RFID: RealTime Promotion Execution

OatSystems and ADT combine to deliver a real-time promotion execution process, enabled by RFID technology. RFID applied to the execution of promotions, help track the inventory used in promotions in real-time and create immediate feedback for marketers. ...

... "OATSystems, Inc. and ADT, a unit of Tyco Fire & Security, 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. Together with Intel Corporation, the companies 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.

Trade promotion spending by manufacturers is a massive budget item, representing 12%-15% 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 (RPE) is a new, RFID-centric business process that can help consumer products manufacturers and retailers to dramatically increase promotion effectiveness which may result in increased promotional sales, decreased execution costs, and greater shopper satisfaction. According to Cheryl Perkins, senior vice president and chief innovation officer for Kimberly-Clark, RFID technology can be used as a business tool to help deliver greater value to K-C and its retail customers.

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. This information is then integrated across many stores and manipulated with powerful analytic tools. Illustrated by the recently released MIT study on RFID-based promotions, this enables a new business process that is cost-effective and dramatically increases promotion sell-through, correction of poor in-store execution and promotion intelligence, and lowers the cost of promotions management. " ...

Via OATSystems: OATSystems and ADT Announce Promotions-on-Standards Program to Ignite RFID ROI: Leaders Rally Retailers and Suppliers to Validate ROI in Standards-Based Real-time Promotions Execution ...