The RETAiL Alert Group
Advice ArticleThe Retailers Benefits Guide to Item Level EPC (Electronic Product Code) RFID 'bar-codes' Stock Tracking
RFID ‘bar-codes’ The Supply Chain Benefits for
your business in 2009…
Truth; Myths; the Reality; Some Useful Links
The RETAiL Alert Group is are getting a growing number of enquiries asking, is Retail Item Level RFID 'bar-codes' for us….us being Australian and New Zealand retailers, suppliers and importers?
See article on
American Apparel RFID 'bar-codes' Item Level
benefits
See
Wal-Mart RFID 'bar-codes' on Perpetual Inventory (PI)
The key retailer, supplier, importer question; 'is there a dollar in Retail Item Level RFID 'bar-codes' for us today?'
In 2009 it remind some of us of the questions and confusion surrounding the introduction of bar-codes and EDI in 1988.
The good news is that
understanding Retail Item Level RFID 'bar-codes' (Radio Frequency
Identification) is a brilliantly simple technology stock identification concept,
but as usual ‘the industry’ surrounds the basic simple concepts and benefits
with unnecessarily confusing technical terms and 'tags'
Mainly to extract large consulting fees from unsuspecting retailers and
suppliers.
Hopefully we can make Retail Item Level RFID 'bar-codes' easy to understand.
Where we start, think of
Retail Item Level RFID 'bar-codes' in simple terms as bar-codes on steroids
which can be read from a distance without direct staff input or
assistance.....WOW.
Exactly the way you are 'beeped' when you travel through your local toll ways.
The way you think about a
bar-code does not change; the bar-code is still the prime stock item identifier.
We will change the bar-code definition however, to an EPC (Electronic Product
Code).
The main differences between a bar-code identified product and Retail Item Level EPC RFID 'bar-codes' identified product are;
|
Bar-codes identify a product with a single bar-code number irrespective of quantity normally in a total retail location like a store. |
Retail Item Level EPC RFID 'bar-codes' products can be identified by bar-code and serial number. Retail Item Level EPC RFID 'bar-codes' (Electronic Product Code) can be reported in different locations within a store by tracking product by bar-code and serial number with close to 100% accuracy. This is a 'WOW' 2009 retail technology change. Retail Item Level EPC RFID 'bar-codes' provides new age supply chain tools to deliver fresh opportunities in the way that Australian and New Zealand retailers, suppliers and importers can leverage more profitable sales, reduce retail labour costs and shrinkage out of supply chain and shop floor processes. How, by knowing with real time clarity where stock is located, when stock is stolen or misplaced with close to 100% stock reporting accuracy. Bar-codes have
been great, but bar-codes only give an industry average of 85% stock
accuracy and a 'blurred' vision of where stock is located. |
|
Bar-codes are read with a bar-code reader or scanner close to the product. |
Retail Item Level EPC RFID 'bar-codes' products, cartons, totes, pallets can be read from a distance, the distance dependant on product type, environment and location. Retail Item Level EPC RFID 'bar-codes' products in some instances can be read through cartons or outer wrappers without staff directly involved. |
|
Bar-codes are normally unique to a total quantity in store. |
Retail Item Level EPC RFID 'bar-codes' products can identified by location in store; misplaced store location or in back-room reserve. |
|
Bar-coded product has to have cycle counts or stock-takes to identify theft. |
Retail Item Level EPC RFID 'bar-codes' products can be real time reported compared with cash register total. This allows for reporting on stock theft immediately if required, or a quick portable stock scan if more convenient. Retail Item Level EPC RFID 'bar-codes' stock can be identified by shelf and facing location if required and also audit display planograms for stock fill or misplaced items reporting. |
|
Bar-coded product is comparatively slow to cycle count or stock-take. |
Retail Item Level EPC RFID 'bar-codes' products are much quicker to cycle count or stock take. |
|
Bar-coded stock, even with ASN’s is comparatively slow to check and slow to get to shelf or rack. |
Retail Item Level EPC RFID 'bar-codes' stock can, in most instances be read through the carton and put straight to shelf or rack. Some retailers have reported over 50% improvement in time of stock receipt to shelf. |
|
Bar-codes are cheaper than RFID 'bar-codes' Tags |
Retail Item Level EPC RFID 'bar-codes' Tags used effectively can deliver double digit sales growth over ‘closed loop’ EDI Systems; over 50% reduction in time to shelf / rack; substantial reduction in stock counts and reductions in stock shrinkage. |
|
Suppliers are used to bar-coding and EDI |
Before 1986 there was no bar-coding or EDI, bar-code and EDI costs had to be ‘sold’ to suppliers and importers. In 2009 retailers need to ‘sell’ the benefits of EPC RFID 'bar-codes' source marking to suppliers and importers. In 2009 there are compelling Retail Item Level EPC RFID 'bar-codes' source marking sales increase benefits for suppliers and importers delivering more supplier and importer profits and cost savings? |
|
Do we have to Retail Item Level EPC RFID 'bar-codes' Tag at Item Level to get RFID 'bar-codes' benefits |
The end game is to get as much product as possible Retail Item Level EPC RFID 'bar-codes' identified but some retailers gain benefit by EPC RFID 'bar-codes' tagging cartons or inners only as well as pallets and totes. |
|
Do I have to change my current POS and Backend solution to integrate Retail Item Level EPC RFID 'bar-codes' source marked product. |
There are Retail Item Level EPC RFID 'bar-codes' solution sets which allow retailers to embed an end to end EPC RFID 'bar-codes' tracking and reporting solution with limited interference with POS functionality and Backend solutions. |
|
Are there different types of Retail Item Level EPC RFID 'bar-codes' Tags to choose from. |
Yes; Your choice......... |
|
Is there a consumer privacy issue with Retail Item Level EPC RFID 'bar-codes' Tags |
The same privacy paranoia is around regarding RFID 'bar-codes' stock
identification as existed when bar-codes were introduced in 1986. |
|
Will Retail Item level EPC RFID 'bar-codes' Tags cost more than bar-codes |
Obviously yes, but the bottom line outcomes for retailers, correctly, carefully implemented are as fantastic as were the bottom line benefits derived from the introduction of bar-codes and EDI into the Australian and New Zealand retail market in the late 80's. |
|
Can I get help to evaluate Retail Item Level EPC RFID 'bar-codes' opportunities for my organisation? |
Yes, take advantage of our one hour Retail Item Level EPC RFID 'bar-codes' discussion, or our two day detailed business assessment evaluation of EPC RFID 'bar-codes' benefits which specifically pertain to your business. |
Following is a table listing some of the commercial reasons why you as a retailer or supplier should consider Retail Item Level EPC RFID 'bar-codes' as the prime method of marking items, cartons, totes and pallets from 2009 onward;
|
Item Level Benefit Item |
'Classic' Bar-Code EDI |
Retail Item Level EPC RFID 'bar-codes' Benefits Above 'Classic' Bar-Code and Conventional EDI |
|
Sales Increase Benefit |
Minimum 20% increase in Sales |
Additional double digit sales increase above normal bar-code / EDI expectations |
|
Stock to Floor Benefits |
With Scan Pack at source stock able to be put to floor with minimal checking; with no Scan Pack at source all stock checked manually. |
Stock visibility by location in store; stock to shelf / rack quicker; substantial reduction in stock handling and receipt procedures. |
|
Stock Reduction Benefit |
At least one stock turn |
Stock turn improvement above EDI quantified by each retailer category. |
|
Stock Accuracy Benefit |
Industry average 85%..? Reasonably good for merchandising purposes but 'blurred' view of inventory in-store showing total inventory but not by location in-store.. |
98%+ Crystal Clear view of inventory by location in-store, in backroom/reserve or 'just received'. |
|
Stock Take Benefit |
If cycle counts employed stock accuracy improved substantially. |
Perpetual inventory if required by location, that is shop floor / backroom/reserve separately monitored. Mobile Scan counts if required any time. Stock accuracy theoretical against actual possible any time for shrinkage and stock replacement purposes. |
|
Stock Visibility Benefit |
Only in total held in store; no location visibility |
By shop floor; location on shop floor and backroom/reserve. |
|
Administration Cost Savings |
Including claims reduction from Scan Pack at least 15% |
Tracking of claims improved, margins vary implementation by implementation. |
|
Shop Floor Cost Savings |
Dependant on Scan Pack and Cycle Counts |
Up to 75% store team saving in stock handling procedures |
|
Shrinkage Benefits |
Visibility of stock losses and inaccuracies reduced if cycle counts employed. |
If required real time tracking of losses by shop floor location / backroom/reserve. Already proven shrinkage reduction during live trials. Sometimes possible to sync with existing shop front security systems. |
|
Space Use Benefit |
Less selling and reserve space required. |
Even better planning of shop floor and backroom/reserve space. With planograms accurate usage of facings and replenishment of same to maximise gross profit generation by location. |
We hope our Retailers Item Level Benefits Guide to EPC RFID 'bar-codes' has been helpful and useful.
A regular update of EPC RFID 'bar-codes' FAQ (Frequently Asked Questions) will be provided.
For further information on
EPC RFID 'bar-codes' we recommend that you go to the following links, industry
journal, RFID 'bar-codes' Vendor sites;
● EPCglobal
http://www.gs1au.org/products/epcglobal and download the EPCglobal Fact
Sheet and the EPC (EPCIS) FAQ Sheet.
● RFID 'bar-codes' Journal
http://www.RFID 'bar-codes'journal.com .
● VUE Technology Retail Item Level RFID 'bar-codes' Solution Provider
http://www.vuetechnology.com .
● SYSCAN (Sunshine Technologies) Australian RFID 'bar-codes' Solution
Provider
http://www.sunshinetechnologies.com.au
Trust our attempt at our Retailers Item Level RFID 'bar-codes' Benefits Guide to
EPC RFID 'bar-codes' is beneficial, assisting you on the journey to Retail Item
Level EPC RFID 'bar-codes' enable your business.
In this article we have only touched on simple concepts; for more detailed help
email Please provide more information on RFID 'bar-codes' 'bar-codes.
Tony Standley
The RETAiL
Alert Group
(Australia)
Mobile +61 (0)41 924 0497
e-mail
info@adsass.com.au
Fax +61 (0)2 9987 0633
Website
http://www.retailalert.com.au
THE
PEOPLE WHO GET RESULTS.................