It’s almost impossible to tell where shrink is coming from without a data platform capable of tracking and revealing its sources. The other challenge comes in reporting. While spreadsheets may work well enough for logging data, they tend to fall short when analyzing information to reveal trends that staff can act on.
As with most other store technologies, the end goal of any loss prevention system is putting actionable information into someone’s hands. At Wisconsin-based Festival Foods, that process is powered by proprietary analytics and reporting system, which automatically compiles weekly shrink reports and distributes them to the appropriate team members.
“We’ve automated shrink reporting to ensure each department leader has a recap of last week’s shrink report each Monday morning. Talk about putting data right into the experts’ hands. Automating that process has been a huge win for us,” said Festival Foods Asset Protection Profit Improvement Manager Chad Knutson.
Luckily, grocers don’t need their own IT development team to put automated analytics and reporting in their stores. Two such systems in particular have proven effective at demystifying the root causes of shrink throughout the store while wrapping that information up into clear and concise reports.
Profitect is an early-warning shrink detection system that alerts store staff to potential issues on the shelf while using machine learning to turn what would otherwise be “abnormalities” into clear and defined causes of shrink.
When a popular product stops selling, the system prompts store personnel to confirm that the product is on the shelf and not in the backroom. If an issue is found, problematic behaviors can be tagged to certain causes, enabling multi-location grocers to identify instances of non-compliance, fraud, or other possible root causes of shrinkage from store to store.
From a company perspective, Profitect helps identify which stores are at risk for noncompliance based on KPIs with weighted ranking, and automatically identifies underperforming stores that need additional training. When combined with its shrink prediction capabilities, systems like this can reduce cycle counts while highlighting the areas in specific stores that need attention.
ProfitTrax is a profit improvement system for grocers and retailers that pulls together disparate data sources including daily POS activity, daily shrink loss, inventory productivity, daily OOS, lost sales by item, and all related historical patterns and trends.
This data is then analyzed to create actionable daily and/or weekly reports for operators at all levels, summarizing their performance and identifying opportunities to improve––a great tool for grocers in need of something more powerful and useful than standard spreadsheets or paper logs.
While some grocers go so far as to create proprietary software to keep team members on the same page when it comes to loss prevention, Profitect and Profittrax offer grocers two solutions for keeping a closer eye on loss and loss prevention.
This post is excerpted from The 10 Loss Prevention/ Asset Protection Technologies No Successful Grocer Can Go Without, an eGuide for grocers.