The retail industry incurs massive losses due to theft, fraud, vandalism, waste, abuse, misconduct, and administrative errors every year. Today, retailers lose a major portion of their sales due to loss instances. Employee theft, shop lifting, and retail fraud account for some of the highest reported losses. In 2013 alone, return fraud amounted to $9.1 billion.
There have been major incidents of data security breaches which compromised the credit and debit card information of millions of customers, and resulted in significant losses for the companies involved. Accident and injury claims are another source of loss. A new proposed rule from OSHA will require retailers to submit details of workplace accidents, injuries, and illnesses. That means that loss prevention will now need to include new processes such as accident/ incident management and claims management. Additionally, employees will need to be better protected.
MetricStream Loss Prevention Management Software Solution
Mere surveillance does not guarantee that retail loss prevention efforts will facilitate the required protection. Nor is it effective to rely on manual, exception-based reporting procedures and point-of-sale analysis. That is a time-consuming approach - it can take several weeks just to audit registers for a single store.
Concerted efforts to contain loss must encompass identification of potential loss areas, along with audits, and data analysis. Exception-based reporting is also important to track loss-harboring incidents, including unauthorized discounts, invalid returns, and cash shortage.
MetricStream Loss Prevention Management Solution enables retailers to adopt a proactive approach towards identifying and managing the risks of loss, as well as managing loss incidents and exceptions, integrating loss management with audit management programs, and facilitating claims management. This approach is in stark contrast to the traditional method of loss prevention, which lays emphasis on the identification and reporting of losses based on exceptions.
The solution enables companies to identify potential loss areas, define and implement controls, test these controls, and monitor the effectiveness of the loss management program through audits. Retail enterprises can establish a sound loss prevention program with the MetricStream solution, and work towards averting losses instead of just reporting them.
MetricStream’s comprehensive solution helps retailers streamline, automate, and monitor important aspects of loss prevention programs. Built on the MetricStream platform, the solution helps improve the efficiency of loss prevention management.
The solution triggers automatic alerts and notifications to the appropriate personnel for investigating untoward incidents, conducting a root cause analysis, reporting the details, and remediating the issue. Powerful dashboards and flexible reporting capabilities provide real-time, granular insights into important loss data, enabling companies to closely track legal activities, risks, and expenses, while proactively identifying opportunities for improvement, cost savings, and loss prevention.
- Helps identify and manage any type of loss incident, including accidents, thefts, shoplifting, and organized retail crime
- Streamlines the management, analysis, and tracking of all accident and injury claims
- Supports pro-active risk management to help retailers identify potential areas of loss
- Provides a centralized repository to store data from various loss prevention programs
- Provides advanced loss reporting and analytics functionalities
- Seamlessly integrates with external systems such as HRMS and civil recovery and restitution systems to extract relevant information about losses
MetricStream solutions are scalable and agile, and will help us harmonize our store audit processes.