RFID For Retail


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RFID For Retail

  1. 1. RFID-EnabledSolutions forRetail
  2. 2. / 2 /Why RFID-Enabled Solutions For Retail?Loss PreventionMerchandisingStore Operations• Reduce theft/shrink by 15% - 75% • Reduce internal theft• Provide item-level shrink visibility • Ensure accuracy of deliveries• Facilitate faster replenishment of stolenmerchandise• Enable authenticity verification• Identify near real-time source of shrink• Increase inventory visibility andaccuracy to above 99%• Increase inventory ROI• Reduce OOS conditions by 10% - 30% • Facilitate Omni-channel retailing• Increase on-shelf availability by10% - 30%• Enable store order fulfillment &improved ATP• Enhance shopper experience and top-linerevenues by 5% - 10%• Reduce customer wait time at POS by10% - 25%• Increase conversion rates by10% - 50%• Increase cycle counting efficiency andaccuracy• Improve returns processing • Automate manual processes & reduceerror* Based on actual Tyco deployments as well as published industry results** Shrinkage reduction does not include deployment at front end of store, benefits from shrink visibility to address internal,vendor and administrative losses
  3. 3. Mobility• Empowering shoppers & sales associates with mobile devices• Mobile check-out and paymentOmni-channel Retailing• Enabling the customer to shop anywhere, anytime, anyhow• Fulfilling orders from any locationRedefining the Role of the Store• Optimizing the supply chain (including the store)• Leveraging store inventory for online order fulfillment• Improving store experience through technologyThe Customer Experience• Ensuring a consistent, convenient, satisfying shoppingexperience through all brand touch points• Making the store environment more engaging and enjoyableThe New Retail Power Duo: CMO & CIO• Emergence of CMO as the new IT buying center and ownerof the customer experience• Experience: driven by CMO and enabled by CIO/ 3 /Retail Trends
  4. 4. / 4 /Inventory Visibility Benefits –Scale and ImportanceBenefits Quantified By:// Sales uplift vs. control stores// Reduced store OOS position// Reduced store sales floor OOS position// Stock ledger vs. RFID vs. manual count// Workflow studies// Decreased shrink• Shrink Visibility• ReducedShrinkage From AllSourcesHigher MarginsLoss Prevention• Reduced stockinglabor• Reducedreceiving labor• More efficientPOSHigher MarginsOperationalEfficiency• Quicker and moreaccurate productlocator• Increased$/transaction• Omni-channelbenefitSales UpliftCustomerSatisfaction• Reduced salesfloor OOSSales UpliftOn FloorAvailability• Improved storereplenishment• Reduced safetystocks• Reduced storeOOS• Omni-channelfoundationSales UpliftHigher MarginsPlanningand AllocationFoundation: Inventory Accuracy
  5. 5. / 5 /TRS RFID Solution AreasBackroom Visibility Use Cases• Receiving• Store transfers• RTVs• Direct customer fulfillment• Document preparation• Reporting & reconciliationManagement of item-levelreceiving and shippingtransactions.On-Floor Visibility Use Cases• Mobile inventory counting• Mobile item search• Misplaced item location• Back-to-floor restocking• Replenishment to store• Inventory reportingVisibility to item-level inventory onthe sales floor and across theenterprise.Transaction Visibility Use Cases• POS sales, exchanges and returns transactions• Tag read, write and detach• Item inventory status and disposition• Transaction reportingVisibility to item-level inventoryon the sales floor and across theenterprise.Front End Visibility Use Cases• RFID entrance/exit read• EAS alarm & functionality• Shrink visibility & reporting• EAS management reportingFront-end RFID read capabilityfor inventory, shrink andmerchandising management.
  6. 6. Value of TRS RFID Solutions• Identification of vendor shortages• Immediate ASN reconciliation and mis-shipment identification reducing loss• Automation of manual processes reducingtime, cost and error• Increased inventory accuracy at the time ofreceipt and shipment• Real-time inventory availability• Improved stock ledger accuracy• Reduced fitting room theft• Improved inventory accuracy• Near real-time identification of missing items• Visibility to misplaced items• Proper accounting of loss values• Maximized on-floor availability• Improved inventory accuracy• Real-time visibility to replenishment• Reduced out-of-stocks• Increased sales and revenues• Foundation for omni-channel retailing• Efficient inventory counting• Enhanced shopper experience• Stock balancing optimizing store space andinventory• Audit trail of stolen items returned for credit• Combatant for POS “sweet-hearting”• Reduced internal theft• Elimination of fraudulent returns• Improved financial transaction processing• Trigger for replenishment of items sold• Improved stock ledger accuracy & COGS• Real-time inventory update & visibility• Reconciliation with system of record• Expedited POS transactions• Enhanced shopper experience• Accurate & efficient return processing• Increased visibility to items stolen and lossevent details• Visual deterrent to shoplifting• Decreased internal theft• Increased alarm intelligence & configuration• ORC combatant• Timely replenishment & restocking of lostitems• Reduced out-of-stock conditions• Enhanced shopper experience with reducedfalse alarms• Corporate RFID project leverage of currentinvestmentLoss Prevention Merchandising Store Operations
  7. 7. Shrink Visibility - Redefining Security withInformation-Based Loss PreventionThe Problem*Results compiled over a three month period at a leading global retailer/ 7 /• RFID Inventory Managementprograms typically focus onlyon the selling floor, resultingin a blind spot at the store exit• Traditional EAS doesa good job of covering exits,but lacks clear visibility intoitem-level product data• Video Surveillance needs tobe integrated to exceptionevents to provide meaningful,actionable dataStore Intelligence and Integration PlatformEAS withEnhancedDetectionInventoryVisibilityVideoSurveillanceShrink Visibility• Adaptivedeployment ofLP personnel• Theft trendanalysis bystore/region/country/time/day/season• Selectivealarming for keyloss categories• Reduced nuisancealarms; improvedLP Staffresponsiveness• Indexed videosurveillancedetails items,times andlocationsThe Results*
  8. 8. Shrink Visibility Exception Report ExampleCombining RFID with EAS and video surveillance provides detailedinsight into exception events at the store exit.Shrink visibility provides detailed item-level information to enable:Tracking last place/zone where items were identified in storeQuick replenishment of missing itemsCorrective action and prevention of future occurrences051015202530Shrink Events at Store Exit*Shrink EventsItem LossQtyJeans - Style 1 8Shoes - Style 5 6Jeans - Style 3 5DVD 3TV – 19” 2/ 8 /
  9. 9. / 9 /RFID Solution ComponentsHardwareServicesSoftware• Readers• Detection• Hard Tags & Hang tags• POS Pads• Detachers• Deactivation• Handhelds• Hard Tags & Hang tags• Handhelds• Antennas• Readers• Hard Tags• Hang Tags• Professional• Installation• Maintenance• Deployment• Inventory Visibility• Cycle Count Management• Item Transaction Tracking• Alarm Management• Shrink Visibility• Intelligence Reporting
  10. 10. / 10 /Front-End Visibility DiagramFRONT ENDPOSPoESwitchRFID ReaderPoEEthernetPoE 802.3aTRFID ReaderAntennaRFID ReaderEthernetRS485TrueVUEGatewayBi-OpticScannerRFID DetacherINTERNET
  11. 11. Fitting Room/ 11 /On-Floor Visibility Fitting Room DiagramEthernetGatewayTrueVUEINTERNETSwitchPoEPoE 802.3aTRS485Overhead StereoTraffic DeviceRFID Reader &Antenna(w/Directionality)
  12. 12. RFID Tagging OptionsRFID encoding is done whenprice ticket is manufactured.Disposable Price Ticketsintegrated with RFID TagsReusable RFID Soft SwingTagsRFID encoding must be done atsome point in the supply chain(factory, DCs, stores, etc.).Reusable RFID Hard SwingTagsReusable Dual Tech.RFID/EAS Hard TagsRFID encoding completed at somepoint in the supply chain (factory,DCs, stores, etc.).RFID encoding completed at somepoint in the supply chain (factory,DCs, stores, etc.).EncodingReq.LifeExpectancySingle use – disposable item. Multi-use (<5 times) – limitedreuses depending on material.Difficult to automate recirculation.Multi-use (> 5 times) - relativelyeasy to automate recirculation andvalidation.Multi-use (up to 50 times) -relatively easy to automaterecirculation and validation.EncodingOptionsAt time of price ticket printing. • At time of price ticket printing• Manually at factory• Manually at DC• Bulk encoded• At time of price ticket printing• Manually at factory• Manually at DC• Bulk encoded• At time of price ticket printing• Manually at factory• Manually at DC• Bulk encodedLow security since tag can beeasily removed, no EAS tech.Higher per unit cost since tag isdisposable (but coming down).Low security since tag can beeasily removed, no EAS tech.Low cost per use depending ondurability of tag.Low security since tag can beeasily removed, no EAS tech.Low cost per use.Highest security since tag can notbe easily removed withoutSuperTag detacher and includesbest of EAS Technology.Low cost per use.SecurityCostperUse• Single use• Human readable• Easy encoding• Low security• Higher cost• Multi-use• Not human readable• Supply chain encoding• Low security• Lower cost• Multi-use• Not human readable• Supply chain encoding• Low security• Lower cost• Multi-use• Not human readable• Supply chain encoding• Highest security• Lower cost/ 12 /
  13. 13. TrueVUE Store Performance PlatformCommon user interface across devices and applications.New insights from data across multiple solution sets.New insights fromthe power of “AND”Features• “Iconized” Menus• Role-basedDashboards• Multi-level Reports• Detailed Drilldowns• System Performanceand Health• Alerts and EventNotifications• Tyco and 3rd PartySolution IntegrationInventory Visibility Traffic IntelligenceEAS Intelligence Store Execution/ 13 /
  14. 14. Deep Functionality• Most comprehensive inventory cycle counting capability• Intuitive, resilient, effective, efficient, user-proof• Advanced functionality based on extensive real-world experienceRobust Reporting• Rich library of out-of-box reports; flexibility to customize• Ability to clone and import to maximize insights• Hierarchy and rollups that match enterprise needsEase of Integration• Key to delivering value of RFID-enabled solutions• Web services available for retailer and Tyco use• Few retailer IT resources required to deploy or manageComprehensive Commissioning Solutions• Simple management of standard commissioning processes• Fail-safe processes to ensure highest accuracy• Multiple commissioning authorities for item-level clarity, regardlessof sourceEnterprise Class Platform Design• Optimized for efficient use of network bandwidth and resources• Scheduled installs with updates automatically pushed• Automatic configuration/ 14 /Value of TrueVUE Software Offering
  15. 15. / 15 /2013: The Year of Inventory VisibilityRIS News: “Item-Level RFID Critical Mass at Last”End ofFY12End ofFY13GrowthStores 1,000 2,000 100%RecirculatableTags300mm 750mm 150%Devices 1,800 6,500 260%Tyco RFID Momentum
  16. 16. / 16 /Tyco Devices in Nearly 185,000 StoresWorldwideExtensive, Diverse Retail ExperienceAcross a range of industry sectors andglobal geographiesFrom single-store deployments throughlarge scale, enterprise-wide rollouts
  17. 17. Thank You