary.”

Several departments, including HR, have begun to implement CAMS to manage compliance audits. “Our teams use the data from these solutions to find their problem areas and gain a better understanding of the areas that are doing well,” says Smith. “We will continue to see success in both our case management and compliance audits. As we continue to build up our data and compare this year’s statistics to last year’s, we will be able make informed decisions in each location easier and faster.”