Q:
How do you reduce losses?
A:
LP Sentinel solution for reducing fraud,
losses and non-compliance is based on
several factors:
a.
Coverage:
LP
Sentinel
allows
the
coverage
of
all
segments
of
the
retail
and
supply
chain,
including
segments
which
are
not
covered
by
existing
control
tools.
In
areas
that
are
already
being
monitored,
LP
Sentinel
can
enhance
the
control
capacity
to
100%
of
transactions,
instead
of
sample-checks
and
random-audits.
By
constantly
monitoring
loopholes,
the
efforts
of
blocking
them
using
process
or
system
change
are
saved,
allowing
costly
resources
to
be
allocated
to
higher
priority
tasks.
b.
Detection:
Early
detection
of
loss
generation
and
fraudulent
activity
lead
to
the
initiation
of
an
investigation,
preventive
action
and,
where
relevant,
training.
All
contribute
to
the
successful
reduction
of
losses.
c.
Consistency:
LP
Sentinel
is
constantly
monitoring
the
recurrence
of
known
security
incidents,
involving
similar
patterns,
and
searching
for
these
patterns
in
other
operational
processes,
areas
or
stores.
Thus,
the
benefits
of
the
organization's
accumulated
knowledge
and
experience
are
maximized
(As
opposed
to a
non
–
automated
LP,
in
which
an
isolated
security
incident
might
be
detected,
investigated
and
closed).
d.
Deterrence:
Structured
communication
of
the
system's
existence,
capabilities
and
results
(awareness
campaigns,
newsletters,
training,
etc.),
along
with
implementation
by
loss
prevention
personnel
generates
substantial
deterrence
impact
at
all
levels,
preventing
historical
losses
from
recurring,
and
new
ones
from
being
generated.
Q:
Why should I contract you? Why shouldn't I
ask my IT team to develop a similar
solution?
A:
The purchase of LP Sentinel offers several
advantages over the independent development
of loss prevention software that is limited
to the client’s technological development
capabilities:
a.
Structured
solution:
The
software
which
we
have
developed
is a
powerful
fraud
detection
engine
with
very
high
processing
power,
processing
millions
of
transactions.
Any
internally
developed
solution
will
not
be
able
to
meet
its
processing
power
and
the
advanced
administration
tools
(due
to
cost
benefit
considerations).
b.
Time saved:
The
activation
of
our
software,
models,
fraud
pattern
database
and
experience
saves
the
client
the
time
he
would
have
had
to
invest
in
development,
experimentation
and
possibly
fixing
errors.
Thus,
the
results
are
attained
quicker,
at a
lower
risk
for
the
client.
c.
Preservation of client prioritization: -
The
primary
role
of a
retail
organization
is
to
sell.
Management
attention
must
remain
focused
on
this
aspect.
Profitect
enables
the
client
to
continue
focusing
on
his
goals,
while
the
LP
Sentinel
concentrates
on
decreasing
losses,
and
involves
management
levels
in
the
activity
on
the
basis
of
control
and
management
tools
prepared
specifically
for
this
purpose.
Q: Will the solution disrupt sales?
A:
No. The implementation of LP Sentinel is
conducted with full awareness of the
client’s main goals, the first of which is
to increase sales.
It is not our intention, nor does our method
contain elements that might negatively
impact on sales. Our advantage is that we
point out high-risk areas, products,
processes and employees, allowing the client
to focus his resources there, and at the
same time, initiate preventive measures.
In the event of the slightest concern that
changes might impair sales, they will first
be examined in pilots prior to overall
implementation.
Q:
What is the loss reduction rate?
A:
The loss reduction rate varies from
client to client, and is affected by many
factors: The product mix (perishables as
opposed to non-perishables), the types of
problems – the relative contribution of each
of the loss generators, the quality of the
information systems and data, management
quality, environmental factors such as the
crime level or the existence of a secondary
market for the client’s products, etc.
Q:
Does the project focus on the stores?
A:
The stores are one of the important focal
points where losses are generated, and
therefore are monitored by a central module
of LP Sentinel.
However, a significant part of the loss
causes are not located at the store level.
Therefore, LP Sentinel will cover
other areas, some of which are the
following:
a.
The
supply
chain:
Ordering,
receiving,
transportation,
depots,
DC
b. Suppliers
/
vendors:
From
losses
at
the
level
of
transporters
to
the
stores;
supply
errors
resulting
from
collusion
with
employees;
and
vendor
fraud.
c.
Buying
/
commercial
transactions:
From
agreements
with
suppliers
to
the
management
of
promoters;
returns;
write
offs;
operational
damage
and
POS
monitoring.
d.
HR:
Time
theft,
salaries,
benefits,
etc.
e. Stock
management
systems
–
From
establishing
stock
levels
to
stocktaking
and
stock
adjustments.
Q: What is the implementation method?
A:
Following is a diagram of a typical LP
Sentinel implementation project:
Q: When will we see the first results?
A:
We at Profitect believe that achievements
must be proven in the short-term. Therefore,
we implement Quick Wins software modules
already during the initial stages of our
work. We are convinced that achievements
enable the creation of a positive momentum
and support the project team (both at our
side and within the client’s team); in
certain circumstances, they even create cash
flow.
