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RFID In Retail. Neco Can Vice President - Partner ATTEVO Inc. What is RFID?. Radio-Frequency ID Valuable business and technology tool Provides REAL TIME data capture Can replace existing technologies like the bar code. Existing Data Collection System. How Does RFID work?.
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RFID In Retail Neco CanVice President - Partner ATTEVO Inc.
What is RFID? Radio-Frequency ID Valuable business and technology tool Provides REAL TIME data capture Can replace existing technologies like the bar code
Existing Data Collection System How Does RFID work? An RFID system is a reader and a tag communicating over the air at a certain frequency.
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 Chain • Retail Applications • Vendor Applications • Logistics Applications • Receiving Applications • Store Inventory Applications • Customer Service Applications
1. Creating a Data Carrier 2. Manufacturers Encoded data stays with product during lifecycle RFID tags are shipped to Manufacturers To attach to merchandise Tags are attached to merchandise items RFID IN THE RETAIL SUPPLY CHAIN • 3. Transport • Cargo Security • Cargo Tracking 4. Distribution Center 5. Retail Store Pallet & “Container” tags Retail Applications –RFID Vision for a Retailer Factory De-consolidator Distribution Centers Logistics Stores Freight forwarder/ consolidator
Vendor Applications • Apply RFID tag to unit • RFID tag sewn into unit • RFID tag within current • hang tags
Units Carton Pallet Logistics Applications See What’s Inside Without Opening! Container
Existing Data Collection System Receiving Applications • Multiple tags • Read and write • Unit or container level • No orientation issues • 100% vendor audit for quantity
DOCK 4 8 ft. 10 ft. Existing Data Collection System Shipping Applications • Doorway • coverage • Identifies units, • cartons, pallets • Identifies forklift • Removes • operator error
Units Shelf Area Store Store Inventory Applications Back Room Monitor Increments, Decrements Shelf Inventory Store visibility at the unit level Keep correct sizes stocked Take inventory
Units Shelf Area Store Customer Service Applications Search for specific size: ..Sales floor, Up stock, Backroom Audible indicator when select unit is scanned Store Shelf Denim Reduction in Lost Sales!
…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
Executive Ownership ROI RFID Pilot Proof of Technology Business Case As-Is and To-Be Process
Retailer 1 - Pilot Results • DC to Store Shipping and Receiving Accuracy • 96% accuracy from allocation to pick 97% accuracy from picking to shipping (see graph) • 100% tracking from warehouse to store
Retailer 1 - Pilot Results • 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 Retailer 1 - Pilot Results • Khaki Sales to Denim Sales Comparison • Tracked the sales of select Khaki SKUs to determine sales trends for each store • Khaki did not have RFID tags in any store 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 Retailer 1 - Pilot Results • Sales Floor vs. Backroom Stock Levels • Weekly audits in the control stores - floor vs. backroom • Average 12% of Adult Denim SKUs are out-of-stock on sales floor but available at backroom in the control stores - as high as 85% by style • In some cases, multiple audits indicate the same SKU is out-of-stock on the sales floor but available in the backroom for 21 consecutive days • During same time period the pilot store maintain perfect sales floor inventory
Retailer 2 - Pilot Results • Denim Only • RFID Tags attached at vendor and SKUs assigned at DC receiving • Simple SKU-RFID relationship • Stores know only what they should have • No changes on legacy systems • Tracking vendor compliance, DC accuracy and store replenishment • Payback justification - seven additional unit sales per month per store • Pilot stores are showing additional 13 unit sales per store per week • Store accuracy is over 98%
Questions Contact info: ncan@attevo.com 614-446-1234