Using RFID to reduce theft

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2 Using RFID to reduce theft RFID Journal Europe Nov 4th, 2010

3 We had a successful R&D project Ko-RFID (

4 Major Results Formerly developed reusable RFID tags did not fit the fashion industry needs (process accuracy, price, complexity) We needed to develop new one-way RFID tags to fit our needs The existing hardware (reader, handheld equipment) was too expensive EAS functionality seemed to be very interesting for the retail side Gerry Weber felt the need to define the key use cases and to develop new products with leading tag- and hardware suppliers

5 The decision for rollout Beginning in mid of 2010, Gerry Weber will fit all 25 Mio. pieces of garments with a combined RFID-/carelabel sewn in directly at the time of production All customers will get the RFID tags and the EPC data free of charge We will only use widely accepted standard technology We will put all interfaces and standards on full disclosure

6 The decision for rollout Ceiling mounted RFID antennas will substitute conventional EAS gates in all own-operated HoGW We will support the goods in and inventory process with RFID logic RFID will maximize supply logistics transparency and will reduce the miss-pick quota to a minimum Gerry Weber will invest 2,7 Mio. EUR within five years This will pay off in about two years

7 What s new? We combined the care label, the EPC (electronic product code), and the EAS functionality in one product Gerry Weber is a first-mover in Europe to sew in the RFID tags to use RFID for EAS purposes to support the complete supply chain from production to POS with RFID We invite our market partners to join: Competitors, customers, suppliers, logistics providers, soft- and hardware suppliers for wholesale and retail

8 Our partners Solution partners EAS RFID-Tags ERP System Instore-Software Mobile Devices Warehouse HW/SW Logistics partners Warehouse Warehouse Transport Transport

9 The EAS solution Backroom Fitting Room Sales Floor SALE SALE Handheld Reader 1 Receiving: EPC numbers are added to the EAS database. Sales Floor Portal SALE Source: GS1 EPCglobal 2 Point of Sale: SALEAfter purchase, EPC numbers are removed from the EAS database. Consumer notification occurs. 3 Front Door Point Portal of Exit/ Entry: Automatically verify sales & if unsold activates alarm.

10 Rollout Experiences (1) Store Hardware Installation was done in three steps: Cabling and mounting fixing points in the entrance Installation of RFID Readers in the entrance and at the till system Software installation In 60 stores, we installed people counter at the same time (two projects, shared installation costs) new stores will get the cabling right away

11 Rollout Experiences (2) Architectual drawings did not have enough details for final planning of installation Special problems occured with Air condition in the entrace Sprinkler fire-extinguisher in the stores Coexistence of RFID Antennas and people counter (camera based) Product carrier near the entrance Low ceilings Conventional RF deativators will interfere with RFID Readers

12 Rollout Experiences (3) More-than-expected effort for integration with PDM system Worldwide coordination of 240 suppliers is not easy, but can be managed For store personnel, RFID is voodoo Success factors: Use pictures instead of lengthy text for training the staff Better not implement as a management/it-only project Make your case as lightweight as possible Cut out everything that does not earn money

13 Privacy We will not store personal data with RFID RFID Information cannot be joined with transaction data Gerry Weber will conform to a strict privacy codex Moreover, the tag will be destroyed after third laundry or second dry clean cycle

14 The timeline Q Q Q Q Phase I a POS / Logistik Phase I b Supply Chain More to come

15 Contact: Christian v. Grone CIO