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A hidden gem – SAP Loss Prevention Analytics for Retail

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).

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