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Sensormatic's RFID solution reduces lost inventory

Sensormatic, a business unit of Tyco Fire & Security, recently previewed its new RFID (radio frequency identification) inventory tracking solutions at the 2003 Asian Retailers' Conference and Exhibition, held in Christchurch, New Zealand in September this year.

RFID is a complete inventory management tool, which automatically captures data using radio signals. Sensormatic's inventory tracking products are directed at reducing store out-of-stocks and excess distribution centre operating costs. RFID solutions can have a significant impact on the operations of both retailers and product manufacturers.

Traditionally, retail shrinkage has been viewed as store-level employee theft and shoplifting. While theft-related shrinkage presents tremendous challenges, significant losses and missed profits also occur in the supply chain. Losses that result from inventory mismanagement, incorrect shipments, paperwork errors and perishable spoilage as well as outright theft are staggering. To help improve business operations at each of these levels Sensormatic is taking a holistic approach to technology and the solutions it provides to both its retail and consumer goods manufacturer customers, according to John Smith, Head of the Retail Solutions Group for Tyco Fire and Security.

Improving supply chain visibility

"There are tremendous opportunities for improving visibility of goods through the supply chain," Smith said. "Sensormatic's new RFID products will help companies in the retail supply chain track movement of goods, identify arrival of critical shipments and verify contents of incoming cartons. The result should be a reduction in key warehousing and distribution costs like labour expense, charge-backs, returns and theft."

Smith adds, "Sensormatic is committed to providing solid solutions that are modular, flexible, and compatible with our customers' existing technology infrastructures. Sensormatic's RFID approach is to offer solutions that work with industry-standard protocols and that allow users to expand and change their RFID network as the technology evolves."

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