1 / 33

Omnichannel And IoT: The Perfect RFID Storm

Omnichannel And IoT: The Perfect RFID Storm. Presented by. Sponsored by. About CCS 2014. 7 Webinars, 4 Days Sessions covering Store Ops, X-Channel, Loyalty, Big Data & more. Featuring industry analysts and consultants Free for Retail executives.

erasmus-ewing
Download Presentation

Omnichannel And IoT: The Perfect RFID Storm

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Omnichannel And IoT: The Perfect RFID Storm Presented by Sponsored by

  2. About CCS 2014 • 7Webinars, 4 Days • Sessions covering Store Ops, X-Channel, Loyalty, Big Data & more • Featuring industry analysts and consultants • Free for Retail executives http://ccs.retailtouchpoints.com/holiday-2014

  3. Follow The Webcast On Twitter #HolidayCCS @ConnectConsumer@RTouchPoints

  4. About Retail TouchPoints • Launched in 2007 • More than 28,000 subscribers • Provide executives with relevant, insightful content • Free Resources such as White Papers, E-book, Webinars, Research and Podcasts www.RetailTouchPoints.com

  5. BrightTALK

  6. Today’s Panelists John-Pierre Kamel Principal RFID Sherpas Richard Mader Director Emeritus, ARTS MODERATOR Debbie HaussEditor-in-ChiefRetail TouchPoints

  7. What Does RFID Look Like? • Usually involves a handheld reader • Rapid cycle counts of inventory • Number of counts depends on product category, Use Cases • Does not need to update inventory…but should for best results Photo Source: Motorola RFID Sherpas. Confidential. Not for distribution.

  8. RFID Solution Components RFID Readers RFID Tags Paper Ticket Adhesive Label Hard Tag Sewn-In Label RFID Sherpas. Confidential. Not for distribution.

  9. A Quick Recap Of Item Level RFID in Recent Years 2008 - 2010 2010 - 2012 2013 - 2014 • Round Rock Patent issues resolved • Companies open up about successes • Expansion into Fashion • Luxury segment growth • Uptick in European deployments (e.g. Asda, Decathlon, M&S) • Omni-Channel is a driver of RFID adoption • Display compliance drives fast ROI • Expansion beyond replenishment into jewelry • Item level projects picking up steam • Testing new categories, focused on replenishment • Department Store focus

  10. 2008-2012

  11. 2008-2012

  12. 2013-2014

  13. 2013-2014

  14. 2013-2014 “Implementation of this next-generation technology is one of the most significant changes ever in how the Group’s stores operate.” Pablo Isla Chairman & CEO July 2014

  15. Latest News from Macy’s (2014) • RFID-enabled departments outperformed controls by 10% from 09-2013 to 05-2014 • Advanced program beyond Replenishment and into several Fashion categories • Timely replenishment of the sales floor is now an objective, in addition to inventory update • The ability to make single unit SKUs available to online shoppers has been a big win in Omni-channel • Decreased the number of undisplayed SCCs in the Footwear and Luggage to under 5%, compared to 25-30% pre-RFID

  16. RFID’s Appeal To Retailers Margin contribution from increased Full Price Sell-Through Margin contribution from higher Unit Sales Reduced shrink (internal & external) Labor productivity improvements Less working capital tied up in Inventory Repurposing of Loss Prevention budget dollars Aligns with Omni-Channel, Mobility initiatives

  17. RFID in Retail • Long time coming, since late 1990’s • Cost vs. Benefit • Shortage • Out of stock • Other priorities • Y2K • E-commerce

  18. The Silver Bullet Consumer Centric Retail And Omni Channel

  19. Omni Channel Serving the customer as they desire. • Features: • Buy on line, pickup in store (44% to 58%) • Buy in one store, ship from another (Urban Outfitters) • Buy items in store plus items via on-line device in store and pay one sale • Fulfill E-commerce order from stores.

  20. Why Omni Channel • John Lewis experienced a 22.6% increase in on-line sales during Christmas 2013. Accounting for 31.8% of total Christmas sales as click and collect orders were up by 61.8% over previous year. (ComputerWorld.com) • Macy CEO Terry Lundgren said at Goldman Sachs conference this month that they can ship direct to customers from all stores, and that pick-up in store results in 125% of intended order. (Marketing Daily)

  21. Omni ChannelCritical Success factor • Nearly 100% accurate item level inventory • Cannot disappoint the Customer • Drive to store purchased item not available • Buy on line never receive at home • It can happen (THD example) • Cost of buffer stock offsets sales gains What level of risk are you willing to accept?

  22. SKU Inventory Accuracy • Industry average approximately 70% • Thanks to Bar codes for sales recording. • RFID can improve to 95+% • 98% per Checkpoint • 27% improvement per RFID Research Center Assume 100 customer store pick ups, RFID changes 25 of these to these

  23. SKU Inventory Retain Accuracy • Physical Inventory • Auburn University 20,000 items per hours using RFID vs. 500 via barcodes. • Staff Discipline • Train processes • Monitor to enforce

  24. Key RFID Use Cases Within The Four Walls On-Floor Availability Display Compliance Reduce Out-of-Shelf Asset Protection Outside of the Four Walls Out-of-Stocks Eliminate Frozen Inventory Planning and Allocation • Omni-Channel Support • Interactive Retail • Inventory Accuracy • Reduction/Elimination of Manual Stock Counts • Anti-Counterfeiting • Anti-Diversion • Supply Chain Visibility

  25. Increase the “universe of product” you can make available across all channels Reduce buffer stock as low as possible for In-Store Pick-up and Store-to-Store transactions Significantly decrease decline rates of Fulfill-from-Store transactions, thereby decreasing split ships and extra labor of searching in multiple stores Enhances Omni-Channel

  26. Enhances Omni-Channel • Increase Store-to-Store orders by ensuring all available SKUs/SCC are displayed for sale, even if it is a onesie • Can significantly compress the window between purchase and pickup • Accuracy enhances mobility capabilities and allows for more efficient location based selling and alerting

  27. Internet of Things (IoT)

  28. IoT Value to Retail • 1.76 Trillion less than 50% realized (Cisco) • Opportunities • Omni order and pay anywhere • Intelligent pricing (Shelf labels) • Product movement • Equipment monitor and control • Tailored promotions • Customer service (Wi-Fi in store)

  29. Concerns • Privacy • Mobile and RFID, NFC one standard? • Active Tags, $2 vs. $.05 • Self driving cars

  30. Things I’d Like (TiL) • Find my “stuff” (Tile) • Clean out the “Frig” • Instructions for use

  31. Q&A

  32. Q&A John-Pierre Kamel Principal, RFID Sherpas Richard Mader Director Emeritus, ARTS MODERATOR Debbie HaussEditor-in-ChiefRetail TouchPoints

  33. Thank You For Joining Us The next Holiday Connected Consumer Series session…

More Related