Manufacturers To Get ROI On RFID Enabled Product Promotion

Manufacturers such as Procter & Gamble and Kimberly-Clark, will soon be able to evaluate the return on investment from standards-based RFID-enabled promotions. OATSystems, Inc., ADT, a unit of Tyco Fire & Security, and Intel Corp. will provide RFID hardware, software and services necessary for a 10-store retail deployment. To help validate the ROI, an independent academic institution will establish the parameters of the study, monitor control stores and deliver a final report on the ROI.

"Improving display execution is a cornerstone of our EPC Advantaged Strategy that we initiated earlier this year based on pilot experience with our retail partners. Those pilots clearly demonstrated that the Electronic Product Code enables work processes to be fine tuned or revised to improve the efficiency and timeliness of product arriving on the store floor. Having that product available when and where the shopper expects it not only enhances shopper satisfaction but also improves sales," said Milan Turk, customer & consumer leader, Proctor & Gamble.

Trade promotion spending by manufacturers is a large budget item, representing 12%-15% of sales for most companies.

"As we continue to explore future uses of RFID technology, we expect to gain valuable insights on how to improve the effectiveness of various business applications built around scaleable standards, such as product promotions. 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," said Cheryl Perkins, senior vice president and chief innovation officer for Kimberly-Clark.

OATSystems
Intel Corp.

ADT Security Services, Inc.


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