Retail businesses thrive in sales volume — hundreds of transactions occur each day while the value per transaction is relatively low. Store personnel leverage on these, prompting them to believe that it would be hard to detect and easy to get away with their “petty” fraudulent acts. While these types of fraud might be trivial per transaction, it can easily accumulate to large sums over time. More importantly, you wouldn’t want to employ dishonest and corrupt people who can certainly influence the rest of your organization.
Small to medium business owners would soon realize it’s time to look at tell-tale signs of fraud but would resort to traditional methods or purchase of basic, primitive point-of-sale (POS) systems, thinking that these would save them money. Regrettably, here are key limitations:
- Manual methods result to lacking and untimely information hence, inspection or audit has often been a matter of experience that are usually outdated and not concentrated on detecting actual red flags.
- Obsolete technology like basic POS cannot generate rich and intelligent management exception flags.
- Inadequate and manual control activities increase opportunities for employees to abuse refunds, returns, and discounts.
- As traditional techniques tend to be historical than predictive, there is absence of continuous monitoring that can help generate insights to be acted upon.
- Because manual methods also result to unreliable sales and inventory data, theft, robbery, and lost sales can remain undetected for long periods.
On the other hand, the following benefits for investing or upgrading to an intelligent POS solution will far outweigh its costs:
- Reduction of manual intervention, resulting to increased data integrity
- Deployment of pervasive and automated controls
- Proactive detection of control lapses through regular exception reports, alerting management to unusual activities
By implementing the right solution to leverage the rich data environment that is common in retail businesses (from hourly transaction activities to employee shift records), specific areas of fraud exposures can be identified, and appropriate measures can be deployed.
How can we help? Accelerating your analytics journey is the core objective of RAPID INSIGHTS ZONE — premium analytics professional services, made available to all business types and sizes. Our solutions and services (point-of-sale and analytics) will help you KNOW MORE (about fraud, among others), so you have MORE TIME and resources to focus on growth. If you are scouting for systems that will help you achieve real benefits, don’t just assess and validate the features. Seek the background and kinds of people behind the development and delivery of the systems. When you are ready to accelerate your analytics journey and inevitable business transformation, contact us!