Promotional Placement Gets An RFID Boost

OATSystems, Inc., and ADT, a unit of Tyco Fire & Security, have announced a proof of ROI program designed to “validate the return on investment from standards-based RFID-enabled promotions and ignite the next phase of RFID deployments,” according to company officials.

Together with Intel (News - Alert) Corporation, the companies say they will provide RFID hardware, software and services necessary for a 10 store retail deployment to “help retailers track promotional products and provide critical information back to suppliers such as Proctor & Gamble and Kimberly-Clark.”

To help validate the ROI, an independent academic institution of the retailer's choosing will establish the parameters of the study, monitor control stores and deliver a final report on the ROI.

Milan Turk, Customer & Consumer Leader, Proctor & Gamble noted that “having that product available when and where the shopper expects it not only enhances shopper satisfaction but also improves sales.”

Trade promotion spending by manufacturers is a massive budget item, representing 12-15 percent of sales for most companies. Unfortunately, study after study and the day-to-day experiences of manufacturers and retailers show that the returns on trade promotions are far less than satisfactory. Real-time Promotion Execution is being billed as a RFID-centric business process that can help consumer products manufacturers and retailers to cut the odds a little more in their favor.

According to Cheryl Perkins, senior vice president and chief innovation officer for Kimberly-Clark, RFID technology, done the right way, can help. “This standards-based approach will ensure we deliver the right product solutions to the shopper at the right time - increasing the success of our product promotions,” she said.

RPE uses RFID-tagged displays and promotion product cases to measure in-store promotion execution by tracking where and when the displays and promotion inventory are in the store. Manufacturers and retailers can track when the items reach the store, when they're moved to the sales floor, and how long they are there -- all in near-real time.

“Improving promotions management and execution represents a significant supply chain opportunity for the industry,” said Bernie Hogan, chief technology officer and senior vice president, GS1 US. “A standardized EPC approach offers the best solution for retailers and suppliers by increasing collaboration between trading partners and providing unprecedented visibility into the supply chain.”

OAT Foundation Suite 5.0 supports the IBM (News - Alert) RFID Premises Server, SUN Solaris and Oracle (News - Alert), Red Hat Linux and PostgreSQL, Microsoft (News - Alert) Windows and SQL Server software platforms.

David Sims is contributing editor for TMCnet. For more articles please visit David Sims’ columnist page.

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