Shrinkage Detection for Home Improvement, scoped to procurement
Merchandising wants Ward. You sign the contract. Ward watches shrinkage over 50,000+ home SKUs and delivers the procurement read on a daily cycle.
What a home Head of Procurement sees in shrinkage
Merchandising wants Ward. You sign the contract. Ward surfaces the readings that change a procurement decision.
Shrinkage Detection, in one sentence. Ward identifies abnormal inventory loss patterns and distinguishes between theft, damage, spoilage, and administrative error.
Applied to Home Improvement, the surface area is 50,000+ SKUs throughout stores. Project-based purchasing, long-tail SKUs, and seasonal volatility. Ward manages the complexity of 50,000+ SKU environments with ease.
How it runs. Ward compares expected inventory against actual counts, segments loss by cause category, and flags store-level anomalies against your estate baseline.
Capabilities
- Cause-level shrinkage attribution
- Store-vs-estate benchmarking
- Receiving dock anomaly detection
- Pattern recognition across time
Chat
Ask anything. Ward routes to the right agent and returns cited answers.
I pulled the spring pre-build against the last three seasons and the weather signal for the 22 Southeast stores.
| Signal | Finding |
|---|---|
seasonal_prebuild | Mulch on-hand hit 61% of plan the week temps broke 70°F |
dc_push | DC push started 9 days after the first-warm-week trigger, LY it was 2 |
attach.project | Soil and edging attach fell 18% at stores that gapped on mulch |
Recommend: tie the push trigger to the 10-day forecast instead of the calendar week, pre-position two truckloads at the 8 stores that gapped, and re-set the attach endcap.
seasonal_prebuild…
Reporting
Pinned views built from saved data-lake queries. Every number re-derivable from its SQL.
| Model | Horizon | MAPE |
|---|---|---|
holt_winters | 4wk | 4.1% |
arima_sarimax | 13wk | 8.9% |
gbm_demand | 1wk | 2.1% |
bayes_hier | new store | 11.4% |
Sources
Connect external systems to the data lake.
| Name | Type | Last sync |
|---|---|---|
epicor_pos_transactions | import | 2m ago |
epicor_special_orders | import | 2m ago |
netsuite_inventory_snapshot | import | 14m ago |
retail_seasonal_prebuild | import | 1h ago |
retail_sku_velocity | import | 1h ago |
retail_pro_account_sales | import | 1h ago |
retail_weather_daily | import | 1h ago |
Policies
Browse and manage Cedar access policies for your tenant.
| Policy ID | Effect | Resources |
|---|---|---|
merch-read-default | permit | Model::* |
pro-team-read-accounts | permit | Model::"pro_account_sales" |
vendor-blocked | forbid | Model::"labor_*" |
supply-read-orders | permit | Model::"special_orders" |
Why Shrinkage matters for Home retail
Small hardware has the highest per-unit theft rates but lowest dollar impact; power tools have lower frequency but massive loss per incident. Ward segments shrinkage by value tier and department so loss prevention allocates resources where the dollar impact is highest, not just where the unit count is.
Why this combination
is its own problem.
Shrinkage Detection behaves differently in home retail than it does anywhere else. The estate shape, the SKU count, and the speed of the category all change what counts as a real indicator and what is noise. Ward is tuned to the home version.
- 01 ORC patterns concentrate geographically; chain-wide LP allocation misses the cluster signal that directs investigative focus.
- 02 Pallet receiving discrepancies on building materials (lumber, drywall, roofing) often don't surface until the next physical because random sampling rarely catches the missing units.
Benchmarks. Home improvement shrink runs 1.4-2.6% of sales, with power tools, copper, and high-value building materials accounting for 30-50% of total dollar shrink despite small unit volume. ORC events typically affect a tight geographic cluster of 5-15 stores.
What Ward has eyes on.
Find the leak before it drains you. Ward runs the model continuously rather than on a reporting cycle, which is why a finding lands the morning the pattern starts instead of at the end of the period.
Ward keeps a running read on 50,000+ SKUs over your stores, at the store-category level rather than the chain roll-up. The metrics under watch include project basket value, seasonal accuracy, long-tail turn. A roll-up hides a single-store problem inside a healthy average, which is how project basket identification stays invisible for a quarter.
At the metric level. Ward segments by value tier, tracks geographic clustering for ORC detection, monitors receiving accuracy on bulk/pallet deliveries, and measures POS velocity-to-inventory count gaps.
What the first 90 days
actually look like.
-
01
Week 1: read-only connection
Ward reads straight from your existing systems on a read-only connection. Nothing is written back. First insight cards arrive inside the first 48 hours.
-
02
Weeks 2 to 3: baselines
Ward needs roughly two weeks of history per store to separate a real deviation from normal variance. During this window the insight cards are directionally right and the thresholds are still moving.
-
03
Weeks 4 to 12: operating rhythm
Insight cards arrive every morning and get triaged like any other queue. Most teams find the volume settles into something one person clears in ten minutes. What matters is the action rate, not the alert count.
Merchandising wants Ward. You sign the contract.
- ×Business sponsor saw the demo. You have a week to vet a vendor you didn't pick
- ×AI vendors price by seats and tokens. Total cost is unknowable until invoice three
- ×Multi-year commits with auto-renew. No exit if the pilot stalls
- ×Renewals come back 30% higher, with no room to push back and no benchmark to cite
- ×Security and DPA reviews start after the team has already committed
- ✓MSA, DPA, SOC 2 Type II underway, and architecture review available before signature
- ✓Month-to-month contracts. No multi-year lock-in. No auto-renew traps
- ✓Transparent pricing set by scope and store count
- ✓14-day insight guarantee. If Ward doesn't deliver, month two is on us
- ✓AI strategy, orchestration and reporting-layer work in enterprise grocery at nine-figure revenue. Reference calls available before signature
Enterprise SaaS spend grew 18% YoY. 53% of subscriptions are underused or duplicative. Source: Gartner
Home KPI impact
Frequently asked questions
Ward identifies abnormal inventory loss patterns and distinguishes between theft, damage, spoilage, and administrative error. For Home retail specifically, Ward monitors 50,000+ SKUs across your stores and delivers automated insight cards with root cause analysis and recommended actions.
Ward tracks Project basket value, Seasonal accuracy, Long-tail turn, Pro customer share, Attachment rate at the store-category level. Ward compares expected inventory against actual counts, segments loss by cause category, and flags store-level anomalies against your estate baseline.
Merchandising wants Ward. You sign the contract. Ward solves this with automated insight cards: MSA, DPA, SOC 2 Type II underway, and architecture review available before signature. Month-to-month contracts. No multi-year lock-in. No auto-renew traps. Transparent pricing set by scope and store count.
Ward delivers daily insight cards covering Project basket value, Seasonal accuracy, Long-tail turn, tailored for Procurement decision-making. Each card includes what changed, why it matters, and what to do next.
Ward segments by value tier, tracks geographic clustering for ORC detection, monitors receiving accuracy on bulk/pallet deliveries, and measures POS velocity-to-inventory count gaps.
Ward flags elevated power tool shrinkage at a geographic cluster of stores, concentrated during weekday afternoons, a pattern consistent with organized retail crime. Ward recommends immediate spider-wrap enforcement and receipt-checking at affected locations. LP investigation confirms a theft ring, and targeted intervention brings shrinkage back toward estate averages within weeks.
First insight cards arrive within 48 hours of data connection. Ward needs approximately 2 weeks to establish stable baselines for your specific operation.
No. Ward sits on top of your existing stack. It is the proactive intelligence layer that watches your data continuously and delivers insight cards, so your team acts on findings instead of hunting for them.
Related solutions
See what Home shrinkage problems Ward catches.
Root causes, not just alerts. See it on your data.
Read-only to start · your LLM keys · SOC 2 Type II underway · or book a call directly
Find out what your data has been hiding.
Tell us about your operation. We’ll show you the problems Ward catches, and the ones your current tools miss.