Digital Safety Point-of-Sale Activation Solution Winner of the 2017 - PowerPoint PPT Presentation

Digital Safety Point-of-Sale Activation Solution Winner of the 2017 Retail Industry Leaders Association RTECH Innovation Award WWW.DIGTAL-SAFETY.US *** DIGITAL SAFETY CONFIDENTIAL *** *** DIGITAL SAFETY CONFIDENTIAL ***

Digital Safety The Digital Revolution of Selling Products WWW.DIGTAL-SAFETY.US 2 *** DIGITAL SAFETY CONFIDENTIAL ***

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Point-of-Sale Activation (PoSA) What is PoSa?  Products are made non-functional until a one-time activation code is entered by the end customer  A one-time activation code is provided to the customer on their receipt How is PoSA done?  Products are systematically, digitally locked during the manufacturing process (embedded in firmware)  At the manufacturer, PoSA products and/or packaging are given 2 distinguishing features: • Industry accepted PoSA box mark/logo • Single-scan databar barcode (includes all GTIN information & unique product identifier) 4 *** DIGITAL SAFETY CONFIDENTIAL ***

Digital Safety Key Elements Point-of-Sale Activation (PoSA) GS1 Databar Industry PoSA Logo  Trademarked through the Loss Prevention Research Council (LPRC)  Only for use with PoSA products WWW.DIGTAL-SAFETY.US *** DIGITAL SAFETY CONFIDENTIAL *** 5

Single-Scan Serialization What is single-scan serialization?  Each individual product is made “unique” through a DiSa #  Basically a “record of sale” on a specific product  DiSa is the only single-scan solution in the industry How is this done?  At the manufacturer, packaging receives a single-scan UPC (includes all GTIN information & unique product identifier)  An application identifier (AI) and a unique DiSa # are added to the end of the existing UPC barcode  The 10 or 12 digit UPC information is for internal retailer use (price, model, etc.)  DiSa’s AI tells POS that an additional action is required  POS then references the product’s item file to see what additional action is needed  POS communicates, via secured pipe, the sale information (DiSa #, date, time) to the DiSa Data Center (DDC)  On Returns, the DDC will validate (real-time) and will return “sold” or “not sold” ** POS scanner needs ability to read AI ** POS or back-end system needs ability to communicate sold items to DiSa ** For returns validation, POS needs ability to communicate to DiSa and receive a response back in real-time Visible to POS scanner Visible to the naked eye 6 *** DIGITAL SAFETY CONFIDENTIAL ***

PoSA and Single-Scan Serialization Benefits Retailer Benefits Supplier Benefits  Open Sell (sales lift)  Open Sell (sales lift)  Reduces theft  Dramatically reduces costs (if anti-theft or serialization products are currently used)  Single-scan at POS  Eliminates multiple bar codes (single-scan)  Eliminates traditional security fixtures  Can be used to enforce authorized sales channel/release date  CGS savings due to supplier savings  Eliminates ODM partner from producing additional ‘off-line’ units for  Reduces returns fraud/warranty liability gray market sales  Product may be re-locked and re-sold  Reduces warranty liability  Supply Chain Security Consumer Benefits  Open Sell: Improved guest experience / customer satisfaction  Saves time at POS/self-checkouts due to: • No security fixture removal • Single-scan  Potential for lower cost due to supplier and retailer cost decrease  Ability to retrieve a lost activation code (website, phone, email, etc.)  Solution does not require internet or phone access for activation Sell More, Lose Less – More Efficiently 7 *** DIGITAL SAFETY CONFIDENTIAL ***

Changes for Supplier/Manufacturer PoSA Single-Scan Serialization Packaging Packaging  Single Databar barcode (can remove other barcodes)  Single Databar barcode (can remove other barcodes)  Add PoSA logo • Identify how many and location of logo’s Product Product  Firmware upgrade (DiSa Digital Protection)  No firmware integration required  Supported by DiSa (on-site) Production Production  Full DiSa integration support at factory  Full DiSa integration support at factory  Add DiSa module to burn new firmware  Add QA check  Add PoSA logo / databar Pricing Pricing   Less Expensive than current EAS standards Dramatically less expensive than current serialization providers   Dramatically less expensive than current serialization providers Insurance savings due to supply chain security  Insurance savings due to supply chain security 8 *** DIGITAL SAFETY CONFIDENTIAL ***

Current Status  Past Goals to Get ‘To Chain’: Proof-of-Concept, Trial & Test of the Technology • Goals: - Scalable - Solution Performance - Consumer Acceptance - Simple for the Store Associates  Analysis has been provided by the LPRC • 3 research papers available through ECR (Colin / Prof. Beck)  Scaled to a Nationwide Footprint, Multiple Product Categories Current Retail Engagement Coming Soon  Walmart Stores  Best Buy  Verizon  Target Stores  Lowe’s  AT&T  Sam’s Club  Meijer  Office Depot  Walmart Mexico  T-Mobile  Costco  Walmart Canada  Home Depot  REI Disruptive Technology • Consumer – Acceptance! • Store – Sales Lift!! • Offender Stories: Offenders & Victims of Shoplifting 9 *** DIGITAL SAFETY CONFIDENTIAL ***