Speaking with your Retail Customer

• Identify product and implementation requirements for Source Tagging
• Discuss cost impact of Source Tagging and who absorbs the cost of application and the label
• Discuss the retailer’s willingness to share shrink data on specified products to better understand the impact of Source Tagging on the retail operation
• Discover opportunities for additional shelf space, end-cap promotions and cross merchandising in return for Source Tagging commitments
• Discuss dates for the commencement of Source Tagging
• Verify retailer acceptance of external application (Phase I); if packaging changes are required, identify time frame to implement changes for Phase II commencement
• Discuss retail expectations for Source Tagging on new product introductions
• Inquire if the retailer has international requirements for Source Tagging, if so, what countries
• Be aware that many retailers conduct audits for tagging compliance and performance; some even have penalties for non-conformity
• Be aware that retailers have access to certification data and use this data to confirm product certification
• Source Tagging represents only a portion of the requirements for theft prevention. Packaging changes might be required for higher security
• Discuss competitive advantage afforded due to the participation in Source Tagging

Internal Discussions and Decisions

• Initiate a directive to all sales people to discuss the retail mandates from each customer (see attached retail list) to better forecast the quantity and type of labels needed
• Identify all customers who require Source Tagging and with what technology
• Calculate a label forecast by technology and customer
• Identify the application equipment required to apply the labels
• Evaluate efficiency of packaging company application versus in-line application
• Identify the probability of the packaging company sharing the cost of application
• Obtain label quotes from EAS suppliers (annual forecast required for discounts)
• Determine label supplier and product availability
• Submit products to TAG Company’s Certification Centre
• Implement a certification plan for new products prior to final engineering and packaging efforts
• Evaluate the real cost implications of carrying dual inventories versus dual tagging. Dual tagging requires deactivation of one of the labels prior to shipment
• Determine who pays for the label, keeping in mind that sales might actually increase when products to be sold are on the shelf. An increase in revenue might offset the cost. On-hand inventory is only as accurate as a physical count when products are stolen rather than sold
• Discuss creative marketing opportunities by proactively assisting the retailer in shrink reductions. Offering to Source Tag additional products in return for promotional opportunities
• Know that Source Tagging is already happening in most of the top retail accounts
• Know that Source Tagging will not stop all shoplifting but is the leading deterrent
• Know that retailers have already made huge capital commitments by installing EAS electronics in their stores
• Know that there are only a very small number of retailers who have multiple technologies installed and in most cases the technology is country-specific