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Technology
is evolving around an identification
chip called the Mini ID Chip
(about the size of a pin head),
manufactured by a company called
Ariant. The chip is used to track
a product throughout its entire
supply chain lifecycle, from product
packaging through to consumer purchase.
The chip is placed in the actual
packaging during production and
once it is scanned across the retailer's
check stand, it is deactivated.
The
major benefit of the chip to Monarch
is that it will help identify where
the theft/shrinkage is occurring
and allow Monarch to implement measures
to reduce theft/shrinkage in that
key area. The product has a variable
cost of $0.10 per chip, and a fixed
cost investment of $100,000 (machines
and scanners).
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