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Procter & Gamble Halts Tagging of Promotional Displays
Managing promotional displays has been seen as one of the big benefits CPG companies have been derived from EPC tagging. The data supplied by Wal-Mart can show whether displays are in a store's back room, and when they should be moved out to the sales floor. When the displays are out on the floor at the time that a related advertising campaign is running, sell-through of the promoted products can increase by as much as 20 percent (see P&G Finds RFID 'Sweet Spot' and Wal-Mart, Suppliers Affirm RFID Benefits).
One of Procter & Gamble's contract manufacturers, who has requested anonymity, says that while P&G does utilize the EPC data it receives from Wal-Mart to direct merchandisers to stores at which there are issues getting product on the shelf, the company is frustrated that Wal-Mart's sales associates have not acted on the data in order to improve compliance with promotional programs.
P&G's managers, the contract manufacturer explains, "were asked to put the tag on and absorb the cost of that, and I think they felt Wal-Mart should be doing more to live up to their end of the bargain. Why put the tag on if Wal-Mart's not going to act on the data?"
Like P&G, Wal-Mart stresses that it continues to work with one of its major trading partners. "Procter & Gamble remains a valuable partner as we expand and develop new applications for EPC," says Dan Fogleman, a Wal-Mart spokesperson. "We cannot discuss every aspect of that partnership, but we are working toward wider implementation."
John Seaner, VP and general manager at EPCglobal US, praises P&G's commitment to validating EPC RFID applications and unlocking the technology' potential.
"For any new technology," Seaner says, "the path to ubiquity is never a straight line, and this certainly will be the case with EPC and RFID. If it weren't for the pioneering investments and visions of companies like P&G and others in the EPCglobal community, we wouldn't be seeing the breadth and richness of uses of this technology that we see today. We continue to see very valuable applications of EPC being deployed in asset tracking, work-in-process monitoring and a host of traceability applications in myriad industries, including health care, chemicals and aerospace."
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One of Procter & Gamble's contract manufacturers, who has requested anonymity, says that while P&G does utilize the EPC data it receives from Wal-Mart to direct merchandisers to stores at which there are issues getting product on the shelf, the company is frustrated that Wal-Mart's sales associates have not acted on the data in order to improve compliance with promotional programs.
P&G's managers, the contract manufacturer explains, "were asked to put the tag on and absorb the cost of that, and I think they felt Wal-Mart should be doing more to live up to their end of the bargain. Why put the tag on if Wal-Mart's not going to act on the data?"
Like P&G, Wal-Mart stresses that it continues to work with one of its major trading partners. "Procter & Gamble remains a valuable partner as we expand and develop new applications for EPC," says Dan Fogleman, a Wal-Mart spokesperson. "We cannot discuss every aspect of that partnership, but we are working toward wider implementation."
"For any new technology," Seaner says, "the path to ubiquity is never a straight line, and this certainly will be the case with EPC and RFID. If it weren't for the pioneering investments and visions of companies like P&G and others in the EPCglobal community, we wouldn't be seeing the breadth and richness of uses of this technology that we see today. We continue to see very valuable applications of EPC being deployed in asset tracking, work-in-process monitoring and a host of traceability applications in myriad industries, including health care, chemicals and aerospace."
