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Case Studies

Checkpoint Systems’ long-term partnership with Coveris connects product branding with security solutions to bolster its position as source tagging leader

The retail industry has been recovering well from a period of economic downturn, in which opportunistic thieves took advantage, leading to supermarkets facing a rising risk of theft. The Global Retail Theft Barometer revealed that some of the most stolen items included meat and cheese. Consumer confidence is on the up and in a generation of convenience and price driven retailing, consumers are demanding the ability to pick up products and leave the store quickly and product protection solutions should play a fundamental role in evolving retail operations.

 

Shrinkage represents a difficult balance for retailers to uphold. It’s important to maintain a balance between enhancing customer experience and minimising loss as a result of theft. Retailers understand the importance of displaying merchandise openly, as it is proven to increase sales. However, it also can make it easier for dishonest customers to steal items.

Retailers are now increasingly turning towards source tagging, realising its benefits such as operational savings, increasing a products speed to shelf, ensuring on shelf availability and ultimately improving sales. The method is becoming more popular in the retail sector because it not only solves the issue of security, but also ensures it is implemented in a way that does not affect the packaging of the product.

Developing a truly integrated solution

Checkpoint Systems Inc. a world leader in availability and security solutions for merchandise, underlines its credentials as the industry leader in source tagging following a long-term partnership with Coveris, the UK’s leading manufacturer of multi-format packaging solutions for the private label fresh and chilled food sector.

Checkpoint and Coveris work together to source tag grocery retail product lines, predominantly focusing on meat, fish and poultry, beers, wine and spirits and health and beauty products. The partnership has strengthened both businesses position in the industry, and has resulted in extended projects with large grocery retailers to source tag a variety of product lines.

The relationship provides retailers with a unique service in which product branding and security solutions are connected. Coveris manage retailer’s artwork and branding around the placement of the covert tags before providing a composite printed label solution to ensure marketing messages remain prominent and consistent on the supermarket shelf. In turn, Checkpoint provide the radio frequency (RF) security tag which is inserted behind the label at the point of manufacture as well as a specialist source tagging team who will visit the retailer, evaluating their operations to understand how the procedure can fit in with each suppliers’ unique processes. The labels, which are deactivated by staff when the item is bought or scanned combine with Checkpoint’s electronic article surveillance (EAS) antennas – which are installed at store entrance/exits –provide an innovative and efficient means of product protection, as well as added operational efficiencies along the supply chain.

Kevin Dudman, Group Packaging Development Manager for Technology at Coveris, said: “Our partnership with Checkpoint has been hugely beneficial for both businesses. We’ve been able to offer retailers a one-stop-shop that fulfils their labelling and security needs.

“As retailers are emerging from the economic downturn and the swelling growth of the discounter, reaching the profit line has becoming increasingly more difficult. Therefore, protecting product has never been so important, and Checkpoint and Coveris offer the ideal solution to do so.”

Why source tagging?

The benefits of source tagging products are multifaceted. Many UK stores require staff to apply anti-theft devices to merchandise manually before they are placed on display. Whilst being a vital process, if accumulated over the period of a year, it can amount to days if not weeks of manual labour per member of staff.

Neville Payne, Vice President MAS UK at Checkpoint Systems, adds: “Today’s retail industry demands speed, quality, precision and brand protection. In such a competitive market, retailers need to look for solutions that will give them an edge. Source tagging products can add real value to a retailer’s overall operation and ultimately enhance an experience that will encourage consumers to keep coming back again and again.”

Staying one step ahead in a competitive marketplace

The source tagging service offered by Checkpoint in collaboration with Coveris enables retailers to add value to their operations, giving them an advantage in a competitive market. Stores receive items from Coveris that visually have chain-wide consistency, while enabling staff to concentrate on selling products, rather than labelling them. The sourced tagged product lines are security protected before receipt at store, allowing sales assistants to replenish items quicker – ensuring merchandise is always available for customers to purchase and, most importantly, staff can spend their time helping the customer and enhancing the in-store experience.