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Does EAS = RFID? |
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| Does EAS = RFID? |
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The retail market is not homogeneous and customers will require a range of EAS and RFID solution sets. For that reason, Sensormatic is developing a cost-effective, simple and scalable infrastructure that will integrate multiple sensor technologies, including EAS, item level-RFID, traffic sensors and digital CCTV. Due to our layered technology approach, this platform is capable of delivering customized solutions and unique benefits based on retailers’ specific operational needs. For example, some retailers may choose to deploy stand-alone Ultra•Max® AM EAS for security or RFID for inventory visibility, while others will implement a mix of EAS and RFID for security and inventory management.
With the introduction of the breakthrough Sensormatic iREADTM platform that significantly lowers the cost and complexity of item-level solutions deployments by eliminating separate power, control and data distribution infrastructures, our focus shifts on making sure we have a smart appropriate infrastructure no matter which technology the retailers chooses. Supporting our commitment to open RFID standards and solutions, the platform connects to any UHF RFID reader meeting the EPCglobal Gen 2 standards. Due to its modularity and flexibility, the platform can be adapted to most shelf and display configurations used by the retail industry. Karstadt Warenhaus GmbH is currently piloting our item-level iREAD platform for apparel inventory visibility, faster inventory management and price markdowns.
Sensormatic has deployed RFID solution in a variety of applications, including supply chain management, item-level apparel, and asset tracking with leading global retailers. Sensormatic has two of the world’s 8 EPCglobal-certified RFID labs that support these deployments and we’ve partnered with many leading companies within the RFID industry.
In conclusion, RFID will not replace EAS in most environments. Sensormatic customers will be able to leverage our common multi-sensor infrastructure to deploy both solutions. |
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Questions to Consider |
Sensormatic EAS is a proven technology that continues to reduce shrinkage for 80% of the top 200 global retailers that use EAS. We expect retailers to continue to invest in EAS in the next decade as currently, there is no other proven item-level technology that can provide similar security benefits and return on investment (ROI).
At the same time, we recognize that retailers are looking for integrated, data-driven in-store solutions that can help them measure, manage and, ultimately, improve store operations. In the coming years, retailers will increasingly invest in solutions that don’t just reduce shrinkage, but also provide additional capabilities like remote diagnostics and service, operations applications such as store traffic tracking, exception-based reporting with integrated digital CCTV that identifies areas of higher inventory losses (including employee theft), and cashier training issues or improper EAS tagging procedures. Many of these integrated solutions will be based on EAS infrastructures.
Sensormatic SmartEAS and Retail Expert solutions are already delivering these new capabilities to its customers through IT integration and open standards. Major retailers around the world rely on Sensormatic solutions to capture both security and operational benefits such as:
- Better understand reasons for EAS alarms, their frequency and how their store personnel addresses them
- Ensure source tagging compliance
- Capture traffic counts and conversion rates
- Identify areas of potential shrinkage and operational improvements
- Address cashier training issues
- Identify employee, vendor and inventory shrink
Sensormatic’s EAS expertise combined with our data analytics and business intelligence capabilities make us uniquely positioned to deliver smart sensor and data technologies that will improve store performance and give retailers competitive advantage.
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Sensormatic has significant experience and history of continuous innovation in both EAS and RFID. Item-level tagging is our core competency. We place over 6 billion security labels on retail merchandise every year, three times the volume of our nearest competitor.
Over the past decade, we’ve developed expertise in a wide variety of item-level technologies, including acousto-magnetic, electro magnetic, radio frequency, microwave, and RFID. This broad and deep background in these technologies led us to develop AM EAS (58 kHz) as a superior solution for item-level security. Unlike other item security technologies, it provides the most robust performance in uncooperative (high-theft) environments and works on items containing liquids and non-ferrous metals. For that reason, AM EAS remains our core offering for anti-theft protection and item-level security. RFID is an enabling technology to provide item visibility for inventory management.
There is no practical link between other item level EAS security technologies and RFID. Beyond being in a frequency spectrum, EAS has nothing in common with RFID.
While it is technically feasible to combine EAS devices with UHF RFID to deliver dual EAS and RFID functionality, a parallel RFID infrastructure still has to be deployed to read UHF in either case. Because AM EAS and UHF RFID are so far apart in the frequency spectrum, dual tagging can occur without interference and they are easier to integrate.
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“With ADT’s Sensormatic iREAD RFID platform, initial deployment was easier than it otherwise might have been and ongoing operating costs are lower. When we add in all the other benefits, we expect it will help tip the balance toward a positive ROI much faster.”
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Rainer Jilke
Departmental Head of Process Organization Purchasing
and RFID Manager
Karstadt Warenhaus GmbH |
There is no single migration path from EAS to RFID. Rather, we foresee different needs-based scenarios where some retailers can benefits from combined EAS-RFID functionality whereas others may require a sequential approach.
Our shared network infrastructure design, layered technology approach and low cost item-level platform can significantly reduce the cost of RFID deployments. For example, our Sensormatic item-level iREAD platform delivers the lowest cost per read point in the industry.
Depending on the existing infrastructure, a migration path would consider the following factors:
- Breadth of the RFID implementation,
- Price and velocity of items to be tagged,
- Cost of EAS versus RFID tags,
- Frequency of out-of-stock events,
- Ability of retailer’s information infrastructure to manage the increasing flow of RFID data.
Sensormatic is ready to work closely with retailers to deliver EAS and RFID solutions that meet their business objectives and return on investment requirements.
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