LP Magazine

JUL-AUG 2018

LP magazine publishes articles for loss prevention, asset protection, and retail professionals covering shrinkage, investigations, shoplifting, internal theft, fraud, technology, best practices, and career development.

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continued on page 34 JONES: That's right. Again, my boss, the COO Tom Brennan, his sole goal is to ensure that his team, including us, are finding ways to help the restaurants and the franchisees be more profitable. So if I take that as my headline, I have got to build a path to help us get there. And again, it's a different relationship because you can't force your ideas on them, but you certainly can say, "Here's what's worked for us and for others, and here are solution providers that we can recommend and stand behind that you might want to think about." We think there are a number of things that we can do to help franchisees around the globe be more profitable. EDITOR: I'm confident you will make that happen, Paul. Let's turn to some of your other unique roles in the industry. You had a great run with eBay. Tell us about that. JONES: What a great experience eBay was for me. When I was leaving RILA (the Retail Industry Leaders Association) and looking to get back into the industry, eBay offered me the opportunity to talk to them. I was a little suspicious because I knew that their site had stolen goods and believed at that time that they seemed to be resistant to taking care of that. But as I talked to them and met with individuals there, it became clear to me that the entire eBay retail problem centered around a lack of trust and communication. I looked the folks at eBay in the eyes and believed that they really, truly wanted to fix the problem. So I joined knowing that there was nowhere to go but up with the relationship. I started with just one focus—to try to bring eBay and retailers together. So in a quick period of time, I was able to show key people in eBay that there were stolen goods on the site and that we could use data to try to pinpoint that. EDITOR: How did you do that? JONES: One of my first hires was a programmer. I asked him to get me all the pawnshops on eBay who were selling baby formula, Crest Whitestrips, and diabetic test strips. There were hundreds of them on eBay. And from that point on we were able to drill into it to find out that they didn't have a clear supply chain, that they were actually buying product from people committing crimes, and we were starting to address some of those sellers on our site. That gained instant credibility with the senior team at eBay, and I became very trustful that eBay wanted to fix those problems. As I went around the world getting onboarded with eBay, I found out that we had something like sixty people who manually processed subpoenas. It seemed very odd to me that we were doing this manually through faxes given eBay was one of the largest technology companies in the world. So we came up with an approach to automate the process, so law enforcement would go through the web to give us their subpoenas. We would pull the data automatically. We built a system that does this, which works very well today in multiple languages. We took the payroll that we saved from that and hired asset protection managers. We started looking at not only stolen goods but also counterfeiting, exploitation of children, and money laundering on the PayPal side. We built reporting and mechanisms to not only identify those crimes but also actually go after some of those criminals. From forgeries in art and autographs to clearly stolen goods to someone scamming the system by buying stuff but not paying for it, we had different approaches across the globe for all of that. We made a real dent in crime, and within a couple years, as you guys highlighted in the magazine, instead of pointing fingers, retailers and eBay were working together to solve the problems as a joint collaborative team. I'm hearing that they're still doing great things with the retailers, which is really good. EDITOR: After eBay, you moved to the solution-provider world as COO of Turning Point Justice. What did you learn from that experience? JONES: At eBay, I had spent 80 percent of my time on the road. Moving to the solution-provider side was a big risk for me, but one of the real positives was it allowed me to work within two miles of where I lived. I had met Lohra Miller, the former district attorney of Salt Lake City, who talked to me about her technology project and her vision for helping the criminal justice world with petty crimes by educating offenders as opposed to having them arrested. It's something I have always believed in. She advised me that she was a partner with the National Association Today as we move to a total cost of loss strategy, I think it helps us build a better return on investment. I believe most LP practitioners have always taken into consideration what the total cost of loss is, but now there is framing around it that creates a more powerful message to speak to the corporate business leaders. 32 JULY–AUGUST 2018 | LOSSPREVENTIONMEDIA.COM INTERVIEW

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