Technological advancements in on-pack security labels and tags are proving hugely valuable to retailers. Advancements in anti-theft Electronic Article Surveillance (EAS) and Radio Frequency Identification (RFID) labelling technology offers retailers improvements in everything from product presentation and security to improved efficiency, supply chain visibility and inventory management. Put simply, these new labelling developments are delivering significant bottom line benefits, and source tagging is firmly at the forefront of these latest improvements.
A key source of profits
Source tagging, which involves EAS or RFID labels being applied to products during the manufacturing process, is an important example of a labelling development that is boosting profitability through improved efficiency. Ensuring security labels are correctly placed on packs is clearly important for the packaging industry but source tagging has the potential for so much more, and could result in significant benefits for the retail industry as a whole.
Improving merchandise availability
Successful retail is all about ensuring the right products are in the right place at the right time. Source tagging plays an important role in this because items arriving at stores shelf-ready can be on display and delivering profits sooner, which reduces the likelihood that items will be out of stock. Crucial to this is effective inventory management as it provides retailers with a valuable insight into their perpetual inventory.
From informing re-stocking decisions to reducing out-of-stock or overstock problems – understanding and managing inventory will not only maximise on-shelf availability but increase sales too.
Out of stocks remain critical for consumer satisfaction
Research shows how important this is when it comes to avoiding a lost sale – the Retail Feedback Group’s 2013 Supermarket Experience report shows that 46 percent of shoppers who couldn’t find an item in stock went to another store to buy it. The same research also revealed that 38 percent chose to forgo the item resulting in a lost sale for the retailer. Furthermore, out of stocks can prompt shoppers to redirect their future custom to retailers that stock the items they wish to buy.
Given that source tagging allows items to be displayed securely and attractively without delay, it shouldn’t be a surprise that it has been shown to increase sales by up to 30 per cent and reduce shrinkage by more than 60 per cent.
When it comes to successful retailing, source tagging is one part of a much bigger picture. Retailers who look to seize the opportunities offered by the latest labeling developments can ultimately improve their security, product presentation, merchandise availability and overall profitability. Combined with the investment in the latest hardware, software and data analytics, the profitability gains for retailers are set to be huge.