Summary: At this year’s RILA Asset Protection conference I witnessed how the loss prevention / asset protection department has begun to recognize the need to expand beyond the traditional role of alarms, locks, and metal detectors. More importantly, the role of the next generation asset protection professional is emerging as a hybrid that can bring together various departments, including operations and merchandising. With a recognized understanding of adding value beyond traditional LP services, next generation AP professionals are leveraging existing and emerging technologies to bring added value to the company, and increase the return on existing investments. As an example, CCTV has been historically used to track and monitor retail criminal behavior. The obvious benefit of having multiple “sets of eyes” recording various parts of the store mitigated the need for additional on-site personnel. However, this technology can now be used to assist with data collection, helping keep track of staffing or merchandising needs and execution. New life can be brought to CCTV as a way to monitor the employees on the sales floor. Ensuring there is enough personnel to service customers for sales floor assistance, or checkout at the point of sales. Furthermore, this video data can be correlated with the number of customers coming through the doors at any given time to determine the optimal staff distribution throughout the day as well as conversion rate by department. Even more intriguing is the blend of the data scientist and detective. Only these next generation data AP professionals have an eye on margin, not just malicious behavior. It was interesting to hear the ways data AP teams are cross correlating information and using analysis, rather than “gut feelings” to identify root causes impacting the financial health of the retailer. With technology that can bridge the gap between information, and execution. Data AP professionals utilize algorithms coupled with business logic to make cost reduction but more important top-line growth a new tool in their arsenal. A key component of this sophisticated tool is to not only bring forth opportunities, but also resolutions of questions and issues that may have otherwise never been asked or brought to the retailers attention. Data AP teams can utilize big data and predictive analytics to draw correlations that will be key to implementing effective process change and ultimately increasing sales and margin. The growth of the new Data AP professional is allowing asset protection to become a profit hub and not just a capital expenditure. Retailers will be able to rely on them for information and not just criminal deterrence, making them invaluable, and not just the “cost of doing business”.
