Dealers with video surveillance cameras can integrate them into the EAS system so that each time there’s an alarm, a camera is activated to get a visual of the person leaving the store.
Another option is RFID (radio frequency identification). By attaching RFID tags to inventory, users can track it from manufacturer to sales counter, and all points in between, allowing users to detect theft earlier—whether en route or in the store.
“As we’re using it today, RFID is just another form of automated data collection to get a better visual on inventory as it traverses the supply chain,” notes Chris Kelley, director of RFID business development for Intermec, developers of supply chain solutions, including wired and wireless automated data collection. “Users can actually introduce more points of capture along the supply chain than they can with a bar code.”
Unfortunately, most RFID technology is still priced beyond the pocketbooks of all but the largest retailers. “Lots of companies are still doing inventory and managing the business with pen and paper,” Kelley says. “RFID may not be the right next step for them.” As prices come down, more dealers could be enticed by RFID’s ability to track inventory more effectively and efficiently.
POS = Point of Stealing? Theft by employees at the sales counter is often less obvious to the naked eye than a customer pocketing a drill bit in the tool aisle. Employees can take money while the drawer is open for a no-cash sale or key in items that weren’t actually purchased and pocket the difference. But using POS software and old-fashioned communication can keep employee theft in check.
“Smaller business owners want to create an atmosphere of family,” notes Louise Casamento, vice president of marketing at Micros Systems. “They become complacent and trusting of their employees and don’t realize how much money is going out the door. It’s little things that add up to large amounts at the end of the day.”
To help identify those “little things,” Micros Systems developed XBR Loss Prevention, an exception-based loss prevention system that users can customize to their particular needs. “When an order is put in or a transaction is placed that falls outside of specific parameters, the software throws a red flag and alerts management so they can go in and determine if a loss is happening,” Casamento explains. “The system manages all of the data from the POS.”
For instance, if there are many voids and no-cash sales, an alert is issued. Or if inventory isn’t matching up to sales, a red flag is raised. “This allows managers the freedom to trust that the system will detect problem employees,” she notes.
Sometimes, flagged transactions are the result of a lack of training. Learning which employees are struggling helps managers know who needs additional instruction or reassignment. If the transactions are the result of bad intent, managers have the evidence necessary to dismiss employees and, if necessary, press charges.
“Once they get rid of one person [who is stealing], the revenue increase is notable,” Casamento says. “Others are afraid they’re going to get caught or lose their jobs.”
