NERVE — Network Earnings & Risk Visibility Engine

Project NERVE v14-AI | Model v13 + AI Analytics | n=26,167 | CRITICAL 95.6% precision | HIGH 93.8% | Combined 92.8% (3mo grace) | June 2026
ℹ Definitions

vs Network (Axis 1): Score 0-100 measuring how much worse this locker performs compared to the network average. Based on DPMO ratio, throughput deficit, ticket frequency.
vs Self (Axis 2): Score 0-100 measuring how much worse this locker is compared to its own 9-month history. Based on DPMO trend, throughput decline, ticket spikes, maintenance increases.
HIGH RISK: Both axes ≥ 40. The locker is worse than average AND getting worse over time. Double signal = intervention needed.
MODERATE RISK: One axis ≥ 40. Either worse than network OR declining vs self, but not both.
Positive + HIGH RISK: A locker can be profitable today but flagged HIGH RISK because it is deteriorating on both axes. The EWS catches this early so ops can intervene before losses begin.
Churn Score: Renewal-specific. Composite of performance signals that historically preceded non-renewals (validated at 40% detection, 18% false positive).

Early Warning System — Two-Axis Scoring

Every locker is scored on two independent axes. HIGH RISK = worse on BOTH axes (AND, not OR).

Axis 1: vs Network

How much worse than the average locker?

• DPMO ratio (locker / network avg)
• Throughput deficit (network avg / locker)
• Ticket frequency vs network median

Axis 2: vs Self

How much worse than own 9-month history?

• DPMO trend (recent 3mo vs prior 6mo)
• Throughput decline rate
• Ticket spike (recent vs historical)
• Maintenance cost increase

HIGH RISK = both axes ≥ 40 (worse than network AND getting worse over time). MODERATE = one axis ≥ 40.

1,149
HIGH RISK
Both axes bad
3,081
MODERATE RISK
One axis bad
13,679
Total Scored

Why Positive Lockers Can Be HIGH RISK

The EWS intentionally flags lockers that are still profitable today but deteriorating on both axes. Currently 174 of 1,149 HIGH RISK lockers (15%) are net-positive. These lockers are worse than the network average AND worse than their own recent history — they have runway before going negative, but the trajectory is clear. This is by design: the EWS is an early warning system, not a "already broken" detector. Catching deterioration while a locker is still positive gives operations time to intervene before losses begin.

All At-Risk Lockers (4,230)

All lockers flagged HIGH RISK or MODERATE RISK. Filter by risk level or axis to focus on specific segments. Summary KPIs update when you filter.

4,230
Shown
1,149
HIGH RISK
3,081
MODERATE
Avg Net $/mo
Avg DPMO
Annual Loss
KIDPartnerRisk LevelAxisvs Networkvs SelfCombinedNet$/moDPMOTputTicketsTierVerticalEst 2026

Partner Portfolio Risk

PartnerAt-Risk KIDs% PortfolioAvg EWS Score
7-Eleven - Company45557.71327313103991%70.74705313812888
Amazon Locker Team - Inbo25355.97107236050827%-181.02987368879403
Circle K - Company17259.38901019011772%194.8441306112631
Dollar Tree15754.84622752063482%-166.66937507290154
Staples15655.86509671031876%-176.34628205128206
Family Dollar12755.28174208763905%-136.17874452051424
Ross12255.39853776236741%-84.72476775956287
QuikTrip10357.16974521571891%-231.10050701186623
Wawa9357.2028939391373%-165.8047072879331
OmniEngine7560.26277106199972%-187.65405925925927
Burlington6851.07316502383591%-122.51566993464054
Albertsons/Safeway5059.78521043836865%-226.83140000000003
Love's Travel Stops3961.58065613714509%347.3272015651633
Amazon Delivery Stations3755.27415693058918%-218.6047447447448
UNFI - Company3357.8450204117756%43.225562331582864

Renewal Predictions — Residential Portfolio

Lease renewals apply to residential lockers only (apartments, multi-family housing). Commercial lockers operate via partnership agreements without rental contracts.

Key insight: "Renewed? = No" does NOT mean they declined. It means not yet renewed. Only if the contract is EXPIRED and Renewed? = No do we know it was not renewed.

Hindsight Validation

Signal Detection Rate

40% of past non-renewals had detectable signals 12 months before expiry. Signals are 2.2x discriminative of churn risk.

False Positive Rate

18% of lockers with signals still renewed. Signals indicate risk, not certainty.

Renewal Decision Matrix

BucketCountActionRationale
KEEP399Don't touchProfitable, silent. $3.16M/yr at zero rent. Do NOT disturb.
RENEW1,026Proactive outreachLow risk, profitable. Lock in before competitor approaches.
FIX34Address issues firstProfitable but has DPMO/ticket signals. Fix before renewal convo.
ENGAGE39Partner conversationProfitable but partner showing unhappiness signals.
PREPARE EXIT17Line up replacementUnprofitable + signals. Plan transition to nearby viable location.
MONITOR126Quarterly reviewMarginal, quiet. Could go either way.

Expired Leases = Lost Revenue Opportunity

406 residential leases expired without renewal — partners stopped paying lease fees ($3.16M/yr in lost lease revenue). These lockers still operate and many remain PnL-positive from transport savings alone. Strategy: (1) Proactively pursue renewal outreach to restore lease payments. (2) Do NOT remove any locker with positive PnL even if lease is expired — transport savings still justify the placement. (3) Only consider removal if locker is net-negative AND lease expired AND partner unresponsive.