WEBER. RFID Journal Live! Europe. Oct 18th, 2011
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2 WEBER RFID Journal Live! Europe Oct 18th, 2011
3 Overview GERRY WEBER Fiscal Year 2009/2010 (Oct. 31 st ) was the most successful year in company history Turnover increased by 4,7% to Mio. EUR with an EBIT margin of 13.4% Approx. 145 new HoGW will open in FY 2010/2011 Estimated turnover 700 Mio. EUR / EBIT 14,0% in FY 2010/2011 More than Shop-in-Shops in Germany and worldwide
4 The Brands Clear brand strategy and brand positioning Increased brand visibility through retail growth GERRY WEBER STADIUM in Halle/Wetsphalia drives brand awareness with sports (Tennis/GERRY WEBER OPEN, handball, boxing) and concerts (eg Anna Netrebko, Pink, Roxette)
5 About 500 HOUSES OF GERRY WEBER worldwide, for example Berlin, Hamburg, Dubai, Kairo, St. Petersburg, Moskau EDI data is received from own retail and wholesale customers Daily analysis of sell-through and success of new fashion ideas Usage of RFID along the complete supply chain Hamburg, Jungfernstieg
6 The Gerry Weber Project Starting mid-2010, Gerry Weber fits all 28m garments annually with embedded RFID tags at time of production. In most cases, the RFID tag is embedded in the care label Since January 2011, all deliveries to own stores and retailers are tagged with RFID. All retailers get the RFID tags and the associated data for free In Gerry Weber s own stores, we support goods-in, Replenishment and EAS with RFID Gerry Weber invests 2,7m Euro, expected ROI < 2 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 Standards used SGTIN-96 for EPC-Coding EDIFACT EANCOM D02B as interface GW Retail ISO for radio (UHF Gen 2, frequency ~868 MHz) WebService/XML to connect EAS gates to in-store database DHCP/DNS to associate EAS gates with in-store database GS1-EPCglobal RFID-based Electronic Article Surveillance
9 RFID for the upstream Supply Chain Goal: increase transparency along the Supply Chain, improve logistics operations Challenge: rollout to 240 suppliers worldwide Solution: NO RFID hardware in the field RFID tags are supplied worldwide from print centers First read point is with our logistics providers Global rollout was possible within 10 weeks. No increase in process complexity during manufacturing.
10 RFID for logistics Goal: improve logistics operations Challenge: all logistics is outsourced. Solution: give fair share of benefit to our partners Obvious: more efficiency in goods in and stock count Less obvious: checking every outgoing parcel ensures 100% accuracy, reduces annual cost for customer claims in logistics by a six-digit Euro amount
11 RFID for store operations Goal: increase efficiency, increase stock accuracy, reduce out-of-stock situations Challenge: Staff thinks RFID is voodoo Solution: Change processes as little as possible Obvious: more speed in operations (goods in, stock counting) Obvious: weekly stock counting increases data accuracy to 99% Less obvious: our staff has more time for the customer more sales
12 RFID to reduce theft Goal: reduce inventory difference at the end of the fiscal year Obvious: Replace conventional RF gates with RFID antennas Obvious: more accuracy in operations (goods in etc.) Less obvious: new technology scares shoplifters Hidden: weekly stock count with RFID reveals problems soon, don t have to wait until the end of the fiscal year. Early countermeasures are possible
13 Our merchandise is secured electronically Operator: Gerry Weber Retail GmbH
14 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 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. Source: GS1 EPCglobal
15 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
16 Privacy Laws and recommandations The EU commission set up a recommendation on RFID use in 2009 The recommendation suggests a Privacy Impact Assessment In April 2011, industry signed a self-regulation for PIA It uses a classical risk assessment approach: Identify threats Evaluate risks Define mitigations Identify the residual risk The German Federal Agency for Information Security (BSI) will publish a Technical Guideline in November GS1 will publish an Industry Template Tool in October 16
17 Status October 2011 Production: active and 100% operational DC operations: active, adjustments going on Stores: EAS: active since January (for new garments) Goods in: Rollout going on 100% after DC adjustments Stock taking: Daily mini count (articles which activated EAS): Active Weekly stock count: not operational yet, starting in October Fiscal stock count: parallel operations in 2011, live in 2012
18 The impact on the market GERRY WEBER is a first-mover in the European market We made a 100% rollout: all brands, all stores, all items. All 4500 retail customers get the tags and EPC data for free RFID pays off! We use standards: open to customers and competitors The First One: Gerry Weber The Big One: Wal-Mart The Next One: You?
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