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Inventory accuracy, out-of-stocks, item location, price management, promotions execution, internal shrink and vendor fraud represent ongoing challenges that negatively impact retailer profitability. In today's changing retail environment retailers need to incorporate more intelligent and integrated technologies into their existing investment to enhance the customer shopping experience and improve product availability while limiting shrink and lowering costs.

As a leading industry provider of integrated retail solutions - from Electronic Article Surveillance (EAS), item level source tagging, store data analytics and item-level intelligence (ILI) / radio frequency identification (RFID) - Sensormatic protects billions of in-store items. Traditionally a loss prevention company, Sensormatic now helps retailers address their most significant form of loss - decreased sales due to inventory inaccuracies.

EAS and RFID are complementary technologies that can provide retailers with several approaches to preventing theft while improving the quality of item-level data.

Retailers are recognizing that dual EAS/RFID functionality addresses both item-level security and item-level visibility. Sensormatic also understands that some retailers may choose to deploy a sequential, layered technology approach.

Sensormatic is focused on operational improvements on the retail selling floor. Inventory accuracy is an example of improved operational efficiency and begins with an understanding of the conditions under which errors occur and ends with error-resistant processes, intelligent use of technology, a well-trained and highly motivated workforce, and an ongoing process of continuous improvement. Our family of item-level RFID solutions enables information accuracy that drives intelligence back into the supply chain by improving the integrity of the data at the item level. This intelligence improves existing store operations, increases product availability, and enhances the customer's shopping experience.

Sensormatic strengthened its item-level RFID technology platform with the recent acquisition of Vue Technology, Inc. (Vue), offering retailers greater operational efficiency capabilities with Vue's in-store RFID technology. As a leading provider of item-level RFID software and infrastructure solutions, Vue builds on Sensormatic's strategy to offer integrated technology solutions to address the major challenges facing our retail customers. Vue's item-level RFID technology includes a full software platform, RFID readpoints and RF networking devices to track inventory on a real-time basis.

The integration of Vue's RFID infrastructure into Sensormatic's portfolio of loss prevention hardware solutions and other sensor technologies will enable retailers to deploy RFID at the store level to gain better control, security and visibility into their inventories and increase operational efficiencies. Sensormatic's growing portfolio of smart sensor technologies combined with Vue's focus on delivering retailers the most scalable, reliable and ROI-driven RFID solutions will help the acceleration and the adoption of item-level RFID technology. Offering retailers greater visibility throughout the retail environment enables them to drive increased profitability and revenues.

Let's explore the four key business drivers for implementing item-level RFID solutions: