{"id":518272,"date":"2022-06-14T05:00:17","date_gmt":"2022-06-14T12:00:17","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=518272"},"modified":"2024-05-10T06:22:09","modified_gmt":"2024-05-10T13:22:09","slug":"securing-goods-against-retail-crime-and-more","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/securing-goods-against-retail-crime-and-more","title":{"rendered":"The Art and Science of Securing Goods from Manufacturing to Point of Sale"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[22],"tags":[22772,381332,479692,1161,386292],"department":[488822],"wherenext-category":[],"industry":[],"class_list":["post-518272","wherenext","type-wherenext","status-publish","format-standard","hentry","category-esri-insider","tag-manufacturing","tag-operational-awareness","tag-pattern-detection","tag-retail","tag-supply-chain-visibility","department-sustainability-risk"],"acf":{"short_description":"Billions of dollars\u2019 worth of goods disappears from the supply chain each year. New techniques aim to break the trend. ","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"As a store detective in the early days of his career, Read Hayes never would have guessed that he\u2019d someday gather executives around digital maps to study patterns of retail theft. Back then, he placed metal pins in paper maps, hoping to understand whether merchandise was disappearing from certain store departments more than others."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>Article snapshot:<\/strong> Counterfeiting, cargo theft, retail smash-and-grabs\u2014from the beginning of the supply chain to the end, products have always been vulnerable to bad actors. Now location-aware technology is providing operational awareness for loss prevention.","snippet":""},{"acf_fc_layout":"content","content":"After several years in loss prevention, Hayes earned a PhD in criminology and founded the Loss Prevention Research Council in 2000 with 10 major retailers. Today, the group numbers almost 70, and Hayes has left the paper maps far behind. The council uses modern <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/enterprise-technology-behind-big-business-decisions\/\">geographic information system<\/a> (GIS) technology to detect patterns in retail crime and give <a href=\"https:\/\/www.esri.com\/en-us\/industries\/retail\/overview\">retailers<\/a> the operational awareness they need to keep products, employees, and customers safe.\r\n\r\n\u201cIt\u2019s a way for everybody to gather around the table with that kind of mapping to . . . \u00a0think about these [events],\u201d Hayes explains. \u201cWhy are they happening here and not here?\u201d\r\n<h3><strong>Evolving Criminal Trends, from Retail Theft through the Supply Chain <\/strong><\/h3>\r\nRetail theft has been in the spotlight during the COVID-19 pandemic. Pharmacy chain CVS says <a href=\"https:\/\/www.axios.com\/2022\/02\/11\/shoplifting-retail-crisis-online-resale\">in-store theft<\/a> has soared 300 percent since 2020. That\u2019s just one chain, and shoplifting is only one piece of the puzzle.\r\n\r\nOrganized, sometimes violent retail crime is also expanding in scope and scale. Prominent, upscale retail brands are increasingly falling victim to coordinated <a href=\"https:\/\/www.npr.org\/2021\/11\/21\/1057817911\/80-people-california-san-francisco-nordstrom-organized-theft\">smash-and-grab attacks<\/a>. Thieves are netting tens of thousands of dollars\u2019 worth of high-end products in minutes, and 86 percent of leading retailers say criminals have <a href=\"https:\/\/u7061146.ct.sendgrid.net\/ls\/click?upn=4tNED-2FM8iDZJQyQ53jATUS9q3Wai-2FLLYZHGUyguQpwQd-2Bnxk4nbRxLiEspSzKEjisA3lDY9-2Fj5Dheidky1hjz4CNlZjKqNlcdrXeXj0y1RzTfdn-2BjhgKQ5SX5CiICJbguQoM_teUpoUEouv1PFf-2BShOzaa2eGknPA0D4CYfHKXxn7WxarZZGDQj4QD2qc8qn3xgfg-2F0piYtenBr20Afu6DCUGAHk1GgtESZeobWyX1Mqaw-2Bmqtf-2BVsmICHEgNuXOnYUa7qv1IiwY3LMnI9OkrUXcjFA9ysz5MHFD6fpA3xEgLHMS22v1o5WvOEl6vvbPmc4tLEzjR2Lx8qYdkrkxs3g3mT7ascdIfr5Gm6W-2Fk-2F5rmZenpfrkD9y4LEgR5BY-2BauuPljhP41UzvjfyIt1dJJ4amhCw8sea4Nd1LerdG2mfSyCeHE0ZBVCY2yql3I2kPkGkN3AZHjOhwr4GC5AH2nbwFf1IksD5-2FEJeW5fONQYpQXD4-3D\">threatened store associates<\/a>. Online platforms and marketplaces provide nearly frictionless ways to <a href=\"https:\/\/www.theatlantic.com\/health\/archive\/2021\/12\/shoplifting-holiday-theft-panic\/621108\/\">liquidate stolen goods<\/a>.\r\n\r\nOn their own, incidents of retail crime might appear random. But GIS technology is helping to reveal patterns. Indeed, the go-to technology for market analysis and store selection for <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/dicks-sporting-goods-strengthens-omnichannel-through-brick-and-mortar-planning\/\">prominent retailers<\/a> is now providing operational awareness on retail crime.\r\n\r\n\u201cBeing able to visualize and identify where clusters of issues are occurring, possible patterns, or how things might be evolving\u2014or if there is some temporal-spatial movement [like] they're moving from east to west, for example\u2014those are going to be very important,\u201d Hayes says. \u201cThat's where we're headed right now with mapping.\u201d\r\n\r\nAs retailers gain operational awareness in and around their stores, other supply chain players are asking a new question: How can we use <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\">location intelligence<\/a> to ensure that products make it to store shelves in the first place?\r\n<h3><strong>Using Location Intelligence to Secure the Supply Chain<\/strong><\/h3>\r\nAlthough media coverage often focuses on retail theft, securing goods is a challenge at every stage of the supply chain, from manufacturing and distribution to point of sale. <a href=\"https:\/\/www.oecd-ilibrary.org\/sites\/07e8f19e-en\/index.html?itemId=\/content\/component\/07e8f19e-en\">Counterfeit goods<\/a> now account for some 2.5 percent of global trade\u2014more than $450 billion\u2014while cargo theft erases $15 billion to $35 billion from the legitimate supply every year, according to the <a href=\"https:\/\/www.nicb.org\/prevent-fraud-theft\/cargo-theft\">National Insurance Crime Bureau<\/a>."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<strong>Pattern-Spotting\u2014From Public Safety to the Supply Chain<\/strong>\r\n\r\nThe ability of GIS technology to detect criminal patterns in retail and supply chain settings has its roots outside the consumer goods industry. For decades, law enforcement professionals have used GIS to understand patterns of crime, creating the visibility they need to ensure public safety.","snippet":""},{"acf_fc_layout":"content","content":"By applying location technology to these issues, organizations can detect patterns and uncover better ways to secure the supply chain.\r\n\r\nIn one example, manufacturers using RFID tags can log each scan along the supply chain in a <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/geoblockchain-think-tank\/\">geoblockchain<\/a>. When viewed on GIS maps, a geoblockchain shows an audit trail of a product\u2019s journey from factory to store shelf.\r\n\r\nThat operational awareness can help manufacturers, shippers, and retailers spot where legitimate products have disappeared from the supply chain and where counterfeit products may have been introduced, pinpointing vulnerabilities in the network.\r\n\r\nIf a map of recent shipments shows a pattern of goods arriving at their destination port but failing to show up at a particular distribution center, the merchandise team might learn where containers are being diverted. Likewise, if the geoblockchain shows a cargo container leaving its port of origin but not reaching its destination port, that could indicate that goods were lost to inclement weather <a href=\"https:\/\/www.offshore-energy.biz\/one-boxship-loses-over-30-containers-in-north-atlantic\/\">while on the ocean<\/a>.\r\n\r\nOne key to creating this supply chain awareness is embracing technology adept at detecting patterns. For Hayes\u2014who is also a research scientist at the University of Florida\u2019s Wertheim College of Engineering\u2014that means getting closer to the emerging tech that fuels today\u2019s loss prevention work.\r\n\r\nHe\u2019s now using <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/enterprise-technology-behind-big-business-decisions\/\">GIS technology<\/a>\u2014itself powered by machine learning\u2014in combination with sophisticated AI models, natural language processing, and even robotics to map out and address the retail industry\u2019s challenges."},{"acf_fc_layout":"quote","image":518252,"text":"Maps tend to have a unifying effect. When decision-makers from various business lines visualize supply chain patterns together, they often see where their priorities intersect and how they can address shared issues.","author_name":"","author_profession_organization":""},{"acf_fc_layout":"content","content":"<h3><strong>Preparing for Nontraditional Threats, Now and in the Future <\/strong><\/h3>\r\nBecause retailers, manufacturers, and <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/coordinating-fedex-planes\/\">logistics providers<\/a> have long used GIS software to analyze markets, plan facilities, and <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/healthcare-delivery-optimization\/\">create efficient routes<\/a>, many already have access to a key technology for identifying supply chain vulnerabilities.\r\n\r\nSome are using location technology to prepare for nontraditional threats as well\u2014one of which is climate change. As wildfires, extreme flooding, high heat, and drought increasingly threaten supply chain continuity, some companies are <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/supply-chain-simulation\/\">using GIS and predictive models to gauge<\/a> when and where these factors could disrupt goods in transit years from now.\r\n\r\nIn today\u2019s supply chain, one innovative combination of <a href=\"https:\/\/weare42.io\/technology\/\">GIS technology and smart IoT sensors<\/a> is creating unprecedented levels of operational awareness. Smart shipping containers\u2014engineered to detect everything from security breaches to elevated levels of CO<sub>2<\/sub>\u2014aim to restore confidence to manufacturers, shippers, and retailers by deterring would-be bad actors.\r\n\r\nBack at the council, Hayes and team are studying location-based loss prevention techniques in the lab and in real-world retail environments, determined to create a safer environment for goods and people.\r\n\r\nRetailers have \u201cphysical issues coming at them 24\/7 year-round,\u201d Hayes says. \u201cThe mapping is going to help us better understand problems, better design and assess the effectiveness of what we do . . . We\u2019re just getting started.\u201d"}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Tech Aims to Stem Retail Theft, Supply Chain Bad Actors<\/title>\n<meta name=\"description\" content=\"Retail theft, cargo theft, and counterfeiting are all in focus for those trying to protect the supply chain from bad actors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/securing-goods-against-retail-crime-and-more\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Art and Science of Securing Goods from Manufacturing to Point of Sale\" \/>\n<meta property=\"og:description\" content=\"Retail 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