How can you use video surveillance to improve shrinkage measurement?

Shrinkage, or the loss of inventory due to theft, damage, or error, is a major challenge for retail operations. According to the National Retail Federation, shrinkage cost U.S. retailers $61.7 billion in 2019. One way to reduce shrinkage and improve profitability is to use video surveillance to measure and analyze inventory loss. In this article, you will learn how video surveillance can help you identify the sources, patterns, and trends of shrinkage, and how to use this data to implement effective solutions.

1 Why video surveillance?

Video surveillance is not only a deterrent for external and internal theft, but also a valuable tool for measuring shrinkage. By using cameras and software to monitor and record inventory movement, you can track when, where, and how shrinkage occurs. You can also use video analytics to measure key performance indicators (KPIs) such as sales, conversion rates, and customer behavior. This way, you can gain insights into the impact of shrinkage on your retail operation and identify opportunities for improvement.

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Ram Kumar Rajangam CFE, PMP®, GRCA, CFI, LPM

Loss Prevention | Audit | Investigation | Risk Management | Reviewing GRC | Designing Internal Controls | Asset Protection | Shrinkage&Damage Reduction | Process&Compliance | Writing SOP |Training | Business Excellence
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We can use video surveillance because it allows us to keep a close eye on businesses. Will help to catch theft, shoplifting, Internal theft, other suspicious activities & SOP non compliance. Video footage gives us solid evidence during the investigation 1, Use smart video software to automatically detect suspicious behaviors 2, Connect video surveillance with our checkout systems to match up what's happening on camera with what's happening at the register. 3, Keep an eye on our employees to make sure they're following the rules &not stealing from us 4, Teach our staff to recognize shady behavior&report theft cases video surveillance gives us a powerful way to understand, analyze& reduce shrinkage by showing us what's happening in real time

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Yallappa T

Manager/Internal Audit/Inventory Audit/Process Audit/Loss Prevention/Inventory analyst/Fraud analyst. | Ex Future Group | Ex CCD
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Video surveillance not only helps in finding thefts but also aids in checking whether processes are running properly. It allows for the remote review of customer handling, employee behavior, grooming of store employees, store processes, and preventing false claims. These are major Key Performance Indicators (KPIs) that can be reviewed remotely.

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Om Prakash

Security Loss Prevention at bigbasket.com | EX SLP- Reliance Jio Mart E COM ,| Ex-Oppo, |- Ex-Store manager Spice hotspot,| Ex- ICICI, |Ex- Store manager Reliance digital
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Video surveillance is crucial for improving shrinkage measurement in retail. High-resolution cameras strategically placed at entrances and key areas help identify theft incidents. Integrating video analytics, POS systems, and real-time alerts enhances proactive monitoring and loss prevention efforts

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2 How to use video surveillance to measure shrinkage

To use video surveillance to measure shrinkage, you need to integrate your cameras with your point-of-sale (POS) system and your inventory management system. This will allow you to compare the actual sales and inventory data with the video footage of the transactions and the stock levels. You can then use software to analyze the discrepancies and detect the causes of shrinkage, such as shoplifting, employee theft, cashier errors, or damaged goods. You can also use software to generate reports and alerts that help you monitor and manage shrinkage.

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Faran Farooqi

Excellence in Retail Operations | Security, and Inventory Management Expert
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Ensure shrinkage reduction through video surveillance with a comprehensive CCTV network at stores and central locations like the Head Office (HO). Provide adequate training for internal security staff to effectively handle shrinkage-related incidents. Recognize that both customers and staff can contribute to product theft, necessitating vigilance towards both groups. Implement a strategy where internal security staff avoid wearing uniforms to prevent easy identification by customers Emphasize continuous monitoring by CCTV operators to detect abnormal activities such as theft in stores Prioritize staff training to enhance their ability to address and prevent incidents related to shrinkage. Establish a seamless network of CCTV coverage.

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Humza Shah

Manager Supply chain
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Using video surveillance for shrinkage measurement involves a strategic approach to monitor and mitigate inventory losses in retail or business settings. Businesses should strategically place high resolution cameras in key areas, such as entrances, exits and cash registers to capture clear images. Real time monitoring and video analytics software help identify suspicious activities while integration with POS systems cross references transactions with video footage. Employee training on surveillance awareness, regular system audits and compliance with privacy laws are essential. Video footage aids in incident investigations promoting a secure environment through continuous improvement of surveillance measures.

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3 How to use video surveillance to analyze shrinkage

To use video surveillance to analyze shrinkage, you need to use software that can provide you with actionable insights and recommendations. For example, you can use software that can segment your shrinkage by category, location, time, or employee. This will help you identify the areas, products, or personnel that are most prone to shrinkage and the reasons behind it. You can also use software that can correlate your shrinkage with other factors, such as customer traffic, staff performance, or marketing campaigns. This will help you understand the effects of shrinkage on your retail operation and the potential solutions.

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4 How to use video surveillance to improve shrinkage

To use video surveillance to improve shrinkage, you need to use the data and insights you have gathered to implement effective strategies and policies. For example, you can use video surveillance to train and motivate your staff, by rewarding them for preventing or reducing shrinkage, or by holding them accountable for their actions. You can also use video surveillance to optimize your store layout, merchandising, and security, by placing cameras and sensors in strategic locations, by displaying high-risk items in visible or locked areas, or by using tags and alarms to prevent theft. You can also use video surveillance to enhance your customer service, by greeting and engaging customers, by offering assistance and suggestions, or by providing a fast and friendly checkout process.

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5 How to use video surveillance to evaluate shrinkage

To use video surveillance to evaluate shrinkage, you need to use software that can measure and track your progress and performance. For example, you can use software that can compare your shrinkage before and after implementing your solutions, and show you the results and the return on investment (ROI). You can also use software that can benchmark your shrinkage against industry standards and best practices, and show you the gaps and the opportunities. You can also use software that can provide you with feedback and suggestions, and help you adjust and improve your solutions.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use video surveillance to improve shrinkage measurement?

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1 Why video surveillance?

2 How to use video surveillance to measure shrinkage

3 How to use video surveillance to analyze shrinkage

4 How to use video surveillance to improve shrinkage

5 How to use video surveillance to evaluate shrinkage

6 Here’s what else to consider

Retail Operations

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