December 20, 2005
Item-level tagging
According to AMR Research, item-level tagging has the potential to provide enterprises with major savings. Correct management of item-level tagging and intelligent targeting of product categories for tagging can result in major improvements in stock availability.
Savings can also be had by reducing the labor requirements for replenishing the products on the racks. AMR states that categories such as VCD’s and DVDs, high-cost fashion accessories, and easy to duplicate products such as drugs are ideal for item-level tagging. Reduced stockouts on these items mean more sales and a healthier bottom-line.
Items such as DVDs that attract a high traffic during the early weeks of their life-spans need to be available at those times, almost 70% of a DVD’s total sales occur during the weeks that follow its release. For item-level tagging to succeed, it is important that readers be placed strategically for issuing alerts on empty shelves and checking the store for replenishment.
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