developing and applying constructive analytical intelligence for successful loss prevention

Developing and Applying Constructive Analytical Intelligence

for Successful Loss Prevention

Presented By

King Rogers, CEOThe King Rogers Group LLC

Definitions

• Data Analysis Intelligence

Information For Action

• Video analytics:– Video = Data– Software created to make video more intelligent

(i.e.: object left behind, people counting and tracking, people classification [gender, age, etc.], facial recognition, etc.)

IntelligenceAnalysisData

Definitions (Cont’d.)

• Intelligence Analysts:– Tasked with developing and responding to data

based business intelligence (Big Data) along with many other assignments tossed into their laps by the boss

– 3.7 different roles according to The Data Warehouse Institute

– Many business analysts end up reporting into IT (kiss them goodbye)

– Missing hero potential for Loss Prevention

Industry Trends

• Security intelligence• Part-time workers• Social media - Brand protection• Video analytics beyond surveillance• Doing more with less• VSaaS• VAaaS (EBR as a Service)

Business Challenges• Budgets

– R.O.I.• Responsibility for all the negative line items on the Profit

& Loss statement– Food costs as a percent to sales– P.O.S. losses

• Credit fraud• Cash shortages

– Cash-in-transit losses– Shrink– GL/WC– Robberies

Business Challenges (Cont’d.)

• Part-Time Workers– Pre-employment Screening– On-Boarding– Awareness Programs– Social Media Issues (Branding)

• Technology– Video technology selection and deployment– EBR Software– Network Connectivity

• A seven year management employee issue was detected, investigated and resolved within two weeks after starting disciplined audit service. Value: $400 a week = about $20,000 per year.

• Manager - Cleared Items Report = annualized loss of $5215.

• Manager – Small Transaction Report = annualized loss of $3671.

Business Case Examples

Business Case Examples (Cont’d)

• Manager – Reopened Checks Report = annualized loss of $6546.

• Manager - $0 Subtotal Report = annualized loss of $6183.

• Misunderstood discount policy = almost $5000 annualized in one location.

• POS System error created profit erosion to a small chain of $102,000 annualized.

Business Case Examples (Cont’d)

• Video-based auditing enabling detection of using unauthorized meal discounting (sweethearting) is one of the most frequently detected causes of profit erosion.

• Double discounting quarterly improvement for consecutive quarters was 30% to 36% more in audited restaurants vs. unaudited units.

Business Case Examples (Cont’d)

• Social Media audits, detection examples:

Summary

• Rules-based exception software• Maximizing value from video• Analysts: in-house vs. outsourced• Total Cost of Loss Control Ownership

(TCOLCO)

• Why?

The Why

• P & L negative line item ownership• Brand protection• Profit enhancement

• The five tactics of successful security/loss prevention……………

Tactics

Recovery Detection

InvestigationResolution

Prevention

Thank You!

King Rogers

(612) 840-2201king@kingrogers.com