From Source to POS. Best Practise out of the Retail and Apparel Industry. Torsten Strauch Business Director RFID, Europe Checkpoint Systems

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2 Global RFID Supply Chain From Source to POS Best Practise out of the Retail and Apparel Industry Torsten Strauch Business Director RFID, Europe Checkpoint Systems

3 Company Profile Checkpoint Your Shrink Management Partner Founded 1969 Global l headquarters in Thorofare, New Jersey Global operations in more than 30 countries 2007 revenues of $835 million 4,000 employees 100 billion products secured with RF EAS since inception Most of world s 200 largest retailers are Checkpoint customers Market leadership in Shrink Management Solutions

4 Agenda Evolve to RFID Business Case Evolve to RFID - Practise Checkpoint the RFID One-Stop-Shop p

5 Why RFID in Fashion? Evolve to RFID Business Case Source Management Supply Chain Efficency Store Operation - Speed - Transparency - Shrinkage - Service

6 What is to do? Evolve to RFID Business Case Process Design Technology selection Label Antenna RFID Reader Network Middleware Backend Integration & Installation Operations Worldwide Service Functionality Solution... but how to calculate the business case? Integration (System Performance) Application (System Management)

7 ROI matrix Evolve to RFID Business Case Supply Chain KPIs Technology Process Business Supplier Forwarder DC Shop Data Quality: Indicator for the expected read / system performance Cost Reduction: How to speed up, increase accuracy and elemination of existing process steps Revenue / Capital Costs: Speed to market / shelf, active OoS Management, replenishment monitoring

8 Evolve to RFID Business Case But where is consumer benefit? consumer buying behaviour buying trying touching / browsing -intelligent fitting room - Real Time Location - intelligent shelf seeing Preconditions like assortment of garments, brand, shop etc. - Inventory visibility via RFID - Shrink Management

9 Summary Evolve to RFID Business Case Benefits Cost reduction Capital costs Revenue Cash flow Payment terms Picking accuracy ASN... Cross Docking Picking accuracy Turn over... OoS Replenishment Inventury Shrinkage Customer Service Merchandise Management... Supplier Supply Chain Store Operation Forwarder Process

10 Agenda Evolve to RFID Business Case Evolve to RFID - Practise Checkpoint the RFID One-Stop-Shop p

11 RFID in Practise Evolve to RFID Retail HQ Label Printing Facilities Printshop Source Management Store Operation Store Supply Chain efficency Manufacturing Freight Forwarder Warehousing

12 Source Management From source tagging to source management Source tagging Picking

13 Source Management From source tagging to source management Supply Chain Portal 1a. Purchase Order 1. Purchase Order 5. Shipment Data 3a. SSCC or SGTIN Details 2. Label Order Placement Supplier 4. Deliver Tag 3. Print Tag Technology Smart packing table RFID Handheld Others serial barcode new packing lists in combination with RFID carton label (SSCC)

14 Global Footprint From source tagging to source management

15 Dual Evolve Evolve to RFID Through the development of our Dual EVOLVE Label technology our label solutions can now be both EAS and RFID enabled. Using the Dual EVOLVE Label we can now work with our customers to develop use cases for improved inventory visibility through the application of a single Dual EVOLVE label at source without compromising the EAS systems already in place EAS+ RFID Use Case: European Apparel Retailer Trial

16 Evolving to RFID From source tagging to source management "Our Tag It Easy! RFID solution is a breakthrough, showing how integrated RFID solutions benefit both suppliers and retailer" says Dr. Gerd Wolfram, Managing Director of MGI METRO Group Information Technology.

17 Lesson s learned From source tagging to source management Understand the customer process and define SOPs Use of a very strong IT platform - CheckNet Data communication Solution approach: Keep it super simple Training, Training, Training... Tagging is not a problem Picking accuracy

18 Lemmi Fashion Evolve to RFID Supply Chain efficency Prod duction RFID Label Pi Print Assign Case No. Assign Shipment No. Warehou use Incoming Goods Warehouse Receipt Storage Delivery Note / Invoice Picking / Sorting POS Retail Incoming Goods Inventory POS

19 Evolve to RFID RFID Hardware Solutions At the Manufacturing and DC level RFID enabled Hanging Rails Maintaining control of apparel products while being moved to the appropriate location RFID enabled Packing Tables Ensuring item level control of what is being packed in specific cases RFID controlled Dock Doors Enabling the generation of Automatic Shipping Notices (ASNs) Use Case: Metro, REAL, Kaufhof, Lemmi

20 Evolving to RFID Evolve to RFID Supply Chain efficency In Checkpoint, we have found an experienced and efficient supplier which not only does justice to our production requirements, but is also able to supply high-quality label and RFID systems at a reasonable price. In addition, Checkpoint is currently the only supplier which can offer both installation and RFID support in Europe and Asia, explains Götz Pfeifferling, CIO Lemmi Fashion.

21 Evolving to RFID Evolve to RFID Supply Chain efficency For us it was important to be able to rely on competent general contractors for the realization of our concept summarized Dr. Gerd Wolfram, Managing Director of MGI METRO Group Information Technology, The service offered by Checkpoint was one of the key factors for the smooth operational rollout of the system

22 Advanced store operation Evolve to RFID Store Operation Intelligent fitting room Smart Shelf Checkview: CCTV integration CheckPro C3 Dashboard Alpha RFID mobile Evolve EAS RFID portals RFID Zone Monitoring RFID POS Evolve Multi-purpose POS Smart de-activation

23 RFID Hardware Solutions Evolve to RFID At the Store level RFID enabled entrance to store Tracking all RFID tagged merchandise entering the store allowing quick consolidation RFID enabled front store/back store transition point Enabling tracking of goods entering/leaving the sales floor RFID enabled fitting rooms Enhancing the customer experience while improving the visibility of your merchandize on the shop-floor Use Case: Kaufhof

24 Dual Evolve Hardware Evolve to RFID At front of store EAS/RFID enabled point of sale Read data from RFID tagged merchandise and provide the ability to deactivate EAS and RFID elements as required. EAS/RFID enabled entry/exits Designed to overcome the issue of stray reads, traditionally associated with an RFID antennas the Dual EVOLVE Antenna limits it its RFID detection to match the EAS detection zone. Use Case: Kaufhof EVOLVE Dual EVOLVE P10

25 Lesson s learned Evolve to RFID Store Operation Focus on key business driver Combine EAS and RFID Solution approach: Keep it simple don t oversize the setup Ongoing RFID label supply Back Store / Front Store is a key application Business Monitor for shop employees Training, Training, Training... Unwanted reads are still an issue

26 Agenda Evolve to RFID Business Case Evolve to RFID - Practise Checkpoint the RFID One-Stop-Shop p

27 Company Profile Checkpoint Your Shrink Management Partner Retail HQ Label Printing Facilities Printshop Store Manufacturing Freight Forwarder Warehousing

28 Where we are coming from Checkpoint The One-Stop-Shop Checkpoint are the EAS One-Stop-Shop, we supply Hardware Consumables and re-usables EAS related MIS solutions Source Tagging/Service Bureau System Integration But so far for RFID we have had to focus on very specific areas Antennas Tags Integration

29 Checkpoint The One-Stop-Shop Aquisition of OAT Systems O th 23 d f J Ch k i t S t fi li d th On the 23rd of June, Checkpoint Systems finalised the acquisition of OAT Systems, the globally recognised leader in RFID Middleware company

30 Solution approach What can Checkpoint do for you Current CKP Offerings Future CKP Offerings Retailer ERP System Merchandise Management System / SCM Valu ue Chain Expan nsion Item Level Control System Readers, Antennas UHF Chips Specialist Antennas, Integration, Maintenance Tag mfg., Label Conversion, Source Tagging Integrated Order Fulfillment & Tracking Application Vendor (Manufacturer) Advanced Shipping Notice Shipping Distribution Center Out of Stock Store (Back-end) Security Focus On Stock Availability Consumer (Returns, Warranty) Store (Front-end)

31 Why Checkpoint What can Checkpoint do for you We know your business We are driving your business case We are focussed We are the One-Stop-Shop opportunity

32 Checkpoint, the right partner for shrink management and the right partner to help you embrace RFID when you are ready.

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