Omnichannel And OoT: The Perfect RFID Storm
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The document discusses how omnichannel retailing and the Internet of Things are driving increased adoption of RFID technology in the retail industry. RFID allows retailers to achieve near 100% inventory accuracy across physical and online channels, addressing a critical need for omnichannel. It also enhances other areas like in-store availability, supply chain visibility, and interactive retail experiences. While concerns remain around standards and costs, RFID combined with IoT opens opportunities to further improve the customer experience.
Omnichannel And OoT: The Perfect RFID Storm
- 1. Omnichannel And IoT: The Perfect RFID Storm Presented by Sponsored by
- 2. About Holiday CCS 2014 ü 7 Webinars, 4 Days ü Sessions covering Store Ops, X-Channel, Loyalty, Big Data & more #HolidayCCS ü Featuring industry analysts and consultants ü Free for Retail executives http://ccs.retailtouchpoints.com/holiday-2014
- 3. Follow The Webcast On Twi=er #HolidayCCS #HolidayCCS @ConnectConsumer @RTouchPoints
- 4. About Retail TouchPoints ü Launched in 2007 ü More than 28,000 subscribers ü Provide executives with relevant, insightful content ü Free Resources such as White Papers, E-book, Webinars, Research and Podcasts www.RetailTouchPoints.com #HolidayCCS
- 6. Today’s Panelists Richard Mader Director Emeritus, ARTS #HolidayCCS Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR John-Pierre Kamel Principle, RFID Sherpas
- 7. What Does RFID Look Like? #HolidayCCS • 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
- 8. RFID SoluCon Components #HolidayCCS Paper Ticket Adhesive Label Hard Tag Sewn-‐In Label RFID Readers RFID Tags
- 9. A Quick Recap Of Item Level RFID 2008 -‐ 2010 #HolidayCCS in Recent Years • Item level projects picking up steam • TesWng new categories, focused on replenishment • Department Store focus 2010 -‐ 2012 • Omni-‐Channel is a driver of RFID adopWon • Display compliance drives fast ROI • Expansion beyond replenishment into jewelry 2013 -‐ 2014 • Round Rock Patent issues resolved • Companies open up about successes • Expansion into Fashion • Luxury segment growth • UpWck in European deployments (e.g. Asda, Decathlon, M&S)
- 14. #HolidayCCS “ImplementaWon of this next-‐generaWon technology is one of the most significant changes ever in how the Group’s stores operate.” Pablo Isla Chairman & CEO July 2014 2013-‐2014
- 15. Latest News from Macy’s #HolidayCCS (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 objecWve, in addiWon 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 #HolidayCCS contribuWon from increased Full Price Sell-‐Through • Margin contribuWon from higher Unit Sales • Reduced shrink (internal & external) • Labor producWvity improvements • Less working capital Wed up in Inventory • Repurposing of Loss PrevenWon budget dollars • Aligns with Omni-‐Channel, Mobility iniWaWves
- 17. #HolidayCCS RFID in Retail • Long Wme coming, since late 1990’s • Cost vs. Benefit – Shortage – Out of stock • Other prioriWes • Y2K • E-‐commerce
- 18. #HolidayCCS The Silver Bullet Consumer Centric Retail And Omni Channel
- 19. #HolidayCCS 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 Ouji=ers) – Buy items in store plus items via on-‐line device in store and pay one sale – Fulfill E-‐commerce order from stores.
- 20. #HolidayCCS Why Omni Channel • John Lewis experienced a 22.6% increase in on-‐line sales during Christmas 2013. AccounWng 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. (MarkeWng Daily)
- 21. #HolidayCCS Omni Channel CriWcal 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 #HolidayCCS 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 #HolidayCCS Inventory – Auburn University 20,000 items per hours using RFID vs. 500 via barcodes. • Staff Discipline – Train processes – Monitor to enforce
- 24. #HolidayCCS Key RFID Use Cases Within The Four Walls • On-‐Floor Availability – Display Compliance – Reduce Out-‐of-‐Shelf • Asset ProtecWon Outside of the Four Walls • Out-‐of-‐Stocks • Eliminate Frozen Inventory • Planning and AllocaWon • Omni-‐Channel Support • InteracWve Retail • Inventory Accuracy • ReducWon/EliminaWon of Manual Stock Counts • AnW-‐CounterfeiWng • AnW-‐Diversion • Supply Chain Visibility
- 25. Enhances Omni-‐Channel • Increase #HolidayCCS 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 transacWons – Significantly decrease decline rates of Fulfill-‐from-‐Store transacWons, thereby decreasing split ships and extra labor of searching in mulWple stores
- 26. Enhances Omni-‐Channel – Increase #HolidayCCS 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 capabiliWes and allows for more efficient locaWon based selling and alerWng
- 27. Internet of Things (IoT) #HolidayCCS
- 28. #HolidayCCS IoT Value to Retail • 1.76 Trillion less than 50% realized (Cisco) • OpportuniWes – Omni order and pay anywhere – Intelligent pricing (Shelf labels) – Product movement – Equipment monitor and control – Tailored promoWons – Customer service (Wi-‐Fi in store)
- 29. #HolidayCCS Concerns • Privacy • Mobile and RFID, NFC one standard? • AcWve Tags, $2 vs. $.05 • Self driving cars
- 30. #HolidayCCS Things I’d Like (TiL) • Find my “stuff” (Tile) • Clean out the “Frig” • InstrucWons for use
- 31. #HolidayCCS Q&A
- 32. Q&A #HolidayCCS Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR
- 33. Today’s Panelists Richard Mader Director Emeritus, ARTS #HolidayCCS Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR John-Pierre Kamel Principle, RFID Sherpas
- 34. Thank You For Joining Us #HolidayCCS The next session in this series… 10 Ways To Personalize The Holidays 12PM ET / 9AM PT ccs.retailtouchpoints.com/holiday-2014