My stores are suffering major internal losses. How can data mining help to protect my hard-earned profits?
Data mining solutions allow retailers to tackle internal loss by analysing large volumes of data from different sources to extract useful information that reveals patterns and trends. They are a powerful tool in sifting through data quickly and efficiently, identifying key losses caused by margin erosion and improving bottom-line.
IDM Software chief executive Khuram Kirmani says: “The retail environment has become complex and it is inevitable there will be margin erosion at various stages of the supply chain.”
Although retailers have a number of tools available to them to help identify some instances of internal theft, the majority of loss prevention professionals are in need of a solution that is more holistic, both in terms of the data sources it combines and the retail departments that it brings together.
Kirmani says the advantages of data mining lie in the fact it allows retailers to analyse data across their entire estate, integrating information from multiple sources and promoting collaborative working with other retail departments to pinpoint and tackle losses. “It gives full visibility of all related information such as EPoS transaction data and electronic article surveillance tags, and links through to CCTV clips so that loss prevention teams can very quickly get to grips with the bigger picture of internal loss and inefficient operations.” With retailers experiencing ever tough trading conditions, tackling margin erosion issues is one way to help protect profits.