Business Value of RFID in the Apparel · PDF fileBusiness Value of RFID in the Apparel...
Transcript of 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
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
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
“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
Near-Field AntennasMonza® Tag Chips Speedway® ReadersIndy® Reader
Chips
Simple and Reliable RFIDSimple and Reliable RFIDSimple and Reliable RFIDSimple and Reliable RFID
© 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]
© 2009 Wipro Ltd - Confidential25 © 2010 Wipro Ltd - Confidential25
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
© 2009 Wipro Ltd - Confidential26 © 2010 Wipro Ltd - Confidential26
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
© 2009 Wipro Ltd - Confidential27 © 2010 Wipro Ltd - Confidential27
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
© 2009 Wipro Ltd - Confidential28 © 2010 Wipro Ltd - Confidential28
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.
© 2009 Wipro Ltd - Confidential29 © 2010 Wipro Ltd - Confidential29
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
© 2009 Wipro Ltd - Confidential30 © 2010 Wipro Ltd - Confidential30
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
© 2009 Wipro Ltd - Confidential31 © 2010 Wipro Ltd - Confidential31
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
© 2009 Wipro Ltd - Confidential32 © 2010 Wipro Ltd - Confidential32
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