EAS Feature
In for a TAKING SOUR OUT OF THE SOURCE
Penneys in Source protection has left many
for a pound retailers concerned about spiralling
– hard costs and disagreements between
tagging can suppliers about who ‘owns’ the
be discreet tagging process in the supply chain,
an issue that could be close to being
resolved, according to Simon Jarvis
of the Source Protection Company.
Jarvis argues that retailers have
for many years recognised the
benefits that can be achieved if
products are delivered to stores
ready “source tagged” or indeed
“source protected” to coin a phrase
tags, and the other is “EAS tag re- they will be refurbished and which is rapidly gaining currency
circulation,” says Eeles of EAS recycled to the apparel within the loss prevention
Distributors. manufacturers. J.C. Penney & Co. community.
“Both methods save money by has successfully applied the concept Ordinarily security tags are
moving the tagging process from to security by source tagging and re- applied by store staff just before
the retail store to the apparel circulating inktags on fashion they are put on shelf but this
manufacturing plant. Until now, jeans.” process is far from efficient both
the only viable source tagging Eeles argues there are a number operationally and in terms of theft
alternative for apparel is a fabric of advantages to re-circulation: prevention. By moving to source
“pouch” containing an EAS circuit • Each item arrives at the store with protection, retailers can improve
along with hiding the tag within a fully operational EAS tag affixed availability, increase sales,
swing tickets. The pouch is sewn in the proper location. guarantee consistent protection,
into the garment at the factory. At • Retailers no longer must use enhance presentation and free staff
the point of sale, tags are capital to acquire tags to focus on customers and sales,
deactivated, but the consumer must • Tags are always fixed in the proper minimise costs and simplify store
cut off the pouch before the position reducing damage and management. At the same time,
garment is worn. Introduced in the increasing till point through put as protection can be extended to cover
late nineties, these tags may be less the position of tags is standard the whole supply chain and protect
expensive than the original re- and known. against prolific as well as casual
usable hard EAS tags, but may not • Retailers save money by drastically theft.
be as effective in thwarting reducing in-store tagging labour Although source protection is
shoplifters because they are easy to costs, and transferring the cost to rightly an important objective for
spot and remove,” argues Eeles. its cheapest location – at the major retailers, it often proves to be
“The first disposable plastic EAS apparel factory. difficult to achieve with a range of
tags were tested on apparel and • All product is protected real or perceived obstacles standing
handbags during 2003. Although throughout the supply cycle from in the way for retailers and suppliers
the tags were affixed in the stores factory to store. alike.
rather than at the factory, the • Retailers would have the option of “We find that retailers and their
“throw away” concept proved including their current inventory suppliers often find themselves
interesting. Since then, a group of of hard tags – including ink tags – caught in a kind of source
department stores and speciality into the re-circulation programme, protection stalemate where both
apparel store loss prevention if desired. recognise the benefits but a
executives have been trying to • Plastic tags offer a more visible practical way forward is elusive”
persuade other retailers and level of security than sewn-in says Jarvis, a director at the Source
apparel manufacturers to embrace security labels. Protection Company.
the idea.” • Re-circulation is less expensive “Our approach is to work directly
“I believe EAS tag re-circulation, is than disposable tags. Tags with a all involved to find cost effective,
potentially the most cost effective multi-year life cycle cost less per highly practical solutions which
and most secure method of source use – even including handling work for both parties – we like to
tagging. Based upon the model costs and rebates. think that our role is to take the
successfully implemented for clothes • Re-circulation offers some sour out of source protection!”
hangers, apparel manufacturers will immunity to the impact of fuel “SPC is already working across a
affix tags, and retailers will be price increases because the retailer range of hot product sectors and
rewarded with a rebate for their neither owns nor buys tags. our unique and comprehensive
collection after they are removed at • Environmental issues are approach is being welcomed by
the point-of-sale. The tags will be minimized when compared to both retailers and manufacturers
sent to a collection centre where disposable tags. alike.” RF
ISSUE 3 DECEMBER 2008 • 29
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