What is Source Tagging?

Source tagging is the application of anti-theft electronic article surveillance (EAS) labels into products or packaging during the manufacturing or packaging process so that articles arrive ready-protected at the point of sale.

What are the benefits of source tagging?

Source tagging is an integral part of the supply chain - it allows manufacturers to protect their products and provide floor-ready merchandise to their retail customers, whilst for retailers it can assist in maximising merchandising techniques, product assortments and general store operations. Source tagging can also help increase product sales and profitability by helping prevent stock loss.

Other benefits for retailers and manufacturers include:

• Reduces in-store labour costs
• Improves accuracy of inventory management
• Improves merchandising planning, forecasting and replenishment
• Increases focus on customer service
• Enables hidden tagging solutions
• Improves accuracy of electronic data input (EDI)
• Ensures taggingcompliance
• Enables packaging reductions

How successful is source tagging?

The results of a recent survey commissioned by ADT and conducted by Arthur Andersen Business Consulting in 13 CVS pharmacies over a 16-week period identified 175 items representing 11 high-theft categories. These items were tracked for eight weeks without the benefit of Ultra Max® Acousto-Magnetic (AM ) labels, then for an additional eight weeks in test locations with concealed labels to evaluate source tagging.

The study found that, on an average day, high theft items not protected against theft with Ultra Max® AM labels were 47% more likely to be stolen than those with protection. The study also revealed that unprotected items were 46% more likely to be out of stock than those protected by the labels. Andersen concluded that: “Source tagging reduces theft and contributes directly to improved gross profit for both suppliers and retailers”.