RFID-enabled solutions can provide retailers with inventory visibility and loss prevention benefits. They allow retailers to reduce theft by 15-75%, increase inventory accuracy to above 99%, and increase on-shelf availability by 10-30%. RFID solutions offer visibility into backroom, sales floor, and transaction activities. They provide benefits like shrink visibility, improved merchandising and store operations, and enable omni-channel retailing. TrueVUE is an RFID software platform that provides comprehensive inventory management, robust reporting, ease of integration, and commissioning solutions to deliver value from RFID deployments.
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Why RFID-Enabled Solutions For Retail?
Loss Prevention
Merchandising
Store Operations
• Reduce theft/shrink by 15% - 75% • Reduce internal theft
• Provide item-level shrink visibility • Ensure accuracy of deliveries
• Facilitate faster replenishment of stolen
merchandise
• Enable authenticity verification
• Identify near real-time source of shrink
• Increase inventory visibility and
accuracy to above 99%
• Increase inventory ROI
• Reduce OOS conditions by 10% - 30% • Facilitate Omni-channel retailing
• Increase on-shelf availability by
10% - 30%
• Enable store order fulfillment &
improved ATP
• Enhance shopper experience and top-line
revenues by 5% - 10%
• Reduce customer wait time at POS by
10% - 25%
• Increase conversion rates by
10% - 50%
• Increase cycle counting efficiency and
accuracy
• Improve returns processing • Automate manual processes & reduce
error
* 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. Mobility
• Empowering shoppers & sales associates with mobile devices
• Mobile check-out and payment
Omni-channel Retailing
• Enabling the customer to shop anywhere, anytime, anyhow
• Fulfilling orders from any location
Redefining the Role of the Store
• Optimizing the supply chain (including the store)
• Leveraging store inventory for online order fulfillment
• Improving store experience through technology
The Customer Experience
• Ensuring a consistent, convenient, satisfying shopping
experience through all brand touch points
• Making the store environment more engaging and enjoyable
The New Retail Power Duo: CMO & CIO
• Emergence of CMO as the new IT buying center and owner
of the customer experience
• Experience: driven by CMO and enabled by CIO
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Retail Trends
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Inventory Visibility Benefits –
Scale and Importance
Benefits 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
• Reduced
Shrinkage From All
Sources
Higher Margins
Loss Prevention
• Reduced stocking
labor
• Reduced
receiving labor
• More efficient
POS
Higher Margins
Operational
Efficiency
• Quicker and more
accurate product
locator
• Increased
$/transaction
• Omni-channel
benefit
Sales Uplift
Customer
Satisfaction
• Reduced sales
floor OOS
Sales Uplift
On Floor
Availability
• Improved store
replenishment
• Reduced safety
stocks
• Reduced store
OOS
• Omni-channel
foundation
Sales Uplift
Higher Margins
Planning
and Allocation
Foundation: Inventory Accuracy
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TRS RFID Solution Areas
Backroom Visibility Use Cases
• Receiving
• Store transfers
• RTVs
• Direct customer fulfillment
• Document preparation
• Reporting & reconciliation
Management of item-level
receiving and shipping
transactions.
On-Floor Visibility Use Cases
• Mobile inventory counting
• Mobile item search
• Misplaced item location
• Back-to-floor restocking
• Replenishment to store
• Inventory reporting
Visibility to item-level inventory on
the sales floor and across the
enterprise.
Transaction Visibility Use Cases
• POS sales, exchanges and returns transactions
• Tag read, write and detach
• Item inventory status and disposition
• Transaction reporting
Visibility to item-level inventory
on the sales floor and across the
enterprise.
Front End Visibility Use Cases
• RFID entrance/exit read
• EAS alarm & functionality
• Shrink visibility & reporting
• EAS management reporting
Front-end RFID read capability
for inventory, shrink and
merchandising management.
6. Value of TRS RFID Solutions
• Identification of vendor shortages
• Immediate ASN reconciliation and mis-
shipment identification reducing loss
• Automation of manual processes reducing
time, cost and error
• Increased inventory accuracy at the time of
receipt 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 and
inventory
• 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 loss
event details
• Visual deterrent to shoplifting
• Decreased internal theft
• Increased alarm intelligence & configuration
• ORC combatant
• Timely replenishment & restocking of lost
items
• Reduced out-of-stock conditions
• Enhanced shopper experience with reduced
false alarms
• Corporate RFID project leverage of current
investment
Loss Prevention Merchandising Store Operations
7. Shrink Visibility - Redefining Security with
Information-Based Loss Prevention
The Problem
*Results compiled over a three month period at a leading global retailer
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• RFID Inventory Management
programs typically focus only
on the selling floor, resulting
in a blind spot at the store exit
• Traditional EAS does
a good job of covering exits,
but lacks clear visibility into
item-level product data
• Video Surveillance needs to
be integrated to exception
events to provide meaningful,
actionable data
Store Intelligence and Integration Platform
EAS with
Enhanced
Detection
Inventory
Visibility
Video
Surveillance
Shrink Visibility
• Adaptive
deployment of
LP personnel
• Theft trend
analysis by
store/region/
country/
time/day/season
• Selective
alarming for key
loss categories
• Reduced nuisance
alarms; improved
LP Staff
responsiveness
• Indexed video
surveillance
details items,
times and
locations
The Results*
8. Shrink Visibility Exception Report Example
Combining RFID with EAS and video surveillance provides detailed
insight 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 store
Quick replenishment of missing items
Corrective action and prevention of future occurrences
0
5
10
15
20
25
30
Shrink Events at Store Exit*
Shrink Events
Item Loss
Qty
Jeans - Style 1 8
Shoes - Style 5 6
Jeans - Style 3 5
DVD 3
TV – 19” 2
/ 8 /
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RFID Solution Components
Hardware
ServicesSoftware
• 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
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Front-End Visibility Diagram
FRONT ENDPOS
PoE
Switch
RFID Reader
PoE
Ethernet
PoE 802.3aT
RFID Reader
Antenna
RFID Reader
Ethernet
RS485
TrueVUE
Gateway
Bi-Optic
Scanner
RFID Detacher
INTERNET
12. RFID Tagging Options
RFID encoding is done when
price ticket is manufactured.
Disposable Price Tickets
integrated with RFID Tags
Reusable RFID Soft Swing
Tags
RFID encoding must be done at
some point in the supply chain
(factory, DCs, stores, etc.).
Reusable RFID Hard Swing
Tags
Reusable Dual Tech.
RFID/EAS Hard Tags
RFID encoding completed at some
point in the supply chain (factory,
DCs, stores, etc.).
RFID encoding completed at some
point in the supply chain (factory,
DCs, stores, etc.).
Encoding
Req.
Life
Expectancy
Single use – disposable item. Multi-use (<5 times) – limited
reuses depending on material.
Difficult to automate recirculation.
Multi-use (> 5 times) - relatively
easy to automate recirculation and
validation.
Multi-use (up to 50 times) -
relatively easy to automate
recirculation and validation.
Encoding
Options
At 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 encoded
Low security since tag can be
easily removed, no EAS tech.
Higher per unit cost since tag is
disposable (but coming down).
Low security since tag can be
easily removed, no EAS tech.
Low cost per use depending on
durability of tag.
Low security since tag can be
easily removed, no EAS tech.
Low cost per use.
Highest security since tag can not
be easily removed without
SuperTag detacher and includes
best of EAS Technology.
Low cost per use.
Security
Cost
per
Use
• 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
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13. TrueVUE Store Performance Platform
Common user interface across devices and applications.
New insights from data across multiple solution sets.
New insights from
the power of “AND”
Features
• “Iconized” Menus
• Role-based
Dashboards
• Multi-level Reports
• Detailed Drilldowns
• System Performance
and Health
• Alerts and Event
Notifications
• Tyco and 3rd Party
Solution Integration
Inventory Visibility Traffic IntelligenceEAS Intelligence Store Execution
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14. Deep Functionality
• Most comprehensive inventory cycle counting capability
• Intuitive, resilient, effective, efficient, user-proof
• Advanced functionality based on extensive real-world experience
Robust 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 needs
Ease 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 manage
Comprehensive Commissioning Solutions
• Simple management of standard commissioning processes
• Fail-safe processes to ensure highest accuracy
• Multiple commissioning authorities for item-level clarity, regardless
of source
Enterprise Class Platform Design
• Optimized for efficient use of network bandwidth and resources
• Scheduled installs with updates automatically pushed
• Automatic configuration
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Value of TrueVUE Software Offering
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2013: The Year of Inventory Visibility
RIS News: “Item-Level RFID Critical Mass at Last”
End of
FY12
End of
FY13
Growth
Stores 1,000 2,000 100%
Recirculatable
Tags
300mm 750mm 150%
Devices 1,800 6,500 260%
Tyco RFID Momentum
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Tyco Devices in Nearly 185,000 Stores
Worldwide
Extensive, Diverse Retail Experience
Across a range of industry sectors and
global geographies
From single-store deployments through
large scale, enterprise-wide rollouts