Sensormatic Solutions Network of Service Bureaus Enables End-to-End RFID Solutions Worldwide
Sensormatic Solutions, a part of Johnson Controls (NYSE: JCI), announced the expansion of its RFID Service Bureaus with a new facility in Matamoros, Mexico. This expansion enhances their global reach, providing custom-printed and encoded RFID tags and labels directly to retailers and manufacturers in North and Central America. The new service bureau complements existing facilities in Asia, Europe, and Latin America. The initiative aims to simplify source tagging, improve inventory accuracy, enhance supply chain visibility, and reduce labor demands. Previous collaborations, like with Renner in Brazil, have shown significant improvements in inventory accuracy and stockout reductions.
- Expansion of RFID Service Bureaus to North and Central America with a new facility in Matamoros, Mexico.
- Improved inventory accuracy by 64% and reduced stockouts by 87% in collaboration with Brazilian retailer Renner.
- Established global presence with RFID tagging services available in major regions including Asia, Europe, and Latin America.
- RFID technology aids in reducing out-of-stocks and markdowns, thereby potentially increasing revenue and improving gross margins.
- Automated inventory counting processes free up staff from manual tasks, leading to reduced labor demand.
- Comprehensive suite of analytics tools, including Shrink Analyzer and Supply Chain Intelligence, support predictive insights and operational improvements.
- Initial investment in RFID technology and the new service bureau might increase operational expenses.
- Dependence on the adoption rate of RFID technology by retailers and manufacturers, which can affect the ROI.
- Possible logistic challenges in direct delivery of custom-printed and encoded RFID tags and labels globally.
Insights
The deployment of RFID (Radio Frequency Identification) technology by Sensormatic Solutions offers transformative potential for retail operations. RFID tags enable precise and real-time inventory tracking, which can significantly reduce
Potential benefits: Improved inventory accuracy, reduced stockouts, enhanced operational efficiency and better supply chain visibility.
Potential drawbacks: Initial implementation costs and the need for training staff on new technology.
In short: This move is likely to have a positive impact on retail operations, leading to cost savings and improved service levels over time.
Sensormatic Solutions' expansion of RFID services to North and Central America through the Matamoros bureau is a strategic move that showcases their commitment to enhancing global service delivery. By providing source tagging services, the company is addressing critical pain points in the retail supply chain, such as inventory management and labor costs. This move positions Sensormatic Solutions as a key player in the retail technology space, with the potential to drive significant operational improvements for its clients. The success story with Brazilian retailer Renner, which saw a
Potential benefits: Enhanced market presence, competitive advantage and increased client success stories boosting brand credibility.
Potential drawbacks: Reliance on the successful implementation by retailers and potential resistance to change within client organizations.
In short: This strategic expansion is likely to strengthen Sensormatic Solutions' market position and drive long-term growth.
- The brand leverages established source tagging model to offer custom-printed and encoded RFID tags and labels with direct delivery to retailers globally
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RFID Services Bureaus are now available in every major region, following the opening of new bureau in
Matamoros, Mexico
NEUHAUSEN,
“We are intensifying our focus on leveraging our established source tagging model for both Electronic Article Surveillance (EAS) and RFID, and this service bureau is the latest example of how we can make tagging at the source a simple process for retailers and their manufacturing partners,” said Tony D’Onofrio, president, Sensormatic Solutions. “The Matamoros facility will bring that simplicity to a new group of retailers, easing adoption and giving them the precise, RFID-enabled visibility they need to refine order fulfillment, verify in- and outbound shipping, discreetly protect merchandise and more to improve their business outcomes.”
Opening Doors in New Regions
Sensormatic Solutions has always delivered quality RFID-based inventory intelligence solutions to stores, distribution centers and factories. With the RFID Services Bureaus, the capabilities expand by bringing direct delivery of RFID tags and labels to manufacturers worldwide. This helps local manufacturers and retailers to:
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Improve item-level inventory programs. RFID technology automates inventory counting processes and updates records in real-time, driving significant reductions in out-of-stocks and markdowns to grow revenue and improve gross margins. For example, the collaboration between Sensormatic Solutions and Renner led to a
64% increase in the Brazilian retailer’s inventory accuracy and an87% reduction in stockouts. - Achieve end-to-end supply chain visibility. Source-tagging (equipping merchandise with RFID tags and labels at the point of manufacturing) extends retailers’ line of sight throughout the supply chain, turning merchandise flow data into insights that empower retailers to get ahead of disruptions.
- Reduce labor demand. When merchandise arrives floor-ready, associates don’t need to spend time adding tags and labels before stocking shelves and — thanks to automated inventory tracking — staff no longer has to engage in time-consuming manual counting.
End-to-End Insight, One Responsible Party
A long-time leader in RFID-based inventory management solutions, Sensormatic Solutions can provide retailers with all the inventory intelligence tools they need to uplevel operations. In addition to offering the hardware necessary to support RFID programs, the brand also offers a top-of-the-line suite of analytics tools to support predictive insight and operational improvements.
Sensormatic Solutions innovative, cloud-based analytics software — like Shrink Analyzer, Computer Vision, Supply Chain Intelligence and more — turns tracking, point-of-sale and other operational data into insights that enable faster distribution, more accurate order fulfillment and better overall decision-making to fast forward retail operations.
To learn more, visit sensormatic.com and download our tagging service bureau solution brief.
About Johnson Controls:
At Johnson Controls (NYSE:JCI), we transform the environments where people live, work, learn and play. As the global leader in smart, healthy and sustainable buildings, our mission is to reimagine the performance of buildings to serve people, places and the planet.
Building on a proud history of nearly 140 years of innovation, we deliver the blueprint of the future for industries such as healthcare, schools, data centers, airports, stadiums, manufacturing and beyond through OpenBlue, our comprehensive digital offering.
Today, with a global team of 100,000 experts in more than 150 countries, Johnson Controls offers the world`s largest portfolio of building technology and software as well as service solutions from some of the most trusted names in the industry.
Visit www.johnsoncontrols.com for more information and follow @Johnson Controls on social platforms.
About Sensormatic Solutions:
Sensormatic Solutions is the leading global retail solutions portfolio of Johnson Controls powering operational excellence at scale and enabling smart and connected shopper engagement. Our intelligent digital operating platform – Sensormatic IQ – combines the full Sensormatic Solutions portfolio, including third-party data to deliver unmatched insights into shopper experience, inventory intelligence, loss prevention and operational effectiveness with advanced technologies, like AI and Machine Learning. This enables retailers to act on prescriptive and predictive data-driven outcomes to confidently move into the future. Please visit Sensormatic Solutions or follow us on LinkedIn, X, and our YouTube channel.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240611851902/en/
Media:
Jaclyn Messina
Sensormatic Solutions by Johnson Controls
Direct: +1 561-235-6458
Email: jaclyn.messina@jci.com
Grace Torrance
Matter on behalf of Sensormatic Solutions
Direct: +1-978-518-4504
Email: jciretail@matternow.com
Source: Sensormatic Solutions
FAQ
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