Magazine Article | August 13, 2009

Ease Alarm Monitoring Conversion

Source: Innovative Retail Technologies

In less than 90 days, this retailer converted alarms in more than 700 stores without detracting focus from its loss prevention (LP) program.

Integrated Solutions For Retailers, August/September 2009
Alarm monitoring is quickly becoming a standard security practice, especially among chain store retailers. As such, the cost associated with alarm monitoring has been decreasing as of late, and increased competition among alarm monitoring providers has led many retailers to convert systems. Rainbow Apparel is one such retailer. John Feretich, director of LP there, wanted to convert his alarm monitoring provider without sacrificing the integrity or driving up the cost of his company's LP effort. He was also looking for an immediate ROI upon conversion.

Rainbow Apparel has operated some form alarm system since it opened its doors more than 60 years ago. Today the retailer operates 1,100 stores, and last year, the retailer opened 200 stores. Each store has an alarm monitoring system. "As the number of store locations increase, retailers hope their alarm monitoring costs decrease, because the vendor is offered a bigger opportunity," says Feretich. "However, at some point, retailers hit a stalemate, because the vendor typically hits its lowest price. I accepted that argument for about six months before I needed to reduce labor costs and control equipment costs. I could no longer accept that our current deal on alarm monitoring was the best offer available. It was time to covert our alarm monitoring system." Therefore, Feretich needed a way to seamlessly convert the retailer's costly alarm monitoring system without disrupting its 24/7 store monitoring.

Attend Trade Shows To Compare And Contrast Alarm Monitoring Vendors
Feretich attended NRF LP in 2008 to find a viable alarm monitoring vendor. After acquiring information from multiple vendors, Feretich selected NuTech National, an alarm installation, service, monitoring, CCTV (closed circuit television), and card access provider. Following the conference, NuTech National developed an alarm conversion plan for Rainbow Apparel locations. In addition to its conversion services, NuTech National offered the retailer NuTech Link, Web-based alarm management software that can be accessed by personnel with different levels of responsibility. NuTech Link is provided free of charge to the vendor's customers, and it is used by retailers after the conversion process is complete. NuTech Link provides real-time access to alarm information, and it enables Rainbow Apparel to view alarm data for each location. Also, the software enables Feretich to view test timers or alarm test detail. NuTech Link reports on store openings and closings, as well as alarm detail including operator notes, zones activated, and contacts called. Also, the software includes notes from the central station operator. Feretich can view, add, delete, and edit codes and call lists, request service, and track pending service and installation work orders.

NuTechLink also has auto email alert capabilities with selectable distribution by report for field and corporate personnel. Feretich can view early and late store openings and/or closings as well as unauthorized entry outside of normal business hours. Also, Rainbow Apparel receives notification of any fire or police dispatches which aids in reducing false alarms.

Alert Employees About An Alarm Monitoring Vendor Change
In August 2008, NuTech National provided Feretich with several options for converting the retailer's monitoring system while keeping his costs low in order to realize savings. Yet, with more than 700 stores to convert, John needed to ensure this project did not detract from maintaining his focus on the company's loss prevention program. Prior to the rollout, the retailer alerted its employees of the change, because the employees are trained to deal with one and only one monitoring service. If a problem occurs, employees are trained to deal with one particular company. Feretich worked with store managers to ensure the staff knew the vendor had changed. "We could not allow a store to go unprotected," says Feretich. "We required a seamless transition of phone lines and telecommunication lines between stores, headquarters, and NuTech National's office."

NuTech National led its project management team by planning each conversion phase and was able to convert all the retailer's sites using one of several options based on each store's need. The first option was the line swing. Many of the stores' communication panels where programmed to dial a 1-800 telephone number owned by Rainbow. The vendor rerouted this line so it reported to its central station. NuTech National then used phone lines to communicate to each panel to ensure the codes and call lists were set up correctly and communicating with the new central station.

The second option, remote conversion, allows NuTech National to dial into the panels, and redirect the panel's data to the new central station to ensure the codes and call lists are correct. Onsite access to keypads was the third option. Via the telephone, the vendor instructed Rainbow Apparel's manager to push certain keys on the keypad, which gave NuTech National access to the panel for conversion. In some cases, a NuTech National technician had to visit the retailer's location to convert the panel on site. Finally, as a last resort in a few locations, the vendor performed panel and keypad replacements. Some panels and keypads were replaced due to equipment issues and obsolete panels.

NuTech National converted more than 700 Rainbow Apparel in less than 90 days to the NuTech Link system. Because of the conversions, the retailer has experienced a 50% reduction in recurring alarm-related costs, and a 25- hour per week decrease in labor. "In the past, we received 50 phone calls a week from store locations with alarm-related problems," says Feretich. "Now, we can see how stores are doing by logging onto the NuTech Link Web portal."