Mining for Gold: Loss Prevention Exception Reporting Effectively
Your point-of-sale (POS) holds more than just cash and credit card receipts. It holds a gold mine of data. With effective loss prevention exception reporting, your POS reports can alert you to employee theft and anomalies in KPIs (key performance indicators).
Conducting an Exception Report Audit
Data mining a KPI exception report is as simple as looking for anomalies and patterns of loss. When looking over trending data, pay close attention to the loss prevention KPI examples listed below.
The first thing you need to calculate is a baseline (or benchmark) for acceptable behavior.
For example, what is the average number of refunds your cashiers process in a shift? Once you have determined the benchmark, it will be simple to see when and if any cashiers go dramatically above or below the standard benchmark.
Ask yourself what else stands out? How frequently is the anomaly occurring? Who is under suspicion? Is the anomaly increasing or decreasing in frequency?
Your assessment will change over time as you begin to watch specific cashiers, monitor suspicious activity, and improve internal errors through training.
KPI Reports Worth Watching
- No Sales
- Drawer opens
- Promotions or coupon codes
- Suspended transactions
- Over rings / under rings
- Employee purchases and discounts
Advantages of Loss Prevention Exception Reporting
The level of detail and extra work put into monitoring KPI exception reports may seem tedious. But when you consider the profits you can protect and recover, the effort is worth it.
With time and effort, you can:
- Resolve internal theft, thereby increasing profits
- Find and address loss issues sooner
- Multiply the impact of your limited loss prevention time
Rely On Loss Prevention Experts
One of the most precious resources is your time. Often retailers simply don’t have the time to create and monitor POS exceptions. Relying on DIGIOP software solutions and loss prevention auditing services is ab effective way to address your loss and free your time. Let our experts help you create a plan to curb loss and increase profitability.
Jim Close is the Director of Loss Prevention at DIGIOP, bringing over 25 years of experience in all facets of Loss Prevention.