In 2007, internal shrinkage cost Europe’s retailers euro 8,389 million and has become one of the largest threats to retailers, accounting for almost 44.6 per cent of all stock losses.
“Although staff fraud is now widely recognised as a concern, our recent work has shown that even greater losses are caused by error and process weakness or abuse; some aspects of which are not always measured as part of stock loss,” explained David Snocken, Commercial director of IDM Software.
IDM’s new LossManager system allows retailers to analyse data across their entire estate. It integrates data from multiple sources (including systems such as EPoS, internal audit, CCTV, EAS, Supply-chain and RFID) and makes evidence visibile so that a retailer can very quickly get to grips with the bigger picture of internal loss and inefficient operations.
Experts in data mining, the founders of IDM have spent the last 17 years pioneering operational data mining using ‘Train of thought’ and ‘Link node analysis’ techniques.