business value of rfid in the apparel · pdf filebusiness value of rfid in the apparel...

Business Value of RFID in the Apparel Industry

Bill C. Hardgrave

Edwin & Karlee Bradberry Chair, Information Systems Dept.Executive Director, Information Technology Research Institute

Director, RFID Research Center

Note: this document is copyrighted ( 2010) and confidential; do not distribute or cite without explicit permission.

The process – retailer ROI• Proved that the technology worked• Worked with several retailers to understand

major use cases• Identified common use cases• Tested RFID against use cases in a

controlled setting• Examined RFID against use cases in real

settings (Walmart, Dillard’s, American Apparel, Bloomingdale’s, etc.)

What we know so far …• Common use cases

–Inventory accuracy–Out of stocks–Locating product–Loss prevention–Dressing room management–Price change management–Etc.

• Inventory accuracy became the focus …

The big four

Inventory Accuracy

Inventory Accuracy

Sales

Cycle Counting

BarcodeIn 3 different settings, a 96% reduction in labor to cycle count (RFID handheld vs. barcode scanner)

Barcode avg = 200 items per

hour

RFID avg = 5000 items per hour

Inventory Accuracy• Based on multiple studies …

Before RFID:

Inventory Accuracy• Based on multiple studies …

After RFID:

Inventory Accuracy

Inventory Accuracy

OOS

Excess inventory

6%, 7%, 12% reductions

4.9 months supply to 2 months

2%, 3%, 10% reductions

Supplier benefit

Inventory Accuracy

Inventory Accuracy

SalesCustomer satisfaction

OOS

Excess inventory

2%, 3%, 14%, 15%

Reduce markdowns /

increase margins

2010: the year of the supplierProve that the technology works

• Work with several suppliers to understand major use cases

• Identify common use cases• Test RFID against use cases in a controlled

setting• Examine RFID against use cases in real

settings• Call to action: (1) suppliers to participate; (2)

retailers to participate

© Impinj 2010

RFID Source Tagging:Road Map to SuccessLarry ArnsteinSr. Director, Business Development

Success Means…

MINIMIZED DISRUPTION

RELIABLE ENCODING

MINIMIZED COSTS

SERIAL NUMBER

PRODUCT INFO

ENCODING: RELIABLE AND ACCURATE

EPC

“RFID Inside”

ENCODEWrite data to tag

ENCODEWrite data to tag

COMMISSIONLink EPC code with database

COMMISSIONLink EPC code with database

Bulk encoding 33

11 Industrial-scale in-line

22 Off-the-shelf printers

PackagingManufacturer

PackagingManufacturer

BrandBrand

BrandDCs

BrandDCs

GarmentManufacturer

GarmentManufacturer

Retailer, DC & Stores

Bulk encoding 33

11 In-line encoding

22 Off-the-shelf printers

• >275 tags/minute

• Proven

• For specialists

• 40 to 100 tags/minute

• Goes anywhere

• More handling

• 500-1000 tags/minute

• Unique for RFID

• Same SKU

Inline EncodingInline Encoding

Stray PreventionStray Prevention

ReliabilityReliability

Bulk EncodingBulk Encoding

Near-Field AntennasMonza® Tag Chips Speedway® ReadersIndy® Reader

Chips

Simple and Reliable RFIDSimple and Reliable RFIDSimple and Reliable RFIDSimple and Reliable RFID

BrandManufacturing

ImpinjRFID

WiproIT Services

Tag & Pkg

Retailer

Tag & Pkg

WiproIT Services

© 2009 Wipro Ltd - Confidential24 © 2010 Wipro Ltd - Confidential24

Wipro Technologies’ in the Apparel Industry

Mani Subramaniam, Vice President, Business Advisory Services, Retail CPG Transportation & Government, Wipro [email protected]


Edge Server Services

Event Integration

Technology Infrastructure Support Services

RFID Data Analytics

StrategyConsulting

Application Development & Deployment

E-PedigreeAsset/ Yard Management

Mandate Compliance Kit

Smart Store

Point Solutions

RFID Centers of Excellence in India and Portugal

Concept Store: physical store in the Electronic City Campus at Bangalore, where promote innovations in retail (also with RFID) were exhibited

Dedicated RFID labs

White papers presented at MIT, SCOR

Dedicated RFID functional, technical consultants across Industry verticals

Wipro RFID Expertise & Competencies


Wipro’s RFID Track Record

Company RFIDRoadmap

Business Case ROI

POC Pilot Deploy & Rollout

RFIDAnalytics

Infrastr.Support

UK Apparel Retailer

Indian Apparel Retailer

US Discount Retailer

US Grocery Retailer

US High-Tech maker

Indian Fashion Retailer

US Automotive Maker

Kuwait Electronic Retailer

PT Grocery & Spec. Retailer

SP Telecom

PT Fashion Retailer

PT Library

PT Door Manufacturer


Bulk Commissioning Business Process

Impinj Commissioning SystemImpinj Commissioning System

Low Level Reader OperationLow Level Reader Operation

ICS Interface

Operator's UI &Serial Number Management

DiagnosticData

EnterpriseIntegration


Apparel Commissioning Application

• Administrator– Manage Items,

Customers, Shipping units, Serial Number Blocks

– EPC Construction

• Operator– Scan case label– Success/Failure feedback

• Technician– Access to ICS diagnostic

data– Qualifying new shipping

units

XYZ Co.XYZ Co.XYZ Co.

XYZ Co.


Planning and Manufacturing

Supply Chain Execution

Customer

Raw Material Sourcing

Distribution Center

CustomersRetailers / Outlets

Consumers

Manufacturing

Design

Process Consulting

Product Evaluation and Implementation

Custom Development & Deployment

Maintenance and Enhancement

• Point of Sales• Portal and Content Management

• Media Planning and Evaluation

• Customer Loyalty• Multi Channel Retailing

Solutions spanning across Apparel & Footwear Value Chain

• Supply Planning• Demand Forecasting

• Product lifecycle Management

• Product Information Management

• Warehouse Management Systems

• Trade Promotion Management

• Supply Chain Analytics• BI/DW• Inventory Management

• RFID Cross Docking• Pre‐pack optimization


Wipro Expertise – Across the Apparel Value Chain

MANUFACTURERS - CPG DISTRIBUTORS RETAILERS

TRANSPORTATION AND WAREHOUSING

Leading US Based Sportswear and Athletic equipment company

• Development of a customized state-of-art warehouse management system

• To have a single view of the organization in terms of reporting and analytics. Transform from a multi-application disparate system to a integrated view

Leading North American Intimate Apparel Manufacturer

• Get an efficient integrated system to do planning for manufacturing at diversified global vendor base for footwear and apparel

Leading Indian Apparel Retailer• RFID pilot for a leading apparel

retailer in India

Distributing company• Maintain Supply Chain

Extranet• Develop a new generation

supply chain, customer facing extranet portal

US-based Apparel & Footwear Retailer

• Develop a system for maintaining inventory at store, reducing the stock-outs and increasing the inventory turns

UK-based Apparel Retailer• Development of the online

foods ordering system• Loss Prevention System• RFID pilot

Global 3PL companies• Develop a new customer service centre with 100% paperless

operations, accurate shipments and schedule adherence• Development of a web based container management system• Business Intelligence solution to enable analysis of shipment

information• Shipment Information system and Order Response system


RFID Engagement - Leading Apparel Retailer

How Wipro helpedBefore After

31

Items were received from the factory and shipped out of the DC through item-level barcode scanning.

Time-consuming for Factory Outward and Warehouse Inward/Outward operations

6000 items per shift (8 hours).

75000 Items moving in & out of DC

No visibility of items from Factory to DC

Manual Errors

Reduced Labor efficiency

Improved shipment visibility

100% data accuracy

Improved Efficiency. Can read up to 80 items in 30 seconds. Approximately 60,000 items could be received or shipped per day which is ten times more than the current barcode system.

Reduced manual errors; 5 times increase in labor utilization

Able to scan multiple items during inward and outward operations at Distribution Center.

Improved Inventory visibility in factory & Warehouse

Wipro as Systems integrator architected & provided the overall RFID solution

Helped the client with:

RFID enabling Factory & Warehouse applications

Pre-programmed RFID tags for fashion garments at item and carton level

Provided HF (high frequency) pass through readers at warehouse inward and outward location to reduce scanning time and improve efficiency

A leading apparel retailer and manufacturer in India which evolved from the manufacturing domain controlling the entire value chain in apparel retailing with retail outlets


CAGR of 32% in the last 5 years

Part of NYSE’s Technology-Media-Telecom (TMT) Index, NSE Nifty Index & BSE Sensex

Sustained growth

US $ Billion in Revenues

$ 5.1*

191 Fortune 1000/ global 500 clients

863 active clients as on Mar 31, 2009 with a repeat business ratio of over 95%

863

Global Clients

Partner to industryleaders

97, 810**

Associates

Attracts the

best talent

97810 associates from 57 nationalities

One of the top 3 recruiters in India

50 +

Centers of excellence

50+ CoEs to develop technology & domain accelerators solutions

Emerging Technology areas for ‘08-’09: SOA, UC, Business Analytics, SaaS, Mobility, Virtualization, Web 2.0 and Green IT

Industry expertise

54

Countries

53 Global Development Centers

Global presence

* Includes Global IT services business and Products (Products revenue - as per Indian GAAP converted to USD based on realized exchange rate of IT Services business)

**Includes IT business and BPO

Wipro Profile – IT Services and Products

Questions?Bill Hardgrave Director, RFID Research Center, Sam M. Walton College of BusinessUniversity of ArkansasEmail: [email protected]: 479.575.6099

Larry ArnsteinSenior Director, Business Development ImpinjEmail: [email protected]

Mani Subramaniam Vice President, Business Advisory Services, Retail CPG Transportation & Government Wipro TechnologiesEmail [email protected]

For copies of white papers, visithttp://itri.uark.edu/research

Keyword: RFID

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