Protecting one’s profit and significantly reducing losses. An achievement which can be reached thanks to sophisticated tools analyzing register transactions and stock movements, identifying possible anomalies, fraud, and crimes in these flows. An objective achieved in a short amount of time thanks to Profit Protection.
The burden of fraud in commerce
Crimes and irregularities are a phenomenon that has been growing for years now, common to all companies operating in Retail. Based on data released last summer by Largo Consumo, it is estimated that losses due to fraud amount to an average of 1.46% of sales in the large-scale retail sector in Europe. Approximately 46% of these losses could be attributable to causes internal to the companies themselves: more than half of them (25%) taking place when the items are paid.
This trend’s gradual development is well visible in a study that was carried out in America. The “National Retail Security Survey”, conducted annually by the University of Florida in collaboration with the National Retail Federation, is significant in this regard. In 2017, the average reduction in income was estimated at 1.44% for retailers, up compared to the previous 1.38%: a figure that had been rather constant since 2014.
Inventory differences: the warning for revenue losses
A study released in June 2020 by Crime&tech, a spin-off of the Università Cattolica del Sacro Cuore, allows us, instead, to go into specific detail for the conditions in Italy. The research took into consideration both a survey aimed at 140 brands corresponding to more than 26,000 stores, as well as thousands of news items appearing over the media over a two-year period. The first part of the survey, dedicated to inventory differences, shows some very interesting information.
Among the causes for inventory differences cited by the Retail companies, administrative and accounting errors take first place with 100% of responses: at the same level as external theft and with a much higher percentage than internal theft (71.8%) and scraps and damaged goods (57.9%). In any case, there are differences from industry to industry: reporting mainly an increase in losses are precisely Luxury brands.
The Bizeta solution for Profit Protection
To contrast the situations we have just examined, Bizeta has come up with an innovative response. A tool thanks to which, in a short amount of time, it is possible to obtain a significant reduction in losses, and, therefore, protection for profits, as well as optimization in the selling process.
This s a “Forensic Analysis” solution that, through sophisticated data mining algorithms, analyzes, in detail, transactions taking place at the sales locations. This is to highlight anomalies and irregularities that could turn out to be fraud, crimes, or activities not in line with business procedures. Some examples: suspicious use of manually forced prices, discounting, loyalty-cards, vouchers, as well as returns/exchanges.
The software is extremely efficient and intelligent since it can pinpoint the actual anomalies within a widely identified case system. There is also a possibility for testing the tool’s complete potential in an authentic preliminary project.
Learn more about Bizeta’s solution for Profit Protection!
The commercial staff of Bizeta Retail Solutions is at your complete disposal to give you any information about our solutions.