Guest Feature: German premiere for Diebold Nixdorf’s AI solution combating shrinkage

Having already proven itself in many pilot programs, Diebold Nixdorf’s AI-powered solution to combat shrink, Vynamic® Smart Vision I Shrink Reduction, is now being used live by the first German retailer. The software has recently been deployed for use at eight self-service checkouts at one of Edeka Paschmann’s supermarkets in Düsseldorf.

The AI-based technology addresses unintentional and deliberate misuse at the self-service checkout, offering retailers protection against the most common causes of loss in the self-checkout area. For example, it detects when customers pass an item through the scanner without actually scanning it, when product barcodes are swapped, or when customers leave the checkout area without paying. The technology can also detect accidental operating errors at the self-checkout. Customers can pay quickly and accurately and complete their shopping conveniently.

Help with incorrect operation

Vynamic® Smart Vision I Shrink Reduction analyses customer behavior and activities in real time using cameras. If the system detects an incorrect scan or incorrect operation, the customer receives a message on the self-checkout display indicating that an item has not been scanned correctly. The scanning process can then be repeated independently without any major interruption to the checkout process.

Only if the system displays another error message, staff are being informed and can, if necessary, provide support to complete the checkout process correctly. Short video sequences of the anomaly detected by the system help to better illustrate the process to the customer and explain how certain operating errors can be avoided. Since the software does not use facial recognition or save images and other customer information, it is GDPR-compliant.

Detection of many causes of shrinkage

“With Vynamic® Smart Vision I Shrink Reduction, we cover most of the common causes of shrink,” says Leyla Feghhi, Head of Retail Sales in the DACH region at Diebold Nixdorf. “At the same time, the technology enables employees to better assess situations so they can respond appropriately. This prevents customers from being immediately suspected of theft every time they accidently scan an item incorrectly, or staff from having to engage in difficult situations without the right information at hand.”

The fact that customers also benefit greatly from the solution – for example, through assistance with fast, error-free payment at the self-service checkout – is a particular priority for Falk Paschmann, Managing Director of Edeka Paschmann: “The well-being of our customers is a high priority in our stores. We want to make the shopping experience as appealing as possible for them with state-of-the-art technology. This also applies to the payment process. With Diebold Nixdorf’s solution, we are making the self-service area even more attractive, as we give our customers the assurance that all transactions are carried out correctly and quickly.”

Additional AI solutions for maximum benefit at the self-checkout

In addition to the AI solution for preventing shrinkage, the self-checkouts at Edeka Paschmann are also equipped with Vynamic® Smart Vision I Age Verification, Diebold Nixdorf’s software for automated, AI-based age recognition. This enables customers to have their age automatically verified when purchasing age-restricted items, such as alcoholic beverages.

When such an item is scanned, facial features are analyzed with the customer’s consent to determine their age. If this value exceeds a predefined threshold, the transaction can continue. Otherwise – and if customers do not want automatic age recognition – a check is carried out by staff. This solution is also GDPR-compliant, as no personal facial identification takes place and no customer information is stored.

One platform – three effective AI solutions

Both AI solutions are based on Diebold Nixdorf’s Vynamic® Smart Vision AI platform, currently one of the most comprehensive AI solutions available for retail. The platform also includes a third solution: Vynamic® Smart Vision | Fresh Produce Recognition, which allows customers to easily and accurately scan barcode-free products such as fresh fruit and vegetables. The technologies for automated age verification and fresh produce recognition are already being used with great success at the Edeka Beckesepp supermarket (Waltershofen/Freiburg im Breisgau).

The three AI solutions can be used independently of each other or as a complete package. With its Storevolution™ Advisory Services, Diebold Nixdorf provides strategic advice on how retailers can make their checkout technology customer-friendly and future-proof, and how they can make optimal use of solutions based on the Vynamic® Smart Vision AI platform for themselves and their customers.