Welcome, Fred

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Welcome, Fred
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(No Transcript)
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What is the Navy Exchange?

• Government retailer
• 2 billion in sales
• 16,000 associates
• 112 main stores, 420 total retail locations
• Located on or near Naval Bases
• Worldwide from Japan to Europe
• Authorized shoppers only
• Unique retail environment highly diversified

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Highly Diversified Types of Businesses

• Store Type Merchandise Sold/Service Provided
• Mini Mart Food and beverages, Health and Beauty
  Aides, paper products, tobacco products
• Country Store Home products, furniture, toys,
  sporting goods, outdoor products
• Home Store Furniture, major appliances
• Package Store Alcoholic beverages
• Autoport Gas, tires, batteries, oil, auto
  accessories
• Uniform Store Uniforms only
• Navy Lodge Motels, Health and Beauty Aides
• Music Store Audio/Video products
• Book Store Books, stationary, cards
• Main Store All merchandise above, plus
  fashions/clothing

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Widely Varying Sales Volume

• High end
• 145 million in sales
• 150,000 square feet
• 50 registers

• Low end
• 242,000 in sales
• 1,000 square feet
• 1 register

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All Things Are Not Equal

• Challenge maximize the value of POS exception
  reporting in a highly diversified environment
  with widely varying
• Types of businesses
• Product type
• Sales volume
• How is this achieved?
• Establishing the norms

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Establishing The Norm A S.O.U.N.D. Approach

• Specific
• Operating
• Unit
• Norm
• Development
• Norms must account for our distinctly different
  business types and wide ranging sales volumes.

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Establishing Norms

• Norms must be established for key transaction
  types within the various operating units to
  reveal true exceptions
• Exception reporting value is achieved through
  norm development of key risk transactions
• refunds, voids, no sales, etc.
• Equal comparisons between operating units

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Establishing Norms within Business Types

• Store Type Norm
• Refund Line Void Discount
• Mini Mart , , ,
• Country Store
• Home Store
• Package Store
• Autoport
• Main Store , , ,
• Comparing Apples to Apples

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Apples to Apples Business Type Comparison

• Top level reporting groups broken down by
  business type

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Apples to Apples Business Type Comparison

• Transactions across varying business types have
  different exception thresholds
• The average line item void frequency and amount
  in a main store is much different than in a
  furniture store.

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Establishing Norms for Sales Volume

• Store Type Store Class Norm
• Refund Line Void Discount
• Mini Mart Class A , , ,
• Class E , , ,
• Country Store
• Home Store
• Package Store
• Autoport
• Main Store Class A , , ,
• Class E , , ,

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Apples to Apples Sales Volume Comparison

• Transactions across widely varying sales volumes
  have different exception thresholds
• The average refund frequency and amount in a 15
  million store is much different than in a 40
  million store.

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Apples to Apples Sales Volume Comparison
Top level reporting groups broken down by
sales volume
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Beyond Norms Focusing On The Target

• Target stores
• stores above a designated shrinkage percentage
• Target departments
• departments above a designated shrinkage
  percentage
• Target SKUs
• Known high-risk SKUs

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Share The Knowledge Providing Access to the Field

• 350 full time LP personnel in 11 districts.
• Selected individuals with a combination of
  investigative and computer skills.
• Provided two-day training at headquarters,
  focusing on the importance of analysis within
  specific business units.
• Deployed the system to 50 users in the field.

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Results Overall Case Analysis

• 30 Fraudulent Refunds
• 20 Line Item Voids
• 15 Discounts
• 15 Under-ringing/Sweethearting
• 10 Post Voids
• 10 No Sales
• Million dollar club!

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Operating Unit Case Analysis

• Store Type Store Class Case Analysis
• Refund Line Void Discount
• Mini Mart Class A , ,
  ,
• Class E , ,
  ,
• Country Store
• Home Store
• Package Store
• Autoport
• Main Store Class A , ,
  , Class E , ,
  ,

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Vision For The Future

• Functionality-based enhancement
• What the application does
• Platform-based enhancement
• How the application is deployed and accessed

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Vision For The Future

• Web-enabled exception reporting

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Current Platform Client-Server

• PC-based
• Software resides on the PC
• Application must be installed on each PC
• CD-ROMs or a network push
• Upgrades must be delivered to each PC
• Another CD-ROM or a network push
• Not the most efficient method for installation,
  accessibility and upgrades

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Future Platform Web-Enabled

• A web-enabled model provides several benefits
• Ease of application distribution
• Ease of application accessibility
• Ease of application upgrades and maintenance
• Supports the thin client (server-based) model

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Future Platform Web-Enabled

• Ease of application distribution
• No application packages to push over the Wide
  Area Network (WAN) which requires scheduling,
  resource commitment and end-user contact.
• Ease of application accessibility
• Instant accessibility through browsers via a WAN.

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Future Platform Web-Enabled

• Ease of application upgrades and maintenance
• Upgrades and fixes are made to a single
  application web server.
• Users can enjoy the benefits of upgrades
  immediately.
• Supports the thin client (server-based) model
• Migration away from the complexities of the
  typical PC-based network.

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Links

• Navy Exchange
• www.navy-nex.com
• Aspect
• www.aspectlp.com
• Thin client computing
• www.thinclient.net/technology/history-short.htm