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Data analysis and Decision Support Platform for Apparel Manufacturing Industry

Byron Yeung Vice President, Apparel Labeling Solutions, Asia Pacific

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Corporate Snapshot • Founded in 1969, list on the NYSE — “CKP” • Corporate headquarters in New Jersey, USA • Global organization, 5,000+ employees in more than 30 countries

worldwide • Installed base of over 1.7 Million RF devices • 100 billion products secured with Checkpoint’s labels • 45+ years leader of RF for retail • 15+ years leading the RFID industry • 17+ print & global fulfillment centers: needlepoint, consolidation & logistics • Strong partnerships with more than half of world’s top 200 retailers

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RFID Tags

Readers

Device Management

System Integration

Software & Analytics

Merchandise Visibility Solutions

Shrink Management Solutions

Apparel Labeling Solutions

Source Store Business Scope

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Why Retailers need RFID?

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New Shopper Expectations Are Higher…

Do they have my size in stock?

74% of online shoppers want to know what’s in stock BEFORE visiting a store

74% – Google/IPSOS Study 2014

75% of online shoppers will choose to purchase from a retailer who offers expedited pickup/delivery options vs one who doesn’t 75%

– Forrester/Accenture Study 2014

Can we pick it up on our way home?

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…but It’s Hard For Retailers To Answer

81% of retailers say inaccurate store level data is an obstacle to omni-channel sales

– RSR Research 2014 81%

20-30 min

20-30 min = Average time to pick and fulfill a single online order in-store =

– Surveyed retailers at RILA Supply Chain 2015

I’m sorry honey, I placed an order on the web site, but they

don’t have it ready. This is so frustrating!

Let’s try another site. This one doesn’t give me the availability,

and I can’t pick it up today.

Root Cause: INACCURATE INVENTORY DATA + INEFFICIENT PROCESSES Solution: RFID Inventory Management + Process Automation

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CONSIDER THE IMPACT ON RETAILERS…

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Retailers’ Fundamental Challenges … both in-store and omni-channel:

Attract and retain shoppers with the right product, at the right place, at the right time, while improving shopper’s experience.

Optimize operations to reduce cost, time to shelf, and maximize shelf availability while facing inaccurate perpetual inventory.

Enhance the shopping experience with product presentation and service, while protecting merchandise from theft.

How to Sell More and Lose Less

MARKET TRENDS

Evolving our position from “merchandise protection” to “Merchandise Availability”

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From Source Management… …Through Distribution… …To Retail Store

Retail Pain Points: Key Challenges at Each Step of the Value Chain

Outsourced, overseas manufacturing

Packing & shipping errors

Manufacturing variances

Outsourced logistics Receiving &

packing errors International shipments Poor visibility across

supply chain Complex cross-docking

Lack of accurate inventory Out-of-stocks Costly markdowns Theft Expensive receiving

processes

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Retail Store

Manufacturer

Distribution Center

DC Receiving

DC Shipping

Retail Store Receiving

Point-of-Sale

FS/BS Replenish- ment

SALE Inventory Audit

Point-of-Exit

Source Tagging

Merchandise Visibility from Source to Store

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Source Management Merchandise Visibility: RFID Tag Acquisition Order Processing

Check•Net®

Print Shop

Retailer places an online e-Order for RFID Labels from Check•Net®

Check•Net® confirms/sends Label Order Status Back to Customer

Retailer/Manufacturer

Label Order Status

RFID Label Order Filled

$9.99 12945

$9.99 12945

$9.99 12945

$9.99 12945

Cloud

Labels arrive at Manufacturer

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Global Foot Print of Service Bureaus

US

Netherlands UK

Italy Turkey

BD S China (DG)

Sri Lanka

S Korea N China (ZJG)

S India

Pakistan N India

Indonesia

Checkpoint

Vietnam

Morocco Tunisia

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Manufacturing Solutions Solution Components: • Tags • Tag@Source • CheckNet • Printing • EPC Number

Management

Solution Areas: • Tagging & Encoding • ASN Shipping

ASN Shipping

Printing Service Bureau

• 19 encoding locations

RFID Tags • Pocket Tag • Integrated

Hang Tag • Sticker • Hard Tag

(recycled) • Woven

• Creative Design services

Online Ordering Platform

Tag@Source • Program can

accommodate both hard and soft tagging for different types of merchandise

Open EPC Number

Management

Source Tagging Laboratory

• Tag certification, and guidelines for tag application & placement

ECOPET Printing Capabilities

• High speed Print-on-Demand and encoding services

• Hardware, software & systems integration

• Any service bureau / vendor can obtain unique numbers

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DC Solutions Solution Components: • RFID Tunnels • RFID Portals • RFID Tables • RFID & Dual RF-RFID Tags • RFID-enabled Use Cases:

Pick/Pack, Ship, Receive, Bulk Commissioning

Solution Areas: • Tagging & Encoding • ASN Shipping • ASN Receiving • Omnichannel Order

Fulfillment

Omnichannel Order Fulfillment • Automated pick-pack-reserve-ship processes

RFID Tunnel for Boxes

• Reading/encoding boxes containing up to 200 items at conveyor speeds of 1.2 m/sec

RFID Tunnel for Hanging Garments • Reading/encoding

bundles of up to 450 items at speed of 24 m/min or 0,4 m/s

Packing Table • Reading/encoding

items for shipping confirmation/omni-channel fulfillment

In-Plant Printing • Printing, encoding

and EPC Number Management

Bulk Commissioning • Encoding full-

size pallets (3,600+ items)

ASN Shipping & Receiving • RFID-enabled

Shipping Tunnels & Software

RFID Portal/ Fixed Readers

• Used for dock doors, trucks

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In-Store Solutions Solution Components: • RFID Point of Exit • RFID Automated Cycle

Counting • RFID Tables • RFID & Dual RF-RFID Tags • RFID-enabled Use Cases:

Pick/Pack, Ship, Receive, Bulk Commissioning

Solution Areas: • Inventory Management

(Replenishment, Cycle Counting) • Omnichannel • Loss Prevention • Customer Experience • Tagging & Encoding • ASN Receiving

Omnichannel Order Fulfillment • Automated pick-pack-reserve-ship processes

Cycle Counting • Handheld &

Hands-Free options

Replenishment • Prioritized replenishment

for inbound shipments, high-demand items

Process Compliance • Dashboards

monitor cycle counting and vendor compliance

High Theft Asset Protection • RTLS tracking of

high-value items

Point-of-Sale • RFID-enabled

deactivation

Point-of-Exit • Pedestal and

Overhead Options with RFID-based EAS, visitor counting

Display Compliance Device

Monitoring • Real-time

status of sensor infrastructure

• Software, hardware and tag solution

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Merchandise Visibility Delivers Tangible Benefits for Retailers

“Now is the time to invest in RFID-enabled processes because of significant progress in the following areas:

• Defined and achievable use cases • Reliable and effective hardware • Well-established and tested

standards • Well-architected, highly usable, and

configurable application software • Emergence of full RFID-enabled

system providers.” -- Leslie Hand,

IDC Retail Insights

Increase in Sales of at least 6% – Improvement in replenishment of previously out-of-stock items

Reduction in Working Capital of 10-20% – Reduction in on-hand safety stock – Reduction in non-working inventory

Reduction in Out-of-Stocks by 30%+

Reduction in Operational Costs – Reduced item handling cost across supply chain – Significant reduction in labor required during shipping,

receiving and cycle counting operations

Improvement in Supply Chain Efficiencies – Picking accuracy increased from 82% to 99% – Significant reduction in mis-shipments between locations in supply chain

Reduction in Shrink – Both internal and external

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RFID RETAIL INNOVATION- examples of real case studies We help retailers solve unique challenges.

OMNI-CHANNEL INVENTORY AVAILABILITY

North American Department Store with 800+ Locations

HANDS-FREE MERCHANDISE VISIBILITY

Global Apparel & Footwear Brand and Retailer

OPTIMIZING INVENTORY IN NEW STORE FORMATS

Global Sporting Goods Retailer

INCREASING SALES OF “NEVER OUT-OF-STOCK” ITEMS

EU Department Store with 1,000+ Locations

ENHANCING CUSTOMER EXPERIENCE WITH “INVISIBLE” LOSS PREVENTION

Apparel Lifestyle Retailer with 500+ Mall Stores

“Invisible” RFID Loss Prevention, Inventory Management for Mall Stores with open entrances

Invites customers to browse merchandise while protecting inventory

Automated cycle counting and shelf replenishment

RFID-tagged stores experience 10-12% uplift in sales

RFID Inventory management and loss prevention integrated with POS systems

Enables expansion beyond superstores to smaller-format urban outlets which require more tightly-managed inventory

Rapid deployment of chain-wide RFID inventory mgt solution (50-100 stores/week) – hardware, software, integration, training

Increased shelf availability drives same store sales, customer satisfaction

RFID inventory management eliminates frozen inventory

Ensuring shelf availability of high-demand items increases same store sales

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Complete RFID Solution

provider