Accuracy and Visibility in an Omni-Channel Retail World ... · –Omni-channel retail is here to...

© 2014 GS1 US ALL RIGHTS RESERVED

Accuracy and Visibility in an

Omni-Channel Retail World:

Moving Beyond the Barcode

to EPC-Enabled RFID

October 16, 2014


TODAY’S TOPICS

• GS1 US Overview

• Industry Trends and Imperatives

• Educating the Industry

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GS1 US Overview

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© 2014 GS1 US ALL RIGHTS RESERVED 4

GS1 Standards are the global

language of business —

a language for identifying, capturing,

and sharing information automatically

and accurately,

so that anyone who wants that

information can understand it, no matter

who or where they are.


THE GLOBAL LANGUAGE OF BUSINESS

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GS1 Standards

Identify GS1 Identification Numbers

Companies, Products, Locations,

Logistics, Assets, and Services

Capture GS1 Data Carriers

Barcodes and EPC-enabled RFID

Share GS1 Data Exchange

Master Data, Transactional Data,

and Physical Event Data

© 2014 GS1 US ALL RIGHTS RESERVED © 2014 GS1 US ALL RIGHTS RESERVED

OUR VALUE TO INDUSTRIES AND COMPANIES

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SOLVING INDUSTRY NEEDS

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Industry

Problem /

Opportunity

Requirements Solutions Adoption

& Usage

GS1® helps industry

identify a problem

or opportunity and

organize to solve it

GS1 helps industry

define their needs

/goals and create

adoption plans

GS1 develops:

• Standards

• Guidelines

• Tools

• Readiness Programs

• Education & Training

GS1 measures

how industry adopts

and uses standardized

technology


Industry Trends and Imperatives

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INDUSTRY IMPERATIVES

Network-

Wide

Inventory

Visibility &

Accuracy

• The ability to see “the last item” within the enterprise

and consumer-direct supplier partners

• Delivering on the promise to the consumer

Web-

Ready

Products

& Smarter

Analytics

• Improving speed to web for both product attributes and

images

• Meeting consumer demand for rich product information

Optimized

Fulfillment

Strategies

• Ensuring that processes, infrastructure and systems are

streamlined and integrated to meet desired service

levels and delivery commitments

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ORGANIZATIONAL PRIORITIES

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What is the focus for industry?

EXTERNAL INTERNAL

INFRASTRUCTURE Channel Management

Cost to Serve

Demand Fulfillment

Shareholder Value

PARTNER NETWORK

Supply Chain Efficiency

& Effectiveness

Logistics Management

Supplier Lifecycle Management

Procure to Pay

CONSUMER Empowered Customer

& Seamless Engagement

Experience Delivery &

Operational Excellence


GARMENT

MANUFACTURER

TRANSPORTATION

& LOGISTICS

DISTRIBUTION RETAIL STORE

VISIBILITY FROM SOURCE-TO CONSUMER

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USE CASES AND TECHNOLOGY

• Use cases receiving top billing

– Retailer (Primary)

• Inventory accuracy

• In-Store out of stock (replenishment execution)

• Loss detection

• Locating product (e.g., display compliance)

– Retailer (Secondary)

• Loss Prevention (beyond loss detection), Cycle counting strategies,

“Point” of sale, Fixed vs handheld: incremental valuation, Enhance the

customer experience

– Brands

• Receiving accuracy

• Pick pack accuracy

• Shipping accuracy

Use cases courtesy of The RFID Lab at Auburn University and The University of Arkansas

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EPC LABELS ARE BEING PLACED ON

• Apparel and Accessories (Replenishment and Fashion )

• Consumer Electronics (small and large)

• Footwear

• Household (Furniture, Kitchen and Cooking , Bedding, Linens, Small

kitchen appliances and accessories)

• Jewelry

• Returnable Assets (Totes, Carts, etc)

• IDTechEx Research reports the North American market for UHF labels:

– RFID marker has grown 17% in one year to $9.2B in 2014

– 3 Billion labels in 2013 and expected to reach 3.9 billion tags in 2014

• VDC predicts between 50-60 Billion labels (UHF and HF) worldwide by

2015

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Educating the Industry

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RETAILER START GUIDE

1. Research, Investigate and

Learn

– Understand the basics of the

technology and the

requirements to implement

successfully

– Identify business cases that

likely fit you

2. Define system scope and

objectives for your

initiative

– Hardware and software

requirements and cost

– Training and education of

personnel

– Finance

– Marketing

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3. Establish an internal team

– Merchants

– Store

– IT

– LP

– Finance

– Marketing

4. Develop an education strategy for key executives

– Leverage GS1 US and the retailers who have preceded

you • GS1 US Item Level Readiness Program can provide varying levels of education,

tools and resources

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5. Determine business priority that you can be successful in early

– Internally controlled: assure display stock on floor avoiding lost sales (Shoe locator)

– Verify in stock position on floor/right location to reduce lost sales (start with basics?)

– Omni channel readiness to be competitive service

– Minimize internal shrink

• Enhance Reverse Logistics cost reduction

6. Define system scope objectives for your initiative

– Fashion basics inventory accuracy

– Fashion apparel and fashion shoes

– Shoe, luggage, accessories display audit

– Reports to monitor the process….get samples from other retailers, GS1

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Task Involved Roles Information Timing

Assign internal team

Approve plan/timeline

Approve suppliers

Set Detail Plan

Develop partner expectations

compliance agreements

Technology process change

plan

Prep for pilots (tags; tag up)

Launch 1 store pilot

Multi store pilot

Rollout

Full category rollout

Omni Channel Ready

7. Develop pilot detail

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SUPPLIER START GUIDE

1. Review the business case

– Evaluate from supplier and customer perspectives

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Business Value How

Inventory Accuracy Cycle count physical inventory - frequency, tie-in to financials (OTB)

Increased Sales Reduce stock outs

Lowering cost of inventory Faster turns/lowered end of season payout

Improve customer experience & sales Improve stockroom-to-selling floor replenishment

Labor reallocation Reduce in-store labor for cycle counts

Electronic surveillance Reduce shrink (shortage)

Omni-channel Locate product



2. Define Scope of Implementation

– Category - Product Type, Replenishment/Fashion

– Brand – Survey other customer shipments

– Product Ship Points - Existing or new RFID-equipped facility, define equipment needs

– Customer Readiness – helps understand requirements, planning, lead times, etc.

• Playing: Does the technology work?

• Investigating: What is the business case?

• Road Mapping: Defined deployment strategy

• Phased Deployment: Category, Department

• Full Deployment: Everything

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3. Build Project Team

– Internal

• Sales

• Logistics

• Operations

• DC

• IT

– External

• RETAILER:

– Sales, Logistics, Operations, DC, IT

• 3rd PARTY SOLUTION PROVIDERS

– Equipment, Media, IT

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4. Implementation – Getting your product tagged

– Ticket / Tag Approval by Customer • Identify your retailer

– Source Tagging at Factory • What product delivery can be impacted for source tagging?

– DC Transition Tagging • What product delivery will need to be transition stickered by Supplier DC(s)? What

inventory is currently in Supplier DC(s) that will need transition stickering?

– Customer Tag-up • Will customer be executing in-store tag up for current inventory? What is the timing?

– Requirements • Ticket Supplier, Media, Inlay, Serialization

– Non-Compliance • Exemption from Chargebacks

– Tag Cost

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5. Evaluating Tagged Item Performance

– Performance Metrics

• Baseline metrics pre-RFID, evaluation post-RFID

implementation

– What does success look like?

• How & frequency of measurements?

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EPC ADOPTION ROADMAP

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•Nine interactive steps • Each icon links to live, web-based

content

• Best practices

• Case studies

• Checklists

• Guidelines

• Presentations

• ROI calculators

• Whitepapers


ON-DEMAND WEBINAR “SNIPPETS”

• RFID History

• What Business Problem Does RFID Solve?

• What Business Problem are YOU Solving?

• Moving Beyond Compliance

• Key Things to Know to Get Started

• Consumer Privacy and the Use of the EPC Symbol

• Overview of the EPC Adoption Roadmap and Tools

• Technology Components of an RFID System: Tags

• Technology Components of an RFID System: Tag Performance and Readers

• Technology Components of an RFID System: Software

• Overview of GS1 Standards (Identify, Capture and Share)

• Serialization Basics and EPC

• Serial Number Assignment and Management

• Moving from U.P.C. to EPC

• An Implementation Checklist

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• Supplement Adoption Roadmap

• Just-in-time learning

• 15 topics


INDUSTRY CALL TO ACTION

On May 13th, GS1 US distributed an RFID industry outreach

letter to the trading partners of Bon-Ton, Hudson’s Bay,

Kohl’s, Lord & Taylor, Macy’s, and Saks Fifth Avenue.

• Here are three key reasons we encourage you to get involved now:

– Omni-channel retail is here to stay. RFID is foundational to delivering a successful omni-

channel strategy to delight your customers - in every product category.

– RFID has moved beyond inventory replenishment. It is an essential component to

enable the supply chain visibility and inventory accuracy needed to know what’s available,

where it’s located and how to best deliver it—helping deliver on the omni-channel customer

promise.

– A growing number of retailers already have programs in place and are rolling-out RFID,

and are realizing important benefits for their customers. That is why it is important to begin

developing your plans to implement now.

Retailers are ready. Technology providers are able. Education and resources are

available. Supplier benefits are documented. The time to get involved is now.

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INDUSTRY SUPPORT

On October 2, GS1 US started to distribute

an RFID brief titled “Commonly Asked RFID

Questions: Dispelling the Myths”.

• The Retail Sector began strategically deploying item level

Radio Frequency Identification (RFID) in late 2008. Since

that time there have been misunderstandings about the

technology, its use case feasibility and its ROI benefits.

• This brief sets the record straight on RFID - providing

definitive answers to the industry’s most common

questions about what RFID is and what it can do.

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http://www.gs1us.org/DesktopModules/Bring2mind/DMX/Download.aspx?command=core_download&entryid=1433&PortalId=0&TabId=785


CONTACT INFORMATION

Melanie F. Nuce

Vice President, Industry Engagement

Apparel and General Merchandise

GS1 US

TEL +1 303.655.8640

EMAIL [email protected]

W EB www.GS1US.org/ApparelGM

Connect with the GS1 US community on

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Appendix

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GS1 STANDARDS IN ACTION


FOCUS AREAS AND KEY INDUSTRIES

FOCUS AREAS

• B2B2C

• Data Quality and

Data Management

• Inventory Efficiency

• Product and Location

Identification

• Traceability and

Safety

KEY INDUSTRIES

• Apparel and General

Merchandise

• Foodservice

• Fresh Foods

• Healthcare

• Retail Grocery

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APPAREL AND GENERAL MERCHANDISE INITIATIVE

Allowing trading partners to follow their

products from source to consumer—

ensuring that the right item is in the right

place at the right time as it moves through

the supply chain and across retail channels

KEY INDUSTRY OBJECTIVES

• Improve inventory accuracy

• Enhance shipping accuracy and confidence

• Facilitate the distribution of accurate, standardized

product data

• Build better trading partner and customer

relationships

• Enable the successful implementation of EPC-

enabled RFID technology

• Increase speed-to-market

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APPAREL AND GENERAL MERCHANDISE


INITIATIVE STRUCTURE

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Industry Sponsors Group

Executive Leadership Committee

Technical Advisory Committee

Omni-Channel Ready Merchandise Item Level RFID

Implementation

Tagged Item Performance

Prototype Project

Executive Level Peer-to-Peer Outreach

Product Images & Data Attributes

Hardlines Sporting Goods Apparel & Footwear

Accessories

EPC Item Level Readiness Program

User Group

Point of Sale Data Sharing

(forming)

E-Commerce Fulfillment

Hangers Sub-Committee


THE LEADING CATAGORIES FOR DEPLOYMENT

• Children’s

• Footwear (hanging sandals, boxed

slippers, men's & women's shoes )

• Handbags

• Home – (Cookware, Cutlery,

Kitchen Electrics, Personal Care),

• Jewelry – (Accessories, Fashion,

Fine, Watches)

• Leather Goods

• Luggage

• Men’s - (Activewear, Belts, Denim, Dress

Shirts, Gifts/Jewelry, Innerwear,

Neckwear, Slacks/Bottoms,

Sleepwear/Robes, Socks, Suits/Sport

coats, Underwear, Designer Sportwear,

Leather goods)

• Sunglasses

• Textiles - Pillows & Pads, Sheets, Table

Linens

• Women’s Activewear, Belts, Denim,

Dresses, Hosiery/ Leggings/ Tights,

Neckwear, Shoes, Socks, Sportwear,

Suits

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CATEGORY FOCUS DISCUSSION

Product Category

Accessories Footwear (e.g.

hanging sandals, boxed

slippers)

Bedding

Cutlery

Denim

Denim (All FOB's)

Handbags

Hosiery/Leggings/Tights

Innerwear

Jewelry (Fashion ONLY)

Luggage

Men’s Belts

Men’s Dress Shirts

Men’s Slacks/Bottoms

Men’s Sleepwear and Robes

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Product Category

Men’s Suit Separates/Suits/

Men’s Underwear Men's

Collections/Impulse/Designer/

Men's Shoes

Men's Small Leather Goods

Pillows & Pads

Socks

Sportcoats Sportswear

Textiles (Home) Women’s Shoes (Display and

Box)

Women’s Spec. Sizes/Sportswear

Women's & Men's Belts Women's Small Leather Goods

Women's Suits

Product Category Sunglasses

Men’s Gifts & Jewelry

Kitchen Electrics

Personal Care

Cookware

Table Linens

Children’s

Men’s Neckwear

Housewares

Fine Jewelry

Currently Deployed

2014 Focus


SUPPLIER MERCHANDISE MARKING –

PROJECT PLAN PHASE CATEGORY TASK / ACTIVITY

Getting Started

Create Project Plan

Define for customer and brand

Confirm use of generic/current ticket format

Communicate/coordinate activities with Supplier Overseas teams

Volume Projections

Provide to Ticket Supplier

Initial unit volume by delivery and brand

Initial unit volume by production countries of origin

Rolling 4-month volume projections by country/by ticket type

Process Flow

Definition

Define process for ticket orders

Define process to develop new RFID ticket formats

Define process for new ticket format development & testing

Define process for tracking Service Bureau order production

Define functional flow for transition tagging

Define process for handling customer product returns

Development & Approvals

Integrated Ticket

Create integrated ticket format

Review & approve ticket proof

Obtain customer approval of ticket format

Review & approve Service Bureau's 1st production samples of integrated ticket

Transition Sticker

Create transition ticket format

Review & approve ticket proof

Obtain customer approval of ticket format

Review & approve Ticket Suppliers 1st production samples of transition sticker

Carton Label

Create wrap-around label formats to include RFID indicator

Review & approve carton label proof

Product Ticketing

Source Tagging

Discuss product deliveries and transition schedule

Prepare rollout strategy for Service Bureaus

Review & approve ticket samples from Service Bureau's 1st production run

Transition Tagging

Provide projections of inventory volume to convert in Supplier DC

Identify inventory to be transition tagged

Order transition sticker stock for Supplier DC

Provide training to DC personnel

Review & approve transition sticker samples from Supplier DC(s) 1st production run

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