Loss prevention is used to describe a number of methods used to reduce the amount of all losses and shrinkage. Each of those methods is a part of the total “Loss Prevention Cost” a retailer has to pay in order to maintain their program. Learn how RadiusPoint managed a retailer’s loss prevention and decreased their false alarm costs by 95%.
A national retailer with over 10,000 locations was being charged for multiple false alarms at the location level. Typically, the alarm permit fee is $25.00 per year. However, the District Manager wasn’t aware they did not have a permit on ﬁle. Without the permit, the fees ranged from $100.00 to $500.00 each time the city or county police responded to an alarm.
Another issue involved the CCTV equipment that each store used on a daily basis. The equipment had set warranty dates and speciﬁc hourly rates for install costs. Because the retailer had no way to capture the warranty data and dates of install for each piece of equipment, it resulted in some billing situations that were not at the contracted rates.
RadiusPoint began an immediate investigation for loss prevention into the False Alarm billing and identiﬁed those locations that did not have a permit from the police department. Additionally, the permit information with contact information, annual costs and expiration dates were all entered into RadiusPoint’s proprietary software ExpenseLogic™. This eliminated the issue of non-permit fees since RadiusPoint could notify the District Manager to update his permit before the permit’s expiration.
Additionally, utilizing RadiusPoint’s invoice processing services and software resulted in effective management of the contracts for the various warranty and labor costs. It also provided an asset database that provided the complete inventory of the cameras and other CCTV equipment used for security. This method loss prevention allowed us to execute the investigation thoroughly.
RadiusPoint’s research and work in the area of False Alarms during the ﬁrst six (6) month period decreased the cost by $66,000 or 95%. False Alarms can spell disaster for a retailer, especially when repeated or occurring on high-sale days. But with teams stretched thin, keeping track of every invoice can be a tall order. RadiusPoint effectively manages loss prevention for clients in a variety of industries.