While Axis serves customers in many markets, their annual conference focuses on vertical market solutions. Last year their conference focused on transportation solutions and this year they focused on retail applications where 25% of all surveillance cameras are installed.
David Gorman, former leader of global loss prevention at Wal-Mart and currently president and CEO of David Gorman & Associates, presented the importance of network video as a retail shrinkage solution. Gorman exemplified the problem for retailers as shrinkage equals between 1.56% to 1.61% of sales for U.S. retailers and between 20% to 40% of profits or 1.24% of sales for European retailers. And the impact of organized retail crime on shrinkage is increasing to the point that the FBI has funded a new task force to address the problem.
Interesting the growth of shoplifters that consider themselves, “professionals” meaning they make their living shoplifting. In interviews, serial shoplifters have revealed that they feel a minimal chance of being caught. And the statistics bear this out, shoplifters are caught only once per 48 attempts.
Gorman has over 20 years experience as a practitioner and he has worked to help clients address loss prevention in a practical matter to help increase sales, reduce loss and measure ROI.
Among his findings for applying intelligent network video are:
More than 20% of video is not monitored
A humans effectiveness at monitoring degenerates to below acceptable levels after 20 minutes
Reduces time and makes information easily accessible for analysis
Analytics allow for real-time alerts to suspicious behavior or thefts
Merchandising intelligence can be gleamed to increase sales
Gorman states that “Reducing shrinkage, managing cultural or organizational change and staying informed on new solutions” are the critical issues for loss prevention executives.
A recent independent White Paper has identified that for installations above 32 cameras, the total cost of ownership is less with network vs. analogue video. Innovations such as tampering alarms and for a copy of this White Paper visit www.axis.com