Magnet: Extended barcode

2023: RSC Technology Maschabbing

On June 20, 2023, Magnit announced that it was scaling the use of extended barcode (RSC) technology, which, unlike the standard one, contains information about the shelf life of the product. This solution will help increase the availability of goods on the shelf, optimize labor costs for monitoring shelf life in stores, and reduce losses and markdown costs. The first participants in the RSHK technology scaling project were Russian food producers, including the Cherkizovo and EFKO groups.

Earlier, Magnit introduced a technology for checking the shelf life of labeled dairy products at the checkout using the Honest Sign system. Extended barcode technology will block sales of not only labeled products, but also other products if their expiration date has expired. Vendors can connect to a project for all items with a fixed shelf life that require a specific storage temperature. In addition, the RShK technology allows you to control the shelf life of goods at the time of their receipt into the network and more efficiently manage inventory in warehouses and stores.

Instead of the usual barcode, the supplier applies an extended code to the package with additional information - the expiration date. In addition, such a code can contain information about the date of production of the product, its weight or size, and batch number. The PCCs used comply with international standards and are read by the most common types of scanners.

As part of the pilot project, the use of RSC technology helped to increase the availability of goods on the shelf by eliminating virtual balances and reduce write-offs. As the results of the pilot showed, these improvements made it possible to increase sales by an average of 2%, and in some categories - by 8% compared to the indicators before the introduction of the RSC technology.

As of June 2023, more than 20 suppliers of poultry meat, meat gastronomy and dairy products are connected to the project. It is estimated that another 100 suppliers will join the project by the end of the year.

2020: Magnit unveils technology that blocks sale of expired purchases at checkout

At the end of October 2020, Magnit announced the development and implementation of technology that will help the retailer fight delays and write-offs. The system will increase sales, consumer loyalty and profitability by increasing the availability of goods on the shelf, optimizing labor costs to control shelf life in stores, reducing losses and costs of markdown and blocking sales of expired products at the checkout.

By the end of October 2020, 17 suppliers of poultry meat, meat gastronomy and frozen products are participating in the pilot - a total of 225 commodity items.

The project consists in the fact that instead of the usual short-term code, the supplier applies an extended code to the packaging with additional information - the expiration date.

Magnit has developed and implemented technology that blocks the sale of expired purchases at the checkout

The extended barcode will help suppliers ensure that the product is available on the shelf and increase sales, since the replenishment system will order fresh goods for stores in a timely manner. The normal system generates an order the next day after the expired goods are written off, and fresh goods arrive in the store only at the time of the next delivery from the distribution center. The extended barcode will allow you to arrange the process so that by the time the goods are written off in the store, a fresh product will arrive at the retail facility.

Before the launch of the project, Magnit tracked with what shelf life the goods arrive at the store, but it is not known what product the buyer purchased with what shelf life: by default, it was assumed that the "oldest" goods were sold, although this is often not the case.

As a result, it is not always possible to prevent write-offs using existing markdown tools. When we more accurately understand the volumes and shelf life of problematic positions, we will be able to offer the optimal discount and a method of markdown, "explained Alexander Vakhtin, director of pricing and support for category management at Magnit.

The project covers the Volzhsky, Moscow, Ural and Southern regions, a total of more than 1000 chain stores. It is assumed that thanks to the new technology, Magnit can save hundreds of millions of rubles a year.