Retailers are aware of the need to make decision-making more efficient by making information available to store management. The Human Interface Technology Center (HITC) conducted a study with a major U.S. food retailer to verify that perceived need and to identify store managers' most significant needs for information. All store operations were considered, with careful examination of processes, tasks, environments, and associates.

The study identified cashier fraud detection as the most important and widespread information need in retail store operations. The HITC undertook to design a system that would address that outstanding need, resulting in the design and production of Cashier Monitoring. The HITC is now also developing a library of additional applications to meet other needs identified in the study.

Cashier Monitoring runs continuously on the store's computer network, taking data from the point-of-sale applications as each transaction occurs. The system then automatically analyzes the data associated with each transaction, and with groups of transactions, fulfilling the following three basic functions:

• Generates Alerts. As the transaction analysis is performed, Cashier Monitoring compares results of each transaction and group of transactions with standards and rules pre-determined by historical operations and other criteria. When the transaction departs from these norms, the system generates an Alert for store supervisors, such as front-end managers, that there is reason for concern. The rules may be modified to respond to differences in customers and store personnel; they can be different for each store, department, or type of cashier.
• Generates Ad-hoc Reports. The system can generate special reports case-by-case for different types of cashiers and terminals, customized by store. The user asks a question of the system, and it brings up a table of numbers that can be sorted and graphed to display patterns. The user can also drill down into the database to study the activities of a given cashier.
• Automatically Analyzes Operations. The system automatically finds patterns without being queried or prompted. Among the patterns that are examined automatically are items per minute, performance profiles, and item voids. The system automatically generates text descriptions and graphs that describe the patterns and help the user to visualize the data.

Multiple Uses

Cashier Monitoring may be used for a variety of management activity in addition to fraud detection and loss prevention. The patterns identified and reports generated can also be useful management tools for spotting consistent errors and flaws in operational procedures. It can be an invaluable tool in employee training, and in employee performance evaluation for rewards or coaching.