“Without any risk, there is no reward.” -Unknown
While business people must be prepared to assume risk when undertaking a new endeavor, some ventures are inherently more risky than others. Take retail for example, with high volumes of inventory, presumed loss incursion, shifting consumer demands, and the need for no small amount of luck, retail is notorious for bleeding capital. Despite these risks, the rewards of successful retail endeavors are enticing enough to lure entrepreneurs to try their hand.
In order to mitigate controllable risks, some retailers are implementing a number of strategies to reduce their total loss – particularly by leveraging big data and analytics. Many were quick to see the link between that level of visibility and profit savings. A good example is an analytics engine that can identify when a particular item is out of stock or flag irregularities in inventory delivery. In those and countless other scenarios, the retailer is able to tap into their data to recognize a cost-saving measure.
Understanding all of this, you would think that every retailer would have a Loss Prevention strategy that has significantly reduced their loss, right? Well, not exactly. Retailers are adopting analytics for their LP, but many are finding that most tools do not have the detailed reporting and finding capabilities necessary to actually turn the data into actionable insights. Rather than investing in a technology to increase total profit, they’re actually taking a step in the wrong direction, finding only low hanging fruits around fraud.
So what can retailers do to implement a strategy that works? In this article featured in LPM Insider, I discuss the power of prescriptive analytics and its relationship with loss prevention. Read the full piece, here.
The post I’m So Sorry For Your Loss (Prevention Strategy) appeared first on Profitect.
