Concept of Retailer's Shrink, reasons, solutions, the technology around it, and pricing for applications. This presentation was made for an interview.

1. RETAILER’S SHRINK Shivam Bansal

2. # 2
[1] Source: Investopedia
Retailer’s shrink accounts for 3% in the $4.1tn industry, worldwide
Definitions and Implications [1]
noun [no object]
• the difference
between physical
inventory and
booked inventory
Retailer’s Shrink
Broad Approach Scenario Analysis Resource & Planning
Employee
Theft
Administrati
on
Shop lifting
Personal
use
Reselling
Personal
use
Theft
Damage
Accounting
error
Pricing Basis
Note: Self-developed framework for the purpose of this case study.
Concept
50%
35%
15%
85%

3. Conception
- Exhibit of products
- In store sales
representatives
- Problem of theft
- Limited manpower
- Limited funds
Conception Resources and
Planning
- Surveillance cameras
- RFID tags
- POS machines and
interface
- Employees
- Operational space
Implementation
- Store by store roll-out
- Periodical measures
- Periodical advancements
- Feedback
There is a need to devise practical and affordable mechanisms to combat physical theft / shoplifting
at a retail store, given they will continue to have manpower constraints.
Broad Approach
Source: Nihilent’s Holistic Design of Digital Innovation Framework
# 3Broad Approach Scenario Analysis Resource & Planning Pricing BasisConcept
Resources and Planning Implementation

4. .
Thieves:
Remain secluded
Employees:
Distracted from helping a
customer
Customer
Journey
Entering the
store
Exploring
the exhibits
Spending
time (time
for theft)
Choosing
the item
Checkout
Scenario analysis
Constraints
Affordabilit
y
Manpow
er
• Inexpensive solution
• Theft loss reduction
• To not increase the man power
• Strategic placement
# 4Broad Approach Scenario Analysis Resource & Planning Pricing BasisConcept

5. Operations
Technology
Psychology
Need for
exploration
Lack of innovation
Optimizatio
n
Reduced
engagement
Ignorance
Lack of training
Distraction
Digital
absence
Incomplete use
Note: Self-developed framework for the purpose of this case study.
Resource planning
Three part solution
Bringing about changes in
three verticals on the
left(Technology,
Psychology and
Operations), the problem
can be tackled with cost
effectivity and operational
progress.
In brief…
How can this be changed?
# 5Broad Approach Scenario Analysis Resource & Planning Pricing BasisConcept
3 Part
solution

6. Resource planning
Employee Training Reflection mirrors & Vicinity
 Behavioral understanding sessions
 Employee motivation sessions
 Employee feedback
 Periodical (Optional) updates
 Interactive sessions with professionals
 Concave mirrors installation
 Few strategic points to watch every corner
 Reduced manpower to be used at POS
 Fear of being caught
 More employees at POS
 Popular items to be kept in visible vicinity
 Efficiency due to shelf rearrangement
 Opportunity to offer more services
Operational Efficiency
You don’t build a business. You
build people. And then people
build the business.
~Zig Ziglar
# 6Broad Approach Scenario Analysis Resource & Planning Pricing BasisConcept

7. Camera
RFID
POS
Integration
Useful resource
Useful for
analysis
Complete
surveillance
Needs updating
Inventory control
High-tech
Inventory Control
Buzzer alert
Saves manpower
Resource planning
Cameras
Technology
 Install cameras to cover up the grey areas
 Detailed analysis of ‘Hot Times’ footages
 Understand the thief behavior
Radio Frequency Identification
 Real-time count on every shelf/display
 Buzzer alert at the door
 Timely stock order according to need
Point Of Sale integration
 Efficient accountancy of sales
 Ease of returns and exchange
 Higher technology
# 7Broad Approach Scenario Analysis Resource & Planning Pricing BasisConcept
Note: Self-developed framework for the purpose of this case study.

8. # 8Broad Approach Scenario Analysis Resource & Planning Pricing BasisConcept
Radio Frequency Identification
World war era concept
Tag
Antenna
Reader
Station
RFID
• technology that uses radio-frequency waves to transfer data
between a reader and a movable item to identify, categorized
Note: Self-developed framework for the purpose of
this case study.

9. # 9
Percentage of reduced loss and
reduced insurance fees
Number of employees trained
& seminars
 Charges for behavioral and loyalty training
 Charges for interactive sessions
Operational efficiency
achieved
 Charges for the increased efficiency
 Turnover can be used as a basis
 Can be considered as a consultancy fee
 Percent based quarterly fee
Pricing Basis
Broad Approach Scenario Analysis Resource & Planning Pricing BasisConcept