RFID In Retail Neco Can Vice President - Partner ATTEVO Inc.

RFID In Retail

Neco CanVice President - Partner ATTEVO Inc.

What is RFID?What is RFID?

Radio-Frequency ID Radio-Frequency ID

Valuable business and technology tool Valuable business and technology tool

Provides REAL TIME data captureProvides REAL TIME data capture

Can replace existing technologies like the bar codeCan replace existing technologies like the bar code

Radio-Frequency ID Radio-Frequency ID

Valuable business and technology tool Valuable business and technology tool

Provides REAL TIME data captureProvides REAL TIME data capture

Can replace existing technologies like the bar codeCan replace existing technologies like the bar code

How Does RFID work?How Does RFID work?

IntermecUAP-2100

IntermecUAP-2100

IntermecUAP-2100

IntermecUAP-2100

Existing Data Collection System

An RFID system is a reader and a tag communicating over the An RFID system is a reader and a tag communicating over the

air at a certain frequencyair at a certain frequency.. An RFID system is a reader and a tag communicating over the An RFID system is a reader and a tag communicating over the

air at a certain frequencyair at a certain frequency..

Why Implement RFID?Why Implement RFID?

RFID technology gives us the ability to identify the location of each and every item without having to see it physically offering tremendous insight into inventory.

The results Ability to provide the right product in the right place at the right time due to almost perfect data integrity.

The benefits Significant increases in:

Cost Savings Competitive Advantage Customer Satisfaction

Security

RFID Applications- Retail Supply ChainRFID Applications- Retail Supply Chain

•Retail Applications

•Vendor Applications

•Logistics Applications

•Receiving Applications

•Store Inventory Applications

•Customer Service Applications

Retail Applications –RFID Vision for a Retailer Retail Applications –RFID Vision for a Retailer

FactoryFreight

forwarder/consolidator

De-consolidator

Distribution Centers

Logistics Stores

4. Distribution Center

3. Transport•Cargo Security•Cargo Tracking

1. Creating a Data Carrier

Pallet & Pallet & ““Container” Container”

tagstags

RFID tags are shipped to ManufacturersTo attach to merchandise

RFID IN THE RETAIL SUPPLY CHAIN

2. Manufacturers Encoded data stays

with product during lifecycle

Tags are attached to merchandise items

5. Retail Store

Vendor ApplicationsVendor Applications

•Apply RFID tag to unit

• RFID tag sewn into unit

• RFID tag within current hang tags

Logistics ApplicationsLogistics Applications

Carton

Units

Pallet

Container

See What’s Inside Without Opening!

IntermecUAP-2100

IntermecUAP-2100

IntermecUAP-2100

IntermecUAP-2100


Receiving ApplicationsReceiving Applications

• Multiple tags• Read and write• Unit or container level• No orientation issues• 100% vendor audit for quantity

DOCK 4Intermec

UAP-2100

8 ft.

10 ft.

IntermecUAP-2100

IntermecUAP-2100

IntermecUAP-2100


Shipping ApplicationsShipping Applications

•Doorway coverage

•Identifies units, cartons, pallets

•Identifies forklift

•Removes operator error

Store Inventory Applications Store Inventory Applications

Back Room Monitor

Increments, Decrements

Shelf Inventory

Shelf

Units

Area

Store

Store visibility at the unit level Keep correct sizes stocked Take inventory

Scanning Backroom Scanning Backroom

Customer Service Applications Customer Service Applications

Store Shelf

Denim

Shelf

Units

Area

Store

Search for specific size:..Sales floor, Up stock, Backroom

Audible indicator when select unit is scanned

Reduction in Lost Sales!

Customer Service Customer Service

Restocking Restocking

……And The Rest of The Benefits And The Rest of The Benefits

Mass scan at checkout

Loyalty cards

Returns

Order on internet pick up at the store

Customer family sizes

Wish list data

Credit cards

Possible elimination of bulky sensormatic tag

Enable EAS on more units

Allow identification of loss at unit level

Business Case Business Case

RFID

Pilot

ROI

Proof of Technology

Executive Ownership

As-Is and To-Be Process

Retailer 1 - Pilot Results Retailer 1 - Pilot Results

96%

97%

93%

91%

92%

93%

94%

95%

96%

97%

Allocation vsWMS

WMS vsActual

Allocation vsActual

• DC to Store Shipping DC to Store Shipping and Receiving and Receiving AccuracyAccuracy• 96% accuracy 96% accuracy

from allocation to from allocation to pick 97% accuracy pick 97% accuracy from picking to from picking to shipping (see shipping (see graph)graph)

• 100% tracking 100% tracking from warehouse to from warehouse to storestore


•Store Inventory Accuracy

•Over 99.6% store inventory accuracy

•“Nearly Perfect Sales Floor Inventory”

•Replenishment reports are generated every hour

•Identified SKUs needed for floor as soon as the cartons received to maintain perfect inventory levels on sales floor

•Over 50% of the replenishment flow - back door to sales floor


Khaki Sales

Denim Sales

0

20

40

60

80

100

120

12-May 19-May 26-May 2-Jun 9-Jun 16-Jun 23-Jun 30-Jun 6-Jul 13-Jul

Store C Store B Pilot Store

0

50

100

150

200

250

300

350

5/5/2001 5/19/2001 6/2/2001 6/16/2001 6/30/2001

Store C Store B Pilot Store

• Khaki Sales to Denim Sales Khaki Sales to Denim Sales ComparisonComparison• Tracked the sales of Tracked the sales of

select Khaki SKUs to select Khaki SKUs to determine sales determine sales trends for each storetrends for each store

• Khaki did not have Khaki did not have RFID tags in any RFID tags in any store including pilotstore including pilot

• Denim Sales Activity-As a result of nearly perfect data integrity and timely sales floor replenishment, initial Data Indicates over 5% increase in Adult denim sales when compared to control stores.


Mens

Women's

0

5

10

15

20

25

Audit 1 Audit 2 Audit 3 Audit 4 Audit 5 Audit 6 Audit 7 Audit 8 Audit 9

Store B Store C

0

5

10

15

20

25

Audit 1 Audit 2 Audit 3 Audit 4 Audit 5 Audit 6 Audit 7 Audit 8 Audit 9

Store B Store C

• Sales Floor vs. Backroom Stock Sales Floor vs. Backroom Stock LevelsLevels• Weekly audits in the control Weekly audits in the control

stores - floor vs. backroomstores - floor vs. backroom• Average 12% of Adult Denim Average 12% of Adult Denim

SKUs are out-of-stock on SKUs are out-of-stock on sales floor but available at sales floor but available at backroom in the control backroom in the control stores - as high as 85% by stores - as high as 85% by style style

• In some cases, multiple In some cases, multiple audits indicate the same audits indicate the same SKU is out-of-stock on the SKU is out-of-stock on the sales floor but available in sales floor but available in the backroom for 21 the backroom for 21 consecutive daysconsecutive days

• During same time period the During same time period the pilot store maintain perfect pilot store maintain perfect sales floor inventory sales floor inventory


• Denim OnlyDenim Only• RFID Tags attached at vendor and SKUs assigned at DC RFID Tags attached at vendor and SKUs assigned at DC

receivingreceiving• Simple SKU-RFID relationshipSimple SKU-RFID relationship• Stores know only what they should haveStores know only what they should have• No changes on legacy systemsNo changes on legacy systems• Tracking vendor compliance, DC accuracy and store Tracking vendor compliance, DC accuracy and store

replenishmentreplenishment• Payback justification - seven additional unit sales per month Payback justification - seven additional unit sales per month

per store per store • Pilot stores are showing additional 13 unit sales per store per Pilot stores are showing additional 13 unit sales per store per

week week • Store accuracy is over 98%Store accuracy is over 98%

Questions Questions

Contact info:[email protected]

614-446-1234

RFID In Retail Neco Can Vice President - Partner ATTEVO Inc.

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