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Security Overcoming the top five security labellingmyths

The security labels segment is projected to be the fastest-growing industrial labels type in this market in the next five years, driven by increased recognition among retailers and manufacturers of the added-value visible security that labels now provide


approaches the risks faced by retailers will inevitably increase. The 2016 Global Retail Forecast recently revealed that alcohol, food and electrical goods will be among the top shopliſting targets, so loss prevention measures will play a crucial role in stores across the country – especially with ever-shrinking margins needing to be protected. Despite the obvious advantages


to protecting merchandise through security labelling, there are still myths deterring retailers from investing. Here we look to address these misconceptions and highlight the benefits that are often overlooked as a result.

1. LABELLING IS TOO LABOUR- INTENSIVE By investing in an @source programme, retailers can move the non-value-added labour required to secure merchandise outside the store to the most efficient location in the supply chain – the point of manufacture or in a distribution centre. This ensures chain-wide consistency, while enabling staff to concentrate on replenishing shelves and selling products, rather than spending time applying security labels. Reputable label providers will offer full consultancy support and manage vendor relations throughout the trial and tagging period. Labels can be integrated into

ecurity is a key factor and as the Christmas period fast

existing packaging lines and proven to reduce shrink, while delivering additional benefits throughout the supply chain. These include helping to increase sales and reducing out-of- stock incidents. By streamlining operations and accelerating speed- to-shelf, retailers can reduce handling costs and aid self-service formats.

2. SECURITY LABELS FOR LOSS PREVENTION According to the ECR Group, a one per cent improvement on shelf availability can lead to a sales increase of 0.5 per cent. Loss prevention professionals can move beyond thinking that security labels are solely about theft and turn to all- purpose solutions that add value to operations. By diverting would-be thieves, more products will be available on shelves for the honest shopper to purchase, therefore increasing sales by default. What’s more, with the vast array

of RFID labels now on offer, retailers have the tools they need to enhance customer experience. RFID-based asset tracking provides the real-time status of merchandise within a business’s supply chain, allowing a retailer to identify exactly where an item is located. This solution can establish what is in the distribution centre, whether it has been placed in the store warehouse, or where on the shop floor a particular item is.

3. LABELS DETRACT FROM THE CUSTOMER EXPERIENCE Shrink due to theft represents a double-edged sword for retailers. It’s important to maintain a balance

between enticing customers through clear branding while at the same time putting off potential shoplifters. Displaying merchandise openly is proven to increase sales, but it also makes it easier for dishonest customers to steal. Label solutions are now smaller,

more accurate and more versatile than ever. By connecting product branding and security solutions, retailers can manage artwork and branding around the placement of labels. This guarantees branding messages remain prominent for the customer, with visible security messaging incorporated into the package design and the security label being placed in an optimal detection position to ensure quicker customer checkout, improving POS deactivation while maintaining customer satisfaction levels.

4. LABELS COST MORE THAN THEY ARE WORTH It is key to map out an accurate forecast of where a security label programme will deliver strong ROI, starting with understanding exactly how much you are losing today. This includes inaccurate inventory, time spent by employees trying to sort out an out-of-stock situation and lost sales when an item is not available for the shopper. The key is understanding the big picture before starting the pilot phase, and focusing on key SKUs. When it comes to costs, a fully

managed @source programme demonstrates its value quickly. Source tagging is proven to reduce external shrinkage by as much as 50 per cent, at the same time ensuring merchandise is always available and on full open display for customers. It is also worth reviewing the

challenges of store staff not correctly applying anti-theft devices. Compliance issues and time spent training staff to hand-apply in store are some of the pain points most associated with security labelling products in-store. However, if key lines are delivered to stores already security protected, retailers can streamline processes, eliminate errors, and improve staff efficiency, delivering a strong ROI across numerous areas of the business.

MOVING BEYOND A TEMPORARY SOLUTION A successful security labelling project is not a short-term solution that can be switched on and off; it should provide added value that can result in it becoming an invaluable addition to the manufacturing process and maintained throughout the products order cycle. This is a sector that has rapidly advanced and today’s technology means retailers no longer need to be deterred by myths and can confidently start working with a solution provider that can solve several specific challenges. November 2016 35

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