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RFID Investing for VFs Future. Agenda Who is VF CorporationWho is VF Corporation History of RFID at VFHistory of RFID at VF Current RFID Focus – Customer.

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Presentation on theme: "RFID Investing for VFs Future. Agenda Who is VF CorporationWho is VF Corporation History of RFID at VFHistory of RFID at VF Current RFID Focus – Customer."— Presentation transcript:

1 RFID Investing for VFs Future

2 Agenda Who is VF CorporationWho is VF Corporation History of RFID at VFHistory of RFID at VF Current RFID Focus – Customer ComplianceCurrent RFID Focus – Customer Compliance VFs Future RFID DirectionVFs Future RFID Direction

3 ® You may not know VF Corporation, but you know our brands... We Are VF

4 ä World's largest apparel supplier ä $5.2 billion in sales ä 150 countries/52,000 employees ä Strong brands with leading market shares ä Multiple channels of retail distribution ä Financially strong and conservatively managed We are VF

5 VF Coalitions Wrangler Lee Riders Rustler Brittania Timber Creek Earl Jean Gitano 20X Riggs Hero by Wrangler Maverick H.I.S Old Axe Vanity Fair Vassarette Bestform Lily of France Tommy Hilfiger* Curvation Gemma Lou Bolero Intima Cherry Variance Belcor Red Kap Bulwark Penn State Textile Horace Small Lee Sport CSA Chase Authentics* NFL Red* NFL White* VF Solutions E. Magrath Byron Nelson* Harley- Davidson* JanSport Eastpak The North Face Napapijri Kipling Nautica *licensed

6 Thumbnail of VFs Supply Chain 500 million units produced annually500 million units produced annually –across 500,000 SKUs –by over 1,000 owned/contracted factories –1,000s of miles from customers –delivered to 43 DCs –shipped to 47,000 retailers in 25+ countries and over 240,000 households –on-time, within selling seasons -- not years

7 History of RFID at VF Goal to achieve improvement in internal inventory controlGoal to achieve improvement in internal inventory control Started investigating RFID in 1993Started investigating RFID in 1993 Developed tag specifications in 1995Developed tag specifications in 1995 Identified 3 vendors that could meet specifications in 2000Identified 3 vendors that could meet specifications in 2000 Cost of tags exceeded benefitsCost of tags exceeded benefits –$0.35 cost per tag in 2000 –Need between ¼ and ½ billion tags per year Waiting for tag cost to drop to deployWaiting for tag cost to drop to deploy

8 Current RFID Focus Customer Compliance Goal to comply with Wal-Mart and other RFID tagging requirementsGoal to comply with Wal-Mart and other RFID tagging requirements –3 coalitions with 3 different WMS systems –7 distribution centers Project stepsProject steps –Evaluate current supply chain processes –Identify any potential cost benefits –Research technology solutions available –Identify RFID tagging solution –Implement RFID tagging solution

9 VFs Future RFID Direction Tactical compliance with customer initiativesTactical compliance with customer initiatives Strategic migration to item level taggingStrategic migration to item level tagging –Internal inventory control –Replacement of Electronic Article Surveillance (EAS) tag –Quality control –Product returns Tag prices must drop for item level tagging to become feasibleTag prices must drop for item level tagging to become feasible

10 RFID Challenges Technology issuesTechnology issues –Tag production capacity –Standardization –Tag costs –Read reliability Cultural issuesCultural issues –Public acceptance –Legislation –Privacy

11 Summary


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