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How DSW Redefined Shrink and EBR to Drive Loss Prevention Success

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How DSW Redefined Shrink and EBR to Drive Loss Prevention Success

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How DSW Redefined Shrink and EBR to Drive Loss Prevention Success

  1. 1. 6/28/2017 1 How DSW Redefined Shrink and EBR to Drive Loss Prevention Success JORDAN RIVCHUN, DSW GUY YEHIAV, Profitect SPONSOR How DSW Redefined Shrink and EBR to Drive Loss Prevention Success
  2. 2. 6/28/2017 2 3 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Introductions JORDAN RIVCHUN Director, Loss Prevention DSW GUY YEHIAV CEO Profitect 4 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Our Journey 508 stores | 43 states 396 leased departments for other retailers Co-owners in Town Shoes of Canada (188 locations) LP Team of 16 (10/16 are in the field) Profitect client since 2014 Inventory module (2014- current) LP, Inventory Control, Quality, and Merchandise Planning and Analytics. Sales Module (May 2017) Brick and Mortar and E-Comm data About DSW
  3. 3. 6/28/2017 3 5 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Traditional EBR vs. Prescriptive Analytics Push vs Pull Big Data vs Actionable Data Eliminate false positives with feedback and machine learning Accountability and task management 6 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Give Me My Data Examples of data we have integrated: While not all data is useful—Feed everything, decide what you need Flexible platform, flexible partner Incident reports LP Assessments Customer Loyalty Data Non-Receipted returns Charge/send declines, in addition to traditional TLOG feeds, etc.
  4. 4. 6/28/2017 4 7 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Key Focus Areas Inventory Data Damages/RTV’s Under/Over Allocated Items Empty Box Loss Analysis Shrink Analytics POS – Sales/E-Comm Shrink Margin – Discounts, coupons, loyalty Operational controls and efficiencies HR Details/Loyalty Details Predictive Shrink Modeling 8 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Change Your users MUST to be willing to change. Gone are the days of digging for data and analysis paralysis Allow the system to detect patterns based on conditions your users set, or automatic User feedback is imperative for system success. Prescribed actions ensure consistency in execution and resolution.
  5. 5. 6/28/2017 5 9 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Result examples A few cases since implementing prescriptive analytics solution for EBR and Inventory: 1 Empty Box Log Reduction 2 Return To Vendor Quality Compliance 3 Discounting/Fraud E-Comm 10 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Timberland Styles w/ High ShrinkTrend Building shrink trend in real time of Timberland boots identified by Profitect Patterns Opportunities. ▪ Further product drilldown in Profitect helped identify that 82% of our Timberland shrink was coming out of Styles (Tan) that only made up 27% of our store on hand inventory ownership. 82% OF SHRINK WAS FROM A STYLE THAT ONLY MADE UP 27% OF STORE ON HAND INVENTORY Created a temporary procedure to move the left boot to the back of the stores due to such high shrink % of sales. ▪ A comp time period after the left boot was pulled saw a 64% reduction in Shrink $ while Inventory ownership and sales were more than double in this Timberland Style.
  6. 6. 6/28/2017 6 11 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information RTV / Damages 12 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information E-Comm / Call Center Fraud PATTERN: CSR’s with lost stolen appeasements and zero dollar orders over 50% of the call center benchmark. CASE IDENTIFIED: ■ $18,500 in Free orders in a 4 week time period ■ Identified in day two of system training / rollout ■ New patterns created based on interview admission ■ Few more cases of this behavior since
  7. 7. 6/28/2017 7 13 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Q&A Discussion ▪ What has been the feedback from your team of moving from a push to pull model? ▪ “If you had one recommendation to someone looking for an EBR solution what would it be?” ▪ What has been the level of adoption from other departments? ▪ What was your IT department’s role and reaction to adopting prescriptive analytics? ▪ What surprised you the most since implementing prescriptive analytics? 14 © Profitect, Inc. 2012-2017, All rights reserved, Confidential Information Questions?

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