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Losing Money at the
Front-End
A leading specialty retailer was concerned
about losses being incurred at the front-end
of their stores. Although the retailer was
aware of inconsistencies related to cash
register transactions, management did not
know the extent and source of the problems.
Sophelle's
Assessment
Sophelle conducted a complete front-end
audit of all store systems and procedures,
including:
- Sales
- Returns
- Exchanges
- Tendering
- Discounting
- Cash Management
- Taxation
- Employee Training
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Challenge
- Undetected theft from store
personnel was resulting in
significant front-end losses for a
retailer.
Solution - Chain-wide improvements in software,
register balancing and coupon
tracking.
Result
- Dramatically reduced losses and
measurable ROI. |
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Sophelle identified several significant data
and system integrity issues. In particular,
store coupons posed a major problem.
Sophelle found that coupons were not
properly tracked, allowing for undetectable
cash register theft by store managers and
associates. In fact, upon review of
Sophelle's findings, a senior management
official stated, "No one in the company was
getting richer than the individual store
managers."
Solution
Sophelle recommended specific enhancements
to the point-of-sale software and changes to
the register balancing processes to achieve
consistency throughout the chain's stores.
Store manages and associates were given
specific protocols for all transactions, and
a tracking process for coupons ensured that
theft could not go undetected.
Result
With the introduction of the system and
process enhancements, front-end losses were
dramatically reduced. In fact, within two
months, they were virtually eliminated. In
addition, the coupon tracking system now
provides more accurate promotional data on
marketing effectiveness, further enhancing
the company's ability to profit. |
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