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Place sponsor logo here Preparing for RFID Barcode the perfect pre-cursor, but limited Itemized inventory Tagging at item-level, box and palette Mobile devices, workstations, printers Software systems Imperfections Longer than manual count Misrepresentation Little traceability still high distortion No Protection

Place sponsor logo here Next Generation Barcode: RFID Inventory Visibility Improved accuracy New data Identifies and removes distortion Loss Prevention and reporting Labor Management Cycle counting 96% faster Execution enablement Customer services Item availability Kiosks, self-checkout, fitting applications Suggestive selling

Place sponsor logo here Keys to Implementation Identify benefits to explore Efficient, accurate visibility of inventory Prepare for the results Pilot/Test will require extra work Getting tagged Two systems to satisfy Attractive possibilities Get read where items are being handled Replace RFID read for barcode scan RFID reads are fast and accurate Research new information

Place sponsor logo here RFID at American Apparel Tagging Pilot we applied a second tag Rollout: tagging at factory Receiving Pilot: Box barcode scan w/ item-level RFID Rollout: RFID item-level Sales Floor Replenishment POS Pilot: OSD and RFID solution Rollout: RFID Pilot: Barcode and RFID reader box Rollout: RFID scan Inventory: Counting and discrepancies (RFID vs. ERP) Pilot: Cycle count mobile readers vs. manual Rollout: No manual counts, push RFID into ERP

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RFID Software Deployment in the Retail Soft Goods Market

Agenda Who is Tyco Retail Solutions Inventory Issues & the Software Vision Software Requirements & Capabilities Software Evaluation Criteria Conclusion

Who Is TRS / Vue Technology? RFID technology company Software platform RF / sensor networking products Thin film antenna technology Eight years of experience focused exclusively on item level RFID in retail Industry leader in retail focused item level RFID with deployments in North America, Europe and Asia Acquired by Tyco International in October 2008 Item level inventory solution compliments EAS Expands the ADT loss prevention value proposition Address lost sales from out-of-stocks Long term vision allow retailers to optimize the operations of retail stores

Store Inventory Issues On-floor Availability Operational Inefficiencies Out of stocks Misplaced items Replenishment time Restocking time Inventory inaccuracy Markdowns Shrink Internal and External Dressing Rooms Front exits Customer Satisfaction Availability of the item within the store Time to find the right item

Inventory Visibility Perpetual Front Room Inventory Tracking Real-Time Item- Level tracking of products in dressing rooms Periodic Mobile Inventory Tracking Item Movement Between Front and Backroom Perpetual or periodic Back Room Inventory Tracking Real-Time Item- Level tracking of products at POS including self checkout Real-Time Item- Level tracking of products leaving the store Front Room Back Room Real-Time Item- Level Visibility for Store Personnel Real-Time Receiving and Automated Returns Enterprise Data & Network Management

Software Requirements Commissioning Middleware Productivity Applications Mobile Applications Reporting and Alerting Enterprise Capability Application Interface

Commissioning Generates EPCs Licenses, verifies, and expires EPC numbers Support for multiple sites, products, etc. Track and trace capabilities

Middleware RFID Device Management Data Filtering / Management RFID Network Management Device/Network Alerts Planogram Support

Productivity Applications Receiving Replenishment Cycle Counting POS and Returns Transfers Product Search Planogram Mgmt. Tag Writing/Printing

Cycle Counting Product Search Mobile Applications RFID and non-rfid enabled Reporting RFID and non-rfid enabled

Reporting and Alerting Online Inventory Visibility User defined queries Real-time Views Designed for Store, Area, Enterprise Managers Misplaced items, OOS, replenishment, expired, about to expire, etc. Exception Based PDF/XLS/Etc. Reports Actionable Exception Based Designed for Store Operations Personnel Alerts Email, Cell Phone, Pager Exception Based User defined thresholds

Enterprise Device and Data Management Considerations Ability to aggregate and view RFID data across the enterprise Remote RFID device and network setup Remote monitoring and maintenance

Application Interfaces Open, standards-based interface approaches ALE, Web Services Ability to integrate with any 3 rd party or legacy applications Receiving, Replenishment, POS, ERP, Inventory, Merchandise Locator, etc.

Real-Time Inventory Visibility Perpetual Front Room Inventory Tracking Real-Time Item- Level tracking of products at POS including self checkout Real-Time Item- Level tracking of products leaving the store Real-Time Item- Level tracking of products in dressing rooms Periodic Mobile Inventory Tracking Front Room Back Room Real-Time Item- Level Visibility for Store Personnel Item Movement Between Front and Backroom Commissioning Middleware Productivity Applications Mobile Applications Reporting and Alerting Enterprise Capability Application Interface Perpetual or periodic Back Room Inventory Tracking Real-Time Receiving and Automated Returns Enterprise Data & Network Management

Software Evaluation Criteria Integrated software offering Provides rapid time to market for RFID implementations Minimizes development time and cost and deployment risks Extensive out-of-box application functionality Minimizes need for custom development Reduces time to value Open software architecture Provides expandability and extensibility Minimizes development time and costs Enterprise Class capability Ensures scalability Retail customer tested - Store level retail experience Ensures proven results Reduces risk Eliminates vendor education

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Retail Information Services

Tagging options vary with project goals. Pilot approach Phased approach Full deployment approach

Pilot Project Options Varies by retailer» Selected categories within one or more stores» Full store pilots in one or more stores, sometimes limited distribution areas

Pilot Tagging Options Tag at store level» Temporary solution using store labor Tag at distribution level» Usually temporary depending on supply chain network Tag at the source» Typically too complex for pilot projects

Phased Project Options Varies by retailer» Selected categories within many stores» Full store pilots in many stores, usually coordinated with distribution areas

Phased Tagging Options Tag at store level» Temporary solution using store labor Tag at distribution level» Usually a better alternative than store tagging depending on supply chain network Tag at the source» Advantageous if it can be achieved with suppliers

Full Deployment Project Options Varies by by retailer» Selected categories within all stores Flow new tags with new season Tag-up exceptions in the stores» Full store pilots in all stores (all items, all stores) Flow new tags with new season regionally or use logical organization of vendor communities

Full Deployment Tagging Options Tag at store level» Does not scale well Tag at distribution level» Can be an option depending on supply chain network Tag at the source» Most efficient and cost-effective

Tagging Method Types Pilots» Add a tag» Add an adhesive label Phased roll-outs and full deployments» Integrate into the tag or label

Encoding Methods (Commissioning) Pilots» Add a tag» Add an adhesive label Associate the new epc to the existing UPC/SKU 0100 0001 1111 0101 1001 1000 0011 1011 0100 0001 1111 0101 1001 1000 0011 1011 0100 0001 1111 0101 1001 1000 0011 1011 = 7 30407 12021 4 RFID Number SKU.

Encoding Methods (Commissioning) Phased roll-outs and full deployments» Integrate directly into the tag or label Print, encode and apply at manufacturing source or at a designated point in the supply chain

It s easy to tag-up! Minimal hardware and software in-store» Fixed or mobile encoding devices linked to epc catalog of numbers and retailer database Mobile printers, commissioning stations, handheld devices» Existing store scanners» Tag and label options to meet retailer requirements

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