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A
meeting is scheduled with Monarch's
Senior Leadership team (C-Level
executives) and Ariant, the manufacturer
of the
Mini ID Chip, to discuss
Monarch's proposed investment.
The
Mini ID chip appears to be good
solution to product theft because
is used to track a product throughout
its entire supply chain lifecycle,
from packaging to consumer purchase.
The chip, placed in packaging during
production, is deactivated once
scanned across the retailer's check
stand.
The
chip's major benefit is that it
will help Monarch identify the key
area where the theft/shrinkage is
occurring and allow Monarch to implement
measures to reduce loss.
The
product has a variable cost of $0.10
per chip, and a fixed cost investment
of $100,000 (machines and scanners).
During the meeting, it is determined
that the initial investment in the
chip will be a pilot covering 500,000
cases (5 million units @ 10 units
per case). This number represents
the annual volume of the item suffering
the greatest loss by theft.
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