Building Radio frequency IDentification solutions for the Global Environment. Work package 7

Transcription

1 Building Radio frequency IDentification solutions for the Global Environment Work package 7 EPC/RFID in the store environment: Requirements and applications for comfortable shopping at Kaufhof

2 Agenda Work package 7 - Objectives and WP partners - Problems & EPC opportunities in the textile supply chain Requirements for an EPC implementation in the store EPC/RFID in the store environment - applications in the Kaufhof department store -

3 WP 7 goals and partners Examine the feasibility of EPC/RFID in the clothing sector and develop prerequisites for an RFID implementation: Approach: Lead: Conduct analytical- and empirical-based studies. Identify potential RFID opportunities in supply chain processes under consideration of various impacts. Develop a criteria catalogue for possible RFID implementations. Partners: Northland Spain

4 Agenda Work package 7 - Objectives and WP partners - Problems & EPC opportunities in the textile supply chain Requirements for an EPC implementation in the store EPC/RFID in the store environment - applications in the Kaufhof department store -

5 7.1 Process Flow and analysis 2. DSD 6. Store 2 Backroom Apparel Distribution Store 1 Manufacturer Center Backroom 5. Front Store 7. POS Customer Reception Area Outgoing area Pain points Reception area area Front Rework Process Description Storage process area floor area Cross 5.3 Inventory control Docking area labour costs/ Storage losing time area 5.4 Searching items Outgoing labour costs/ (also back store) area losing time RFID/EPC Sales area expected opportunities saving labour and time cost. 100% quantity check without additional costs. Less OOS. More stock taking. saving labour and time cost. More time for selling tasks. possible new challenges 5.5 replacing founded garments searching for the right shelf saving time and labour cost. 6.1 Searching item labour costs/ losing time saving labour and time cost. More time for selling tasks.

6 7.1 Weak points Process impact: High Time-to-market processes Inaccurate inventory Inaccurate forecast quality Less productivity Costs factors: Labour costs Low productivity Illicit trade Shrinkage & theft High safety stock depreciations (overstock) and obsolescence Less sales: OOS Misplaced items Late replenishment Less customer service Counterfeiting Difficult to measure impacts: Less customer loyalty and decreasing costumer satisfaction

7 7.1 Expected RFID Benefits Higher quality network of the supply chain: Increase of data and information accuracy Better supply chain transparency Stock accuracy Quick, reliable and permanent inventory in warehouse and store Improved traceability Increased Sales: Better on shelf availability (OSA) Better tracking of goods (e.g. front back store) Increase of sales Increased costumer service Reduction of costs: Increased productivity Reduction of labour Reduction of shrinkage, theft, illicit trade Reduction of safety stock Soft benefits: Higher costumer satisfaction through product availability and service Higher customer loyalty

8 Agenda Work package 7 - Objectives and WP partners - Problems & EPC opportunities in the textile supply chain Requirements for an EPC implementation in the store EPC/RFID in the store environment - applications in the Kaufhof department store -

9 7.2 Requirement Analysis the technology Selection and definition of supply chain process steps based on task 7.1. EPC/RFID technology and its features applied to the textile supply chain: Electrical and Radio Frequency (RF) requirements at the installation sites Tag requirements Location requirements, e.g. fitting room, shelves Selection of Hardware elements Detailed technical description of single RFID processes Software Specifications EPCIS Critical points

10 7.2 Critical points Starting basis back store/front store: metal shelves in back stores many garments in close proximity on different carriers many shelves, tables, racks etc. Public Policy issues Critical points: Tag: placement at different garments specific tags tag density Antennas: positioning number power output Reader configuration: motion detector frequency channel Environment: interference shielding wrong reads Middleware: IS communication filtering managing

11 7.2 EPC/RFID applications Detailed description of installation and configuration for a store Physical place and environment List of material required Installation details For different applications, e.g. smart fitting rooms

12 7.2 Example: Smart Shelf Physical place and environment: Dimensioning Number, model and position of the antennas Desired reading zone - antenna radiation diagram should be analyzed accordingly Position of the antennas: e.g. attached under each shelf Sales Floor shelf Width: 0.6 m. Length: 5.8 m. Height: 2.3 m (aprox.). Shelve: Width: 0.6 m. Length: 5.8 m. Height: 0.4 m. Drawer: Width: 3 m. Height: 2.9 m. Table 7: Example of the dimensioning of a sales floor shelf Source AIDA Centre

13 7.2 Material List smart shelf Element RFID Reader Antenna Antenna wiring AC/DC converter Electrical data Power line Units Description EPC Gen 2 reader with at least 4 single mode antenna ports Circular polarised patch antennas A low-loss coaxial cable for each patch antenna is recommended due to the high signal loss at UHF band Power converter from 220 VAC Single phase 220 VAC power line Physical infrastructure Antenna support Reader box 4 1

14 Reader configuration: 7.2 Installation details smart shelf Power antenna output: only cover the desired zone - depending on the size of the self Reading cycle: the application is not triggered by any external signal a defined interval, e.g. 30 seconds is recommended Installation/configuration of software on the company's hardware

15 7.2 Guidelines General Requirements: Project plan and time line Dimensioning SC HW/SW components Estimation of investment costs Risk management Application description RFID portal front/back store Smart shelves/rails/fitting rooms POS-Module Mobile reader Tag printer Maintenance Hard-/software Test phase Test series System integration and nomenclature Hardware integration Software configuration System integration EPCIS-Standard

16 7.2 List of tasks 1. Meeting with the solution provider Knowledge of the physical environment Process step analysis & selection Dimensioning of the environment 2. Technical plan Selection of garments Selection of hardware Nomenclature Supply of material Elaboration of use cases Software specifications 3. Approval of the technical plan demonstration of different applications (pilot) 4. Implementation Checking & transportation of material to the installation site Hardware set up & configuration of Hardware devices Installation / configuration of software on the company s hardware System revision Error correction on implementation Testing Phase: defined serial tests Trainings Customer information

17 Agenda Work package 7 - Objectives and WP partners - Problems & EPC opportunities in the textile supply chain Requirements for an EPC implementation in the store EPC/RFID in the store environment - applications in the Kaufhof department store -

18 Building Radio frequency IDentification solutions for the Global Environment Pilot Project: RFID at Product Level in the Kaufhof Department Store Uwe Quiede Kaufhof Warenhaus AG

19 Project Compass Store Project start RFID technology Galeria Kaufhof Essen, men s fashion, 3. floor September 2007 Passive transponders attached to the complete assortment and carriers Read points at dock doors, tranfer points in the store, dressing rooms, cash desks. Tagging stations, Read points at the DC dock door Applications Smart dressing room, advertising displays Smart shelves RFID supported hand held functionalities Project goals Identification of benefits, potentials, limits and challenges of using RFID on item level

20 Project Compass Cash Desk Backstore Dressing Room Exits Gardeur Shop Escalator, Corridor Sales floor

21 4 Smart Dressing Rooms RFID Read Points Screens

22 RFID Applications Smart Dressing Room RFID Hand Held Magic Mirror RFID / EAS Gate Transfer Gate

23 RFID Applications Smart Dressing Room Magic Mirror

24 Features of the gardeur Shop Screen Shots

25 Features of the gardeur Shop Screen Shots

26 Features of the gardeur Shop Screen Shots

27 Next steps Stabilization of the system / Continuous adjustments Feasibility and fitness of the technology and the use cases Check of first results /sales increase Staff and customer reaction and acceptance Customer interviews Experience and results report

28 METRO Group Future Store Initiative: Experience the future of retail with us! Thank you for your attention

29 Building Radio frequency IDentification solutions for the Global Environment For more information on WP7 please do not hesitate to contact us!