Global RFID Supply Chain –Global RFID Supply Chain –From Source to POS Best Practise out of the Retail and Apparel Industry

Torsten StrauchBusiness Director RFID, EuropeCheckpoint Systems

Checkpoint – Your Shrink Management Partner

Company Profile

• Founded 1969Gl b l h d t i Th f N J• Global headquarters in Thorofare, New Jersey

• Global operations in more than 30 countries

• 2007 revenues of $835 million4 000 l• 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

Agenda

• Evolve to RFID – Business Case• Evolve to RFID - Practise• Checkpoint the RFID One-Stop-Shopp p p

Why RFID in Fashion ?Evolve to RFID – Business Case

Source ManagementSupply Chain Efficency

Store Operation- Speed- Transparency- Shrinkage- Shrinkage- Service

What is to do ?Evolve to RFID – Business Case

Label

Antenna Operations

RFID Reader

Middleware Integration &Installation

WorldwideService

ProcessDesign

Technologyselection BackendNetwork

Solution

... but how to Functionality calculate the

business case ?Integration (System Performance)

Application (System Management)

ROI matrixEvolve to RFID – Business Case

Supply Chain

KPIsTechnology Process Business

Supplier

Cost Revenue /

Forwarder

DC

Data Quality:

Indicator for the expected

read /

Cost Reduction:

How to speed up, increase accuracy and

Capital Costs:

Speed to market / shelf,

active OoSDC

Shop

read / system

performance

elemination of existing

process steps

active OoS Management, replenishment

monitoring

But where is consumer benefit ? Evolve to RFID – Business Case

buyingconsumer buying behaviour

trying - intelligent fitting room

touching / browsing

trying

- Real Time Location- intelligent shelf

e ge g oo

Preconditions like assortment of garments brand

seeing - Inventory visibility via RFID- Shrink Management

Preconditions like assortment of garments, brand, shop etc.

SummaryEvolve to RFID – Business Case

Benefits

Cost reductionCapital costsRevenueC h fl

Payment terms Cross Docking

OoSReplenishmentInventuryShrinkageCustomer Service

Cash flow

ProcessSupplier Supply Chain Store Operation

Picking accuracyASN...

Picking accuracyTurn over...

Customer ServiceMerchandise Management...

Forwarder

pp y p

Agenda

• Evolve to RFID – Business Case• Evolve to RFID - Practise• Checkpoint the RFID One-Stop-Shopp p p

Evolve to RFID

RFID in Practise

RetailHQ

Printshop Store

Label PrintingFacilities

Source ManagementStore

OperationPrintshop

Supply Chainefficency

Manufacturing

FreightForwarder

Warehousing

Source ManagementFrom source tagging to source management

Source tagging Picking

Source ManagementFrom source tagging to source management

S pplier

S l Ch i

Supplier1. Purchase Order

5. Shipment Data

2. Label Order Placement

• Technology• Smart packing tableSupply Chain

Portal4. Deliver Tag

3a. SSCC orSGTINDetails

Smart packing table• RFID Handheld• Others

i l b d1a. Purchase Order

• serial barcode• new packing lists in

combination with RFID carton label (SSCC)

3. Print Tag

carton label (SSCC)

Global FootprintFrom source tagging to source management

Evolve to RFID

Dual Evolve

• Through the development of our Dual EVOLVE Label technology our labelEVOLVE 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

Evolving to RFIDFrom source tagging to source management

"Our Tag It Easy! RFID solution is a breakthrough"Our Tag It Easy! RFID solution is a breakthrough,

showing how integrated RFID solutions benefit

both suppliers and retailer" says Dr. Gerd Wolfram,both suppliers and retailer says Dr. Gerd Wolfram,

Managing Director of MGI METRO Group Information

Technology.

Lesson‘s learnedFrom 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• Training, Training, Training .....• Tagging is not a problem• Picking accuracyPicking accuracy

Lemmi FashionEvolve to RFID – Supply Chain efficency

RFID Label P i t

Assign Case N

AssignShipmentdu

ctio

n

Print No. ShipmentNo.

Incoming Storage Picking /

Pro

dus

e

gGoods Storage g

Sorting

WarehouseReceipt

DeliveryNote / Invoice

POSWar

ehou

IncomingGoods Inventory POSR

etai

l

Evolve to RFID

RFID Hardware Solutions

• At the Manufacturing and DC levelRFID bl d H i R il• RFID enabled Hanging RailsMaintaining control of apparel products while being moved to the appropriate location

• RFID enabled Packing TablesEnsuring item level control of what is being packed in specific cases

• RFID controlled Dock DoorsEnabling the generation of Automatic Shipping Notices (ASNs)

Use Case: Metro, REAL, Kaufhof, Lemmi

Evolving to RFIDEvolve 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.

Evolving to RFIDEvolve to RFID – Supply Chain efficency

“For us it was important to be able to rely on competent general contractors for the realizationcompetent 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“operational rollout of the system

Advanced store operationEvolve to RFID – Store Operation

Smart ShelfIntelligent fitting room Checkview: CCTV integration

CheckPro C3 Dashboard

Alpha

CheckPro C3 Dashboard

RFID mobile

Evolve EAS

RFID mobile

Evolve Multi-purpose POS

RFID portals

RFID Zone Monitoring

Evolve Multi purpose POSSmart de-activation

RFID POS

Evolve to RFID

RFID Hardware Solutions

• At the Store level• RFID enabled entrance to storeRFID enabled entrance to store

Tracking all RFID tagged merchandise entering the store allowing quick consolidation

• RFID enabled front store/back store transition pointEnabling tracking of goods entering/leaving the sales floor

• RFID enabled fitting roomsE h i th t iEnhancing the customer experience while improving the visibility of your merchandize on the shop-floor

Use Case: Kaufhof

Evolve to RFID

Dual Evolve Hardware

• At front of storeEAS/RFID bl d i t f l• EAS/RFID enabled point of saleRead data from RFID tagged merchandise and provide the ability to deactivate EAS and RFID elements as required.q

• EAS/RFID enabled entry/exitsDesigned to overcome the issue of stray reads, traditionally associated with an RFID antennas –th D l EVOLVE A t li it it RFIDthe Dual EVOLVE Antenna limits its RFID detection to match the EAS detection zone.

EVOLVE P10Dual EVOLVEUse Case: Kaufhof

Lesson‘s learnedEvolve 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• Back Store / Front Store is a key application• Business Monitor for shop employees • Training Training TrainingTraining, Training, Training .....• Unwanted reads are still an issue

Agenda

• Evolve to RFID – Business Case• Evolve to RFID - Practise• Checkpoint the RFID One-Stop-Shopp p p

Checkpoint – Your Shrink Management Partner

Company Profile

RetailHQ

Printshop Store

Label PrintingFacilities

Printshop

Manufacturing

FreightForwarder

Warehousing

Where we are coming fromCheckpoint – 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 IntegrationSys e eg a o

• But so far for RFID we have had to focus on very specific areas• Antennas• TagsTags• Integration

Aquisition of OAT SystemsCheckpoint – The One-Stop-Shop

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

Solution approachWhat can Checkpoint do for you

Current CKP OfferingsFuture CKP Offerings

Merchandise Management System / SCM

Retailer ERP System

Item Levelnsio

n

g

Item Level Control System

ue C

hain

Exp

an

Readers, Antennas UHF ChipsSpecialist Antennas, Integration, Maintenance Tag mfg., Label Conversion, Source TaggingVa

lu

Integrated Order Fulfillment & Tracking Application

Advanced Shipping Notice Security Focus On Stock AvailabilityConsumer

(Returns, Warranty)Store

(Front-end)

Out of Stock

Store(Back-end)

Distribution Center

ShippingVendor(Manufacturer)

Why CheckpointWhat can Checkpoint do for you

• We know your business• We are driving your business caseWe are driving your business case• We are focussed

We are the One-Stop-Shop opportunity

Checkpoint, the right partner for shrink management and the right partner t h l b RFID h dto help you embrace RFID when you are ready.