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Source tags provide measured security improvements

Stanley Tools houses a security label in a patented PVC capsule that clips onto the back of its tape rule package.

The patented PVC capsule that houses the security tag is manually slipped onto the tape rule?s belt clip. Because of an indentat
The patented PVC capsule that houses the security tag is manually slipped onto the tape rule?s belt clip. Because of an indentat

A man strolls into a hardware store, picks up a tape rule, rips off the packaging and hooks the tape rule to his belt. Now he looks like a contractor who walked in with the tape rule and can casually walk out of the store without arousing suspicion.

That crime was common practice in Home Depot stores across the country until the hardware chain looked into source tagging, or the placement of security labels inside a package. In fact, Stanley Tools tape rules, retailing at $10 and up, were the items most often stolen in the stores after batteries.

At first, Atlanta-based Home Depot's solution was to lock the product up in a glass case, but they felt that would limit potential sales. In 1993, Home Depot decided on a different loss-prevention strategy by implementing the Sensormatic (Boca Raton, FL) security system. Basically, it consists of Sensormatic's Ultra-Max magnetic strips placed on or inside packages.

Also essential are sensing towers at the store's doors. If a tagged item isn't scanned at the check-out counter, which deactivates the narrow band of radio frequency emitted by the tag, Sensormatic's 59"-high Pro-Max sensing towers near the store's exit sound an alarm. If two towers are set up at either end of the doorway, they are able to detect frequencies farther than 9', which is necessary at Home Depot's 8'-wide lumber doors.

Other systems could only detect as far as 6', says Ed Wolfe, vice president of loss prevention at Home Depot and co-chairperson of the Source Tagging Council, a forum for industry-leading retailers and suppliers interested in the advancement of source tagging. Several times each year, the council meets to share strategies and experiences with other companies who are involved in source tagging programs.

In November 1994, Home Depot gave notice to Stanley Tools and other vendors that they would be required to start shipping their products to Home Depot with electronic article security labels already affixed, Wolfe says.

Allen Pendergraph, senior packaging engineer at Stanley Tools, New Britain, CT, admits he was less than enthused about the idea. "Quite honestly, no one's thrilled about adding cost to a product," he says. "But it's a requirement of doing business with this customer, so we honored the customer's request." Pendergraph wouldn't quantify the added cost.

Tag in a capsule

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