Benefits and Differentiators

Profitect's management and team have been involved in more than 40 successful loss reduction programs, with major retailers worldwide, resulting in significant loss reduction. Typical retailers should expect to achieve approximately 15% reduction in the total loss figures, including both known and unknown losses. More aggressive retailers have achieved even greater benefits, ranging typically between 20%-35%.

Most of our retail customers realized that loss reduction contributed significantly to a net profit increase. Others have rerouted the benefits during the same financial year for various purposes, such as allocating parts of it to fund a more aggressive sales approach, by reducing their sales prices. These retailers have witnessed a sales increase as the main benefit of their loss reduction.

The Profitect team will gladly present detailed business cases of such results by request.
The main areas where we delivered bottom line benefits with our fraud, loss and non compliance detection systems – The Profitect Suite - are:

1. Unknown Loss (Shrink): Reduction in the number and value of cases leading to unknown losses, mainly such cases that involve employees and other internal elements. Such cases include cashier fraud, label replacements, "sweethearting", delivery and receiving fraud based on collusion between receivers and drivers or receivers and suppliers, stock management errors, delivery and receiving errors, after-sale service fraud (returns, voids, warranty fraud etc) and more.
       
2. Known Losses (Waste and operational damages): Reduction in cases and value of cases leading to known losses, such as excess ordering, excess supply, wrong management of expiration days, stock build-up, fraudulent waste registration, and more.
     
3. Non-Compliance: reduction of loss generating cases, as result of non compliance. Deliberate non-compliance is reduced also by increasing the deterrence level as most non-compliance cases are detected and alerted. Innocent non-compliance is reduced by using alerts mechanisms which serve as a continuous monitoring/ training tool.  
     
4. Fraud: Detection and reduction of fraud cases which result in financial losses, by alerting on transactions matching our pre-defined fraud patterns. Examples of such are cashier fraud cases related to credit card fraud, employee discount frauds,  refund fraud, merchandise delivery and receiving frauds, fraud in service departments, weighing fraud, expenses, working hours fraud, operational costs, service purchasing fraud, merchandise purchasing fraud, and more.
     
5. Paper Loss: Reduction in cases leading to paper losses, such as pricing errors and manipulations, mark-down errors and manipulations, stock count erros and more.