IDScan.net, Rouses Partner to Create Loss Prevention Software
NEW ORLEANS – IDScan.net, a provider of identity verification and information gathering solutions, and Rouses Market, a 65-store grocery chain, recently completed a pilot program of a new loss prevention solution called IDWare Profit. The companies say the solution reduced returns by 36% at participating stores. Following the pilot, Rouses has expanded the use of the solution in more than 90% of its stores and plans to include all its stores this year.
“The significance of this solution has taken on a whole new meaning during the pandemic, with stress buying way up and the economy way down,” said Denis Petrov, the CEO of IDScan.net. “Groceries and retailers of all kinds must be extra vigilant to protect their bottom lines during these extraordinary times, and our new, proven solution makes it possible.”
Merchandise return fraud cost U.S. retailers $18.4 billion last year, and fraud and abuse combined cost $24 billion, according to the National Retail Federation. IDSCan.net said IDWare Profit is an affordable and easy-to-use standalone tool that requires no IT integration. It manages and prevents losses related to returns fraud, vendor visits and routine operations.
The IDWare Profit solution is powered by IDScan.net’s ID scanning and parsing technology. It allows retailers to use an iPad kiosk installed at customer service to scan an individual’s ID when they seek to return merchandise. In an instant, the solution automatically captures the information from the ID and creates a record of the customer and the return. If returns reach a set dollar threshold for the individual during a given time period, IDWare Profit immediately triggers a manual review of the return. The solution is cloud-based, so the information is shared across all store locations in real time and can be accessed by management through an online portal.
The pilot began last year, and IDScan.net and Rouses have been working to refine it ever since.
“We saw a 36% reduction in merchandise returns in our five pilot stores during the first five weeks while other stores in the area saw an increase in returns during the same period,” said Rouses Vice President Barton Howard. “It’s clear the solution is not only catching fraud, it’s deterring it. The solution is much more than paying for itself, so we’re deploying IDWare Profit across all our stores.”
The new tool also allows retailers to manage vendors by scanning their IDs to create time-stamped records of when vendors arrive and when they leave. Retailers can use this information to ensure that bills accurately reflect the time a vendor spent at the store, and that deliveries were made when vendors claim to have made them.
Finally, IDWare Profit’s timers module allows stores to manage and track routine operations and audits. Employees scan their badges after performing tasks, including floor checks, and the system creates a time-stamped, forensic record that can be exported from the retailer’s database and used to fight frivolous slip and fall claims.
“IDWare Profit is giving frontline staff the information they need to make smart decisions,” said Petrov. “Store managers can make better judgement calls when reviewing returns, verifying how long a vendor was in a store, and ensuring employees are performing required checks.”