Phases of RFID projects. Overview of HKU IMSE Retail Smart Shop. Design Overview. Design Overview

Size: px
Start display at page:

Download "Phases of RFID projects. Overview of HKU IMSE Retail Smart Shop. Design Overview. Design Overview"

Transcription

1 RFID-Retail-1 RFID-Retail-2 Phases of RFID projects Overview of HKU IMSE Retail Smart Shop Five questions What process(es) and operations Who are involved What objects Input and output data with operations and objects epos Smart Fitting Room Relationships with existing EISs 3 basic questions Determine which frequency to use Where RFID readers should be What should be tagged Configuration and deployment Intelligent Kiosk Adtio Smart-i RFID System Smart Hanger Test and improvement Smart Shelf Gate Door RFID-Retail-3 RFID-Retail-4 Design Overview Design Overview

2 RFID-Retail-5 RFID-Retail-6 Floor Plan epos (Electronic Point of Sales) Module 4)POS / Auto Check Out Application 5)Receipt Printer RFID-Retail-7 RFID-Retail-8 Intelligent Kiosk Module Smart Fitting Room Module 4)Kiosk Application for Enquiry 5)Tagged Product Samples 4)Fitting Room Application 5)Mirror

3 RFID-Retail-9 RFID-Retail-10 RFID Smart Hanger RFID Gate Door Module 4)Smart Hanger Application 5)Tagged Product Sample 4)Gate Door Application 5)Gate Door Rack RFID-Retail-11 RFID-Retail-12 Smart Shelf Module 4)Smart Shelf Application 5)Tagged Product Sample RFID Applications in Retail Supply Chain

4 RFID-Retail-13 RFID-Retail-14 Retail Applications RFID Vision for a Retailer Vendor Applications Factory Freight forwarder/ consolidator Deconsolidator Distribution Centers Logistics Stores 1. Creating a Data Carrier Encoded data stays with product during lifecycle 3. Transport Cargo Security Cargo Tracking RFID tags are shipped to Manufacturers To attach to merchandise RFID IN THE RETAIL SUPPLY CHAIN 4. Distribution Center 2. Manufacturers Tags are attached to merchandise items 5. Retail Store Apply RFID tag to unit RFID tag sewn into unit RFID tag within current hang tags Pallet & Container tags RFID-Retail-15 RFID-Retail-16 Logistics Applications Receiving Applications See What s Inside Without Opening! Units Carton Pallet Container Multiple tags Read and write Unit or container level No orientation issues 100% vendor audit for quantity Existing Data Collection System

5 RFID-Retail-17 RFID-Retail-18 Shipping Applications Store Inventory Applications Back Room Monitor Doorway coverage Increments, Decrements Shelf Inventory Identifies units, cartons, pallets Identifies forklift Removes operator error DOCK 4 8 ft. 10 ft. Existing Data Collection System Store visibility at the unit level Keep correct sizes stocked Take inventory Units Shelf Area Stor e RFID-Retail-19 RFID-Retail-20 Customer Service Applications And The Rest of The Benefits Search for specific size:..sales floor, Up stock, Backroom Audible indicator when select unit is scanned Store Shelf Denim Mass scan at checkout Loyalty cards Returns Order on internet pick up at the store Customer family sizes Wish list data Credit cards Possible elimination of bulky sensormatic tag Enable EAS on more units Allow identification of loss at unit level Reduction in Lost Sales! Units Shelf Area Store

6 RFID-Retail-21 RFID-Retail-22 RFID Implementation in SMEs a Case Study from the Fashion Industry Lemmi Fashion Lemmi Fashion Founded 1959 About 80 employees in Germany Sells to 14 countries in Europe and Asia Produces and Sells about 1 Million garments a year Distribution Center based in Germany Production Partners in Asia Leading Manufacturer of Children's Wear, mainly trousers Niche with 6 different waist sizes for trousers (extra+, extra, big, mid, slim, superslim) Large number of SKU s RFID-Retail-23 RFID-Retail-24 Business Case Fundamentals Complex Analysis of all Business Processes Integrated Solution: RFID fully integrated into ERP Short implementation Timeline Objectives Increase efficiency on all steps of our supply chain Increase Quality of Deliveries from Production and to our Screenshot: Warehouse Receipt with RFID Scan Function Customers Precise information on Goods in Transit Strengthen relationships with our customers Easy to Use for all employees

7 RFID-Retail-25 RFID-Retail-26 Business Case Business Case RFID-Retail-27 RFID-Retail-28 Milestones Milestones

8 RFID-Retail-29 RFID-Retail-30 Milestones Conclusions for RFID in SMEs Efficiency is a key factor for SMEs being successful Technology uptake is a key growth vector for European SME competitiveness Transponder-Frequencies (Selection) Spectrum LF HF VHF UHF Frequency 125 KHz 134 KHz 8,2 MHz 13,56 MHz 433 MHz 868 MHz 915 MHz 2,45 GHz 5,6 GHz RFID-Retail-31 RFID-Retail Outlook for RFID in SMEs Retailer 1 - Pilot Results SMEs need to secure their investments need Standardizations can not risk uncertainty regarding privacy issues can not fund educational advertising pro RFID International (Lemmi) ITEM LEVEL Europa (Metro) USA (WalMart) CASE LEVEL? 97% 96% 95% 94% 93% 92% 91% 96% Allocation vs WMS 97% WMS vs Actual 93% Allocation vs Actual DC to Store Shipping and Receiving Accuracy 96% accuracy from allocation to pick 97% accuracy from picking to shipping (see graph) 100% tracking from warehouse to store

9 RFID-Retail-33 RFID-Retail-34 Retailer 1 - Pilot Results Store Inventory Accuracy Over 99.6% store inventory accuracy Nearly Perfect Sales Floor Inventory Replenishment reports are generated every hour Identified SKUs needed for floor as soon as the cartons received to maintain perfect inventory levels on sales floor Over 50% of the replenishment flow - back door to sales floor Retailer 1 - Pilot Results Khaki Sales Denim Sales May 19-May 26-May 2-Jun 9-Jun 16-Jun 23-Jun 30-Jun 6-Jul 13-Jul Store C Store B Pilot Store 5/5/2001 5/19/2001 6/2/2001 6/16/2001 6/30/2001 Store C Store B Pilot Store Khaki Sales to Denim Sales Comparison Tracked the sales of select Khaki SKUs to determine sales trends for each store Khaki did not have RFID tags in any store including pilot Denim Sales Activity As a result of nearly perfect data integrity and timely sales floor replenishment, initial Data Indicates over 5% increase in Adult denim sales when compared to control stores. RFID-Retail-35 RFID-Retail-36 Retailer 1 - Pilot Results Mens Audit 1 Audit 2 Audit 3 Audit 4 Audit 5 Audit 6 Audit 7 Audit 8 Audit 9 Women's Store B Store C Audit 1 Audit 2 Audit 3 Audit 4 Audit 5 Audit 6 Audit 7 Audit 8 Audit 9 Store B Store C Sales Floor vs. Backroom Stock Levels Weekly audits in the control stores - floor vs. backroom Average 12% of Adult Denim SKUs are out-of-stock on sales floor but available at backroom in the control stores - as high as 85% by style In some cases, multiple audits indicate the same SKU is outof-stock on the sales floor but available in the backroom for 21 consecutive days During same time period the pilot store maintain perfect sales floor inventory Retailer 2 - Pilot Results RFID Tags attached at vendor and SKUs assigned at DC receiving Simple SKU-RFID relationship Stores know only what they should have No changes on legacy systems Tracking vendor compliance, DC accuracy and store replenishment Payback justification - seven additional unit sales per month per store Pilot stores are showing additional 13 unit sales per store per week Store accuracy is over 98%

10 RFID-Retail-37 RFID-Retail-38 RFID-Enabled Smart Supermarkets / Department Stores Smart products Smart trolleys Smart pallets Smart shelves Smart (staff/customer) cards Evaluated RFID Business Application Value Areas Electronic Proof-of-Delivery New Product / Event Performance Promotion Management Shelf Replenishment Production Planning Redeployment Returns Expiration/Recall Loaded vs. Dispatch, In Transit RFID-Retail-39 RFID-Retail-40 The Smart Trolley Controls the RFID reader and connects with the wireless LAN Scans the products Customer browses the product list and edit the shopping list at home Detects the Smart Trolley and reports The Smart Trolley Indicates the trolley s s location by being detected in the supper market

11 RFID-Retail-41 RFID-Retail-42 Stage 1 - Customer prepares shopping list Stage 2 Customer enjoys shopping with Smart Trolleys Using any networked computer or devices with browsers as long as the customer can access the shopping website. Database RFID Trolley location Register Log in Browse and edit shopping list Form product order Log in confirm profile Acquire the order list edit Do Shopping Database Verify product order Log out Check out final products Customer Customer bank save RFID-Retail-43 RFID-Retail-44 Functions for Supermarket Manager deal with (browse, verify) customer s order list; check the final product list in customer s cart; manage the products in supermarket according to customer s orders; maintain the inventory list and the stock of products; Register Log in Browse and verify orders Check the orders Corresponding to Supermarket manager Product database