RFID IN THE FASHION RETAIL INDUSTRY
Precise observation of the entire value added chain is the most important approach for the implementation of RFID projects in the area of fashion retail stores. The foundation of a reasonable design for an efficient, smooth flow of products is created by analyzing the individual process steps and thereby ensuring the availability of products at the point of sale (POS).
RFID technology creates revolutionary options for counteracting a lack of transparency in the value added chain, disappearing customers and thereby losses of sales at the same time. RFID makes identification of many products possible in a short time and without visual contact to those products. Leading companies in the field of fashion and footwear have acknowledged these advantages.
The potential and benefits of RFID technology are enormous here, because they create transparency throughout the entire process chain from production to sale. By using RFID, manufacturers and retailers have an overview of the entire distribution of products and movement processes in production, logistics and sales at all times. All data will be recorded and documented in an entirely automated manner. Thus, fashion companies have achieved precision physical inventory counts of 99 percent thanks to RFID. Implementation of an RFID system will be amortized within roughly two years in these areas as a rule.
Possible Uses for RFID in the Value Added Chain
Manufacturing
If the articles have already been provided with RFID tags during manufacturing, each process step can be precisely documented and traced from manufacturing to the POS. Continuous information about sales figures makes exact planning of production possible. Manufacturers can significantly improve their quality assurance. RFID transponders can be sewn into the textile maintenance labels, soles of shoes or the product itself. Implementing the technology as early as the production of the product will allow for the option of automatically validate all articles with precision up to 100% without additional work steps. Doing so can ensure that precisely the required product leaves the production facility, once the retailer has placed the order.
Logistics
Everywhere that packages, palettes or containers with a product arrive, are forwarded or sent, RFID technology prevents errors in commissioning. The receipt and shipment of products can be recorded at the various points in the value added chain using mobile handhelds and stationary terminals. Actual visual inspection of the product is no longer necessary. The shipped product will be scanned using the transponders without opening the shipping container. The entire delivery can be inspected entirely automatically for quantity. Manual errors are prevented. The savings in terms of time in contrast with manual commissioning of products is enormous.
Receipt of Products at the Store
Hanging and folded products can be scanned, their data gathered and entered into the merchandise system in seconds with the help of RFID. Thereby, receipts of products will be effortlessly recorded up to 100% and can be immediately compared with ordered product quantities. The products will then be immediately available for sale after delivery, because inspection of the entire delivery has been entirely automated and in real time. Product movements can also be stored automatically through the integration of an Internet-based database and traced transparently along the entire delivery chain up to the sales area.
Sale
In the sales area, RFID makes finding and associating all articles possible in the shortest time. Employees can get the overview of inventory at the press of a button. This makes out-of-stock situations a thing of the past. Increased sales and customer satisfaction are the consequence of quicker response capability and a better overview of inventory. The use of RFID is also reasonable for physical inventories. Entering inventory counts can be accelerated by a multiple and thereby performed more often in shorter intervals. At the same time, fewer employees are locked into counting inventory, which creates more time for consulting with customers.
Product Shipment
The products can be entered quicker into the register using the RFID tags than using bar code labels. Because the RFID label can also be used to secure products, the security tag also does not need to be removed during the sale. This results in a real time advantage in comparison to the use of hard labels. The respective clothing articles will be designated as “sold” in the database during the scanning process at the register by the merchandise system. Stationary RFID scanning units will check if the product has actually been sold when it leaves the store.
Your Advantages at a Glance
- Transparent processes
- Increased sales
- Long-term reductions of expenses
- Reduction of warehousing expenses by optimizing the frequency of turnaround
- Optimized provision of product
- Quick examination of product availability
- Increased inventory precision with temporal savings
- Increased security
- Improved customer service