Facial recognition, RFID, data mining tools, video analytics are all exciting tools being tested and used in the LP industry. Some are very costly to implement and are sold via an ROI that supports other goals in addition to shortage control.  RFID can be used to reduce shrink and as a means for instant updating of counts in a store. Accurate inventory counts allows replenishment to work at it's highest level.

How do these compare to more "traditional" tools for shortage control?

"Block and Tackle" programs like establishing operational standards and auditing to them, employee training, shoplift prevention tools, awareness programs for associates and managers and incentive programs including cash awards are great examples.

Is it either or, or does one replace the other, or?

During my career I worked for an office supply company. Those were exciting times as this was the birth of the internet and all the supporting companies were being created to capitalize on it. The company followed a very simple shortage mission statement. If you establish and maintain tight operational controls, theft would not impact your shortage number in a large way. Every store was audited every month. The audits included coaching and training to the operational standards. Yes, employee theft and shoplifting, especially ink-jet cartridges were there, but our results were often below .50.

We never had all the tools of technology during those days. Not even EAS was installed until I left after 12 years and yet we were successful in achieving our number.

In my opinion, "block and tackle" works the best. Focus on the basics everyday through your employees and managers and use technology when it can be combined with another goal.

Enjoy the week,

Steve

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