In 2010 SAP finalized the first phase of the development of a solution to deal with fraudulent activities at the point-of-sale. SAP Loss Prevention Analytics (LPA) is based on POS Data Management where all sales transactions are immediately ready for analysis and processing. The solution will help Retailers gain control over activities at the cash registers – fraud patterns which can be customized by the customer, once recognized will raise alerts and trigger investigation. The business case is very obvious – reduction of financial losses occurring through POS transactions of 10% is easy to catch.
Yet, analyst reports show that Loss Prevention solutions though well planned and budgeted within the organization are often hard to execute. Poor inventory management and the inability to quantify the losses are major reasons that make proofs of ROI difficult. This might be quite different for SAP – SAP LPA has its roots in POS-Data Management, our sales transaction repository that is tightly integrated into SAP Retail and its perpetual inventory management. Adding in-memory technology POS-DM on Hana will pave the way to “real” real time inventory management.
Back to the current status of SAP LPA, Retail customers increasingly start asking for the solution to complete their POS application. COOP Switzerland was selected to be the first adopter of LPA. They were urgently looking for a replacement of their old component who had been in place for almost 15 years and no longer met the requirements in terms of flexibility, usability and functional richness.
LPA by SAP was the strategic choice and another corner stone within COOP’s SAP portfolio.
The implementation of LPA at COOP was jointly done by SAP expert coach supported by system integrator Retail Solutions who entertained a strong link to the Solution Management and Development.
With this team setting-up the implementation went smoothly and was introduced in all COOP formats. Benefits that the customer announced internally were: flexible configuration, adequate reports allow fast reaction times and drill down right into the issue. The business users were strongly involved in the definition of requirements and prioritization of functionality and were happy with the usability and the intuitiveness of SAP LPA. The main patterns that are used are: voids, no sale and returns.
Feedback to development during the ramp-up phase was instantly realized so a set of additional features is being delivered with the latest release, which is out now:
* Job Scheduling for Patterns
* Type group parameters in Patterns (Basic, Discount)
* Enhancement BADI implementation for Exception Data source
* New Transaction Viewer and Journal Viewer
The fundamantal advantages of the solution come together with POS Datamanagement. Once in place, LPA is only a small effort without additional hardware and diskspace setting this live in 3 to 6 weeks.
LPA is ready for sale and on the official price list after this successful ramp-up. Feel free to contact Oliver Grob (Solution Management) or Stefan Scheppat (Global Hub) or reach out for more information in the jive community (internal).