Organized retail crime (ORC) is on the rise, but it’s not well-known outside the retail industry. Rather than thefts perpetrated by one individual, ORC involves groups working together to steal a significant percentage of the $100 billion retailers lost in 2022. These groups are the modern version of Dickens’ Oliver Twist. Different members of the ORC group survey the targeted items, provide a distraction, and steal the merchandise. They never steal items of enough value to be charged with a felony if caught.
The economic impact of these schemes can be felt beyond the retail industry. The loss in economic activity due to ORC in the United States was nearly $125 billion in 2022 alone. While pharmacies, big box stores, and home improvement retailers are the top three targets, financial services, capital markets, and insurance companies are experiencing a ripple effect.
To stem losses, retailers add security guards, tag merchandise, and surveillance systems. Retailers hope to prevent ORC rather than prosecute offenders. Once the merchandise leaves the store, the retailer incurs a loss. However, many believe deploying more cameras is too costly.
Combining IP-based security with power over Ethernet (PoE) technology can provide any organization with a cost-effective solution for reducing the impact of ORC. IP devices communicate over the Internet, which reduces communication costs, and PoE technology can power motion-activated cameras, eliminating the need for a separate power source.
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What Is IP-Based Security?
IP-based security systems use an internet protocol (IP) to send and receive images over an IP network. The digital images are delivered to a remote device for storage. Recordings no longer have to be stored locally.
A network video recorder (NVR) is a software program that saves digital video footage to a storage device, hard drive, or the cloud. Users can search footage by specific dates or times depending on the software.
What Is PoE?
PoE technology allows for data and power transmission over a single Ethernet cable. Following standards set by the Institute of Electrical and Electronics Engineers (IEEE), PoE delivers up to 1000 MBPS of data and up to 90W of power over Cat 5 and 6 cables. Newer standards that can support gigabits of data are already under development.
How Does PoE Work?
PoE technology passes electrical current through Ethernet cables to power PoE-capable devices such as IP cameras, access points, and sensors. A PoE device, such as an injector or switch, operates as a power source and sends electric current over an Ethernet cable. PoE devices connected to an Ethernet network use the technology to receive data and power through a single cable.
What Are the Benefits Of PoE?
PoE technology provides the flexibility and reliability that today’s surveillance systems require. This technology allows retail businesses to adapt to changing security requirements without straining their budget. Other benefits of PoE include:
- Efficiency: Setting up PoE is as simple as installing network cabling, which means IT technicians can handle the job. There’s no need to pay an electrician to run power lines to and from surveillance cameras.
- Flexibility: In the retail industry, building configurations change constantly. Businesses make adjustments to their store layouts for seasonal displays. With PoE IP-based security systems, it’s easy to add or relocate cameras as needed to ensure adequate coverage.
- Reliability: Loss of power shouldn’t mean a loss of security. Organizations can add an uninterruptible power supply (UPS) to their network. A UPS delivers backup power to support PoE-powered devices. With up to 90W of power, PoE technology allows security systems and lighting to operate until power can be restored.
- Adaptability: Because PoE technology is backward compatible, new and old solutions can exist on the same network without significant changes. Businesses can add devices that will connect non-PoE devices to a PoE-enabled network.
Using PoE technology to drive IP-based cameras gives businesses a cost-effective solution for improved security.
What Are the Benefits of IP-Based Security?
IP cameras offer improved imaging, greater flexibility, and ease of operation. Cameras come with different resolutions and aspect ratios to fit specific deployments. One IP camera can replace multiple analog devices, reducing unnecessary equipment. Some other benefits of IP camera surveillance systems include:
- Lower Costs: Analog cameras require coaxial cables, control wires, and power cables. IP cameras that use PoE technology require a single cable, reducing installation and maintenance costs.
- Greater Flexibility: IP cameras can be installed anywhere because they do not require a local recording device. Finding space for an IP camera is much easier than locating space for the camera, the recorder, and other equipment. With PoE-capable cameras, surveillance can occur in out-of-the-way places where power is unavailable.
- Better Security: Many IP cameras have built-in encryption capabilities to secure data transmission. They may also incorporate artificial intelligence (AI) features to automatically identify suspicious behavior, count customers, or “see” smoke. They can also alert first responders in the event of an emergency.
As with most technology, IP cameras are continuously improving, enabling better identification of potential bad actors and hazards.
Why Integrate PoE IP Security Systems?
IP-based security systems provide a centralized location for video storage that Big Data and AI can access. Decentralized systems require merging data that requires extracting local files, converting data to a standard format, and placing the combined data where external resources can access it. This process is time-consuming and prone to error.
Customer Insights
Companies can gain insights into customer behavior by applying advanced technologies to centralized data. While security may be the primary focus, learning more about the behavior of your customers and employees can improve retail experiences. Assessing employee/customer interactions can be especially helpful during peak periods.
Improved Coverage
Adding PoE-capable IP cameras extends coverage to remote locations or hard-to-reach spaces. Retailers can place cameras in areas where power is unavailable. With higher resolution and broader coverage, IP cameras can give businesses visibility in unreachable places.
Increased Agility
With PoE technology, organizations can quickly reconfigure a security system. Suppose a remote location sees an uptick in crime. Adding additional cameras means a Cat 5e, Cat 6, or Cat 6A cable and an IP camera—no need to wait for an electrician to run power lines. Businesses should be just as agile as the criminals that target them.
PLANET Technology distributes PoE networking devices, including switches, media converters, and Ethernet extenders. PLANET’s headquarters are in Chino, California, with fast access to major transportation routes for prompt delivery. If you’re considering an IP-based camera system, why not integrate PoE technology for added savings and functionality?