Kerry Krause. UHF RFID in Retail

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1 Kerry Krause UHF RFID in Retail 1

2 RFID revolutionizes retail operations from source to store.

3 INVENTORY ACCURACY = NO OUT-OF-STOCKS FEWER MARKDOWNS CUSTOMER SATISFACTION

4 RFID in Retail Many products categories are being tagged Apparel Consumer electronics Cosmetics Jewelry Tires Batteries Etc Apparel is leading the way

5 RFID in Apparel Taking Off Tag Volume (millions) Source: IDTechEx

6 RFID is Transformational STORE OPS & CUSTOMER SERVICE SUPPLY CHAIN LOSS PREVENTION Advanced Shopping Experience Seamless Multi-Channel Optimization Inventory Management Desegregation Cycle Counting Shipping and Receiving Situational Security Conditional Alarming & Video Indexing Perimeter Security Nothing has the power to transform our business like RFID Peter Longo, President of Macy s Logistics and Distribution

7 Inventory Management What you think you have What you see 30x30 30x31 31x31 32x31 32x32 What you actually have

8 How to get visibility 1. Apply & encode tags 2. Read them in the store

9 Tagged Item Value Chain FABRICATION 9 CONVERSION TAGGING Making chips Assembling inlays and tags Encoding and handling Tag Chip Finished blank tag EPC tagged item 2011

10 Writing is Slower than Reading Download (read) Upload (write)

11 1400 Apply & encode tags at the source MAINSTREAM INTEGRATION Tag Volume (millions) SPECIAL HANDLING 40 tags/min Up to 300 tags/min 1000s of tags/min Source :IDTechEx

12 Brand Packaging Manufacturer Garment Manufacturer Brand DCs 1 Industrial-scale in-line 2 Off-the-shelf printers Retailer, DC & Stores 3 Bulk encoding

13 1 Industrial-scale in-line 2 Off-the-shelf printers 1 In-line encoding tags/minute Proven Inventory management 2 Off-the-shelf printers 40 to 75 tags/minute Goes anywhere More handling Printing and RFID don t mix well 3 Bulk encoding 3 Bulk encoding tags/minute Unique for RFID

14 Scalable Tag Encoding Solutions Retail Brand Owners STP Monza 4 Monza

15 Apparel Inventory Tracking Apparel tracking Galeria Kaufhof Customer challenge Real-time inventory management Improve customer experience UPM partnered with Impinj Monza-based tags Speedway readers Near-field reader antennas Galeria Kaufhof became the first end-to-end item-level UHF Gen2 deployment in a fashion store

16 Fashion Inventory RFID manages fashion (jewelry and watch) inventory Customer challenge Optimize warehouse processing Manage in-store inventory Process at point-of-sale Frequentiel partnered with Impinj Monza-based tags Indy-powered handheld Speedway Revolution readers CLEOR succeeds at 50 stores! Won award entitled les Rois de la supply chain (kings of supply chain)

17 Customer Experience RFID Solution improves customer experience in ice cream store Customer Challenge Ever-changing inventory Communication to customers Izzy s partnered with Impinj Speedway Reader Near-field Antennas Izzy s Ice Cream lets customers know flavor options in real time

18 Customer Experience RFID solution provides customers with information about wine and liquor Customer challenge Lots of information to communicate consumers Consumers choose relevant information Tag Ingenieros partnered with Impinj Monza based tags TendaVins provides an interactive, informative customer experience

19 Thank you

20 Back Up

21 Building Momentum Successful programs Marks and Spencers Macy s Walmart Bloomingdales Levi s (Mexico) Gerry Weber (Europe) American Apparel Many others Core use cases Inventory accuracy Locating product Loss prevention Inventory accuracy pays for RFID Up to 30% points better (e.g. 60% 90% accurate)

22 RFID in Retail is Transformational STORE OPS & CUSTOMER SERVICE SUPPLY CHAIN LOSS PREVENTION Advanced Shopping Experience Seamless Multi-Channel Optimization Inventory Management Desegregation Cycle Counting Shipping and Receiving Situational Security Conditional Alarming & Video Indexing Perimeter Security Nothing has the power to transform our business like RFID Peter Longo, President of Macy s Logistics and Distribution

23 TAGGING 1. WRITE PRODUCT DATA 2. WRITE SERIAL NUMBER 3. LOCK EPC MEMORY EPC Product Info Serial Number Packaging Manufacturing Distribution

24 Write-Optimized Systems PRINTER-ENCODERS 40 to 300 tags/minute Go anywhere NON-PRINTING ENCODERS Up to 750 tags/minute Monza and STP Go anywhere HIGH PERFORMANCE INLINE 1,750 tags/minute with Monza and STP For converters and service bureaus BULK ENCODING 1,100 tags/minute with Monza and STP For DCs, manufacturers and tag suppliers

25 NON-PRINTING ENCODERS web Stage 1 Single stage 750 tags/minute HIGH PERFORMANCE INLINE web Stage 1 Stage 2 Dual stage 1,750 tags/minute

26 BULK ENCODING Small bundles Case contents Methods Same SKU Mixed SKU Pallet contents