News & Events: Blog


Source tagging is the key to retailer success

Article by Ivan Gosling, European Product Manager, Checkpoint Systems


In an increasingly competitive market where profitability is key, the pressure is on for retailers and manufacturers to boost operational efficiencies throughout their supply chains. And with the online retail sector thriving and discounter revolution continuing apace, stores know all too well that their instore experience has the potential to make or break them in 2018.

In an age of ‘bricks vs. clicks’, new processes that can streamline operations and drive sales are worth their weight in gold. Source tagging may be a term you’re familiar with, but the benefits ensure profitable growth for retailers and manufacturers alike. Not only does it offer increased product protection throughout the supply chain, enabling stores to increase sales, improve in-stock rates and decrease shrink, tagging at point of manufacture has a positive effect on the customer experience, which in turn nurtures loyalty to both products and stores.

With many of today’s consumers likely to reach for their device to place an order rather than travel to the nearest high street, traditional retailers must entice customers into their stores by offering a seamless and enjoyable shopping visit.

A key way to do this is to ensure there are friendly and knowledgeable staff on hand. In fact, according to Salesforce’s Connected Shoppers report 2017, 75% of consumers say it’s ‘absolutely critical’ or ‘very important’ to interact with a salesperson who is available when they need them.

But in a busy store environment, it’s not always possible for staff to juggle back of house tasks with serving on the shop floor. This is a key benefit of our tagging @source programme – it mitigates the need for store associates to spend time manually attaching security tags or labels to products, eliminating costly in-store labour. In addition, retailers using RFID will have product information pre-encoded, facilitating the inventory accuracy improvements critical for omni channel retailing, and enabling the adoption of in store technologies.

Imagine if all your merchandise arrived at your store shelf-ready. Sales assistants would be free to engage with shoppers, and next season’s products could go on display as soon as they enter the store, rather than waiting for a suitable time to be tagged. Staff can excite customers with ‘this just arrived today!’ and mean it!

However, perhaps the most important advantage of source tagging is compliance. If tags and labels are applied to merchandise at the point of manufacture or in the DC, you have peace of mind that store staff have not placed the labels in an inappropriate place on the packaging – such as over the ingredients or even the brand’s logo – or worse still not applied one at all.

But it doesn’t end there. Today, source tagging can offer retailers even more benefits – long after merchandise has reached its destination. In the data driven world that we now live in, each @source label or tag has the potential to act as an event producer in the much fabled connected store. 

RFID-enabled source tagged items can trigger real-time alerts to store managers as soon as they are dispatched, delivered, sold, need replenishing or even if they’re stolen. These events can then be monitored through Azure cloud-based solutions like our new Halo platform, helping store managers identify problem areas, re-allocate resources effectively and meet KPIs.

Drawing on years of innovation and expertise, Checkpoint is proud to offer an unparalleled, business-focused source tagging programme that guarantees retailers an agile supply chain and a customer experience that gives them the edge on their competitors.

A market leader and true innovator, we offer an extensive label portfolio and constantly draw on our 48-year expertise and invaluable retailer feedback to ensure we create products that meet the ever-evolving needs of our customers. Whether by protecting retailers and consumers alike with our ‘first of its kind’ microwave safe food labels, or amplifying risk to potential thieves with the trademarked black lock logo which is proven to reduce theft by up to 50%.

We are pioneers in labels for hard-to-protect merchandise and offer several designs that ensure our retailers can display their products openly, allowing customers to fully interact with merchandise whilst simultaneously deterring opportunistic thieves.

But it isn’t just the labels and tags that ensure an effective source tagging programme, we also offer retailers a dedicated allocated portfolio integration manager, who works with the manufacturer and packaging plants to ensure our customer’s needs are met.