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Smart Device
Technology and the Challenges for Loss Prevention
Submitted by Marc
Smith
Manager, Shortage Control
Sears Holdings Corporation
All major retailers are moving at light speed to bring
smart device technology to the market place. The
challenges for not only retail loss prevention but for
loss prevention solution providers are to be nimble
enough to embrace and accommodate the ever-changing
technology.
Mobile Point of Sale
and Self Checkout – Did the customer really pay for
that?
We may have a new term to ad to the retail loss
prevention dictionary; "Self Sweet -Hearting."
Retailers generally have exception reporting to conduct
investigations of Point-of-Sale (POS) transactions and
dedicated closed circuit television (CCTV) cameras for
review of exception transactions post transaction. These
tools have historically provided the tools that loss
prevention has needed to conduct investigations of POS
theft and fraud. The CCTV tool may be rendered useless
if the camera is fixed.
Is the answer pan tilt zoom (PTZ) cameras? Then comes
the budget challenge. If you do have the camera
technology, you may not have the dedicated payroll to
follow the mobile device around.
Does the technology exist to have the PTZ follow the
device without manual intervention? This is the
challenge for technology providers.
We in Loss Prevention tend to be control freaks.
Relinquishing the PTZ controls to technology will be a
culture change.
How Do We Keep The
Technology in the Building?
Like all technology, the cost of mobile devices will
come down. The need to continually upgrade applications
and software will be an on-going expense that retailers
will have to budget and plan for.
Retailers will need a robust system to ensure the
devices are checked in and out ensuring their employees
are accountable for the devices.
Most retailers are ensuring the devices are "wiped" of
the POS and inventory control applications if the device
is logged on after reported missing. The devices still
have value to the thief, after all who would not want a
new iPad?
Most devices have the ability for GPS tracking, but once
the device is removed from the store is it cost
effective to track the device down for recovery and
criminal arrest?
The answer may be the technology coming to the market
place simultaneously with radio frequency identification
(RFID).
With Self Checkout Who
Removes the Theft Mitigation Device?
For high risk product today, retailers try to maintain a
self-service strategy by using theft mitigation products
such as EAS tags or Spider Wrap. These devices are
typically removed from the product at the POS. Does this
mean that these devices become obsolete?
Perhaps applications can be added that automatically
contact a store employee to remove the device.
Retailers may have to return to the Service model where
high risk product is delivered to the paying customer at
a central location in the store. These locations may
already exist with merchandise pickup areas, service
desks or layaway as this retail tactic regains
popularity.
Has the time for Benefit Denial Technology arrived? The
product would be rendered useless either digitally or
mechanically until the product is paid for. This would
require a complete culture change, training of customers
and employees and an investment in the technology by
retailers.
There are certainly more challenges on the horizon as
technology continues to evolve and is introduced to the
retail market place. Retailers, technology developers
and solution providers with the vision to embrace and
evolve with innovative loss prevention solutions will
reap the rewards. The customer will enjoy having more
options to dictate their shopping experience.
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