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Omnichannel And IoT: The Perfect RFID Storm Presented bySponsored by.

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Presentation on theme: "Omnichannel And IoT: The Perfect RFID Storm Presented bySponsored by."— Presentation transcript:

1 Omnichannel And IoT: The Perfect RFID Storm Presented bySponsored by

2 #HolidayCCS About CCS 2014 7 Webinars, 4 Days Sessions covering Store Ops, X-Channel, Loyalty, Big Data & more Featuring industry analysts and consultants Free for Retail executives http://ccs.retailtouchpoints.com/holiday-2014

3 #HolidayCCS Follow The Webcast On Twitter #HolidayCCS @ConnectConsumer @RTouchPoints

4 #HolidayCCS About Retail TouchPoints Launched in 2007 More than 28,000 subscribers Provide executives with relevant, insightful content Free Resources such as White Papers, E-book, Webinars, Research and Podcasts www. RetailTouchPoints.com

5 #HolidayCCS BrightTALK

6 #HolidayCCS Today’s Panelists Richard Mader Director Emeritus, ARTS Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR John-Pierre Kamel Principal RFID Sherpas

7 #HolidayCCS What Does RFID Look Like? RFID Sherpas. Confidential. Not for distribution. Usually involves a handheld reader Rapid cycle counts of inventory Number of counts depends on product category, Use Cases Does not need to update inventory…but should for best results Photo Source: Motorola

8 #HolidayCCS RFID Solution Components RFID Sherpas. Confidential. Not for distribution. Paper TicketAdhesive LabelHard TagSewn-In Label RFID Readers RFID Tags

9 #HolidayCCS A Quick Recap Of Item Level RFID in Recent Years Item level projects picking up steam Testing new categories, focused on replenishment Department Store focus Item level projects picking up steam Testing new categories, focused on replenishment Department Store focus 2008 - 2010 Omni-Channel is a driver of RFID adoption Display compliance drives fast ROI Expansion beyond replenishment into jewelry Omni-Channel is a driver of RFID adoption Display compliance drives fast ROI Expansion beyond replenishment into jewelry 2010 - 2012 Round Rock Patent issues resolved Companies open up about successes Expansion into Fashion Luxury segment growth Uptick in European deployments (e.g. Asda, Decathlon, M&S) Round Rock Patent issues resolved Companies open up about successes Expansion into Fashion Luxury segment growth Uptick in European deployments (e.g. Asda, Decathlon, M&S) 2013 - 2014

10 #HolidayCCS 2008-2012

11 #HolidayCCS 2008-2012

12 #HolidayCCS 2013-2014

13 #HolidayCCS 2013-2014

14 #HolidayCCS “Implementation of this next-generation technology is one of the most significant changes ever in how the Group’s stores operate.” Pablo Isla Chairman & CEO July 2014 2013-2014

15 #HolidayCCS Latest News from Macy’s (2014) RFID-enabled departments outperformed controls by 10% from 09-2013 to 05-2014 Advanced program beyond Replenishment and into several Fashion categories Timely replenishment of the sales floor is now an objective, in addition to inventory update The ability to make single unit SKUs available to online shoppers has been a big win in Omni-channel Decreased the number of undisplayed SCCs in the Footwear and Luggage to under 5%, compared to 25-30% pre-RFID

16 #HolidayCCS RFID’s Appeal To Retailers Margin contribution from increased Full Price Sell-Through Margin contribution from higher Unit Sales Reduced shrink (internal & external) Labor productivity improvements Less working capital tied up in Inventory Repurposing of Loss Prevention budget dollars Aligns with Omni-Channel, Mobility initiatives

17 #HolidayCCS RFID in Retail Long time coming, since late 1990’s Cost vs. Benefit – Shortage – Out of stock Other priorities Y2K E-commerce

18 #HolidayCCS The Silver Bullet Consumer Centric Retail And Omni Channel

19 #HolidayCCS Omni Channel Serving the customer as they desire. Features: – Buy on line, pickup in store (44% to 58%) – Buy in one store, ship from another (Urban Outfitters) – Buy items in store plus items via on-line device in store and pay one sale – Fulfill E-commerce order from stores.

20 #HolidayCCS Why Omni Channel John Lewis experienced a 22.6% increase in on-line sales during Christmas 2013. Accounting for 31.8% of total Christmas sales as click and collect orders were up by 61.8% over previous year. (ComputerWorld.com) Macy CEO Terry Lundgren said at Goldman Sachs conference this month that they can ship direct to customers from all stores, and that pick-up in store results in 125% of intended order. (Marketing Daily)

21 #HolidayCCS Omni Channel Critical Success factor Nearly 100% accurate item level inventory Cannot disappoint the Customer – Drive to store purchased item not available – Buy on line never receive at home It can happen (THD example) Cost of buffer stock offsets sales gains What level of risk are you willing to accept?

22 #HolidayCCS SKU Inventory Accuracy Industry average approximately 70% – Thanks to Bar codes for sales recording. RFID can improve to 95+% – 98% per Checkpoint – 27% improvement per RFID Research Center Assume 100 customer store pick ups, RFID changes 25 of these to these

23 #HolidayCCS SKU Inventory Retain Accuracy Physical Inventory – Auburn University 20,000 items per hours using RFID vs. 500 via barcodes. Staff Discipline – Train processes – Monitor to enforce

24 #HolidayCCS Key RFID Use Cases Within The Four Walls On-Floor Availability – Display Compliance – Reduce Out-of-Shelf Asset Protection Outside of the Four Walls Out-of-Stocks Eliminate Frozen Inventory Planning and Allocation Omni-Channel Support Interactive Retail Inventory Accuracy Reduction/Elimination of Manual Stock Counts Anti-Counterfeiting Anti-Diversion Supply Chain Visibility

25 #HolidayCCS Increase the “universe of product” you can make available across all channels – Reduce buffer stock as low as possible for In-Store Pick-up and Store-to-Store transactions – Significantly decrease decline rates of Fulfill-from-Store transactions, thereby decreasing split ships and extra labor of searching in multiple stores Enhances Omni-Channel

26 #HolidayCCS Enhances Omni-Channel – Increase Store-to-Store orders by ensuring all available SKUs/SCC are displayed for sale, even if it is a onesie – Can significantly compress the window between purchase and pickup – Accuracy enhances mobility capabilities and allows for more efficient location based selling and alerting

27 #HolidayCCS Internet of Things (IoT)

28 #HolidayCCS IoT Value to Retail 1.76 Trillion less than 50% realized (Cisco) Opportunities – Omni order and pay anywhere – Intelligent pricing (Shelf labels) – Product movement – Equipment monitor and control – Tailored promotions – Customer service (Wi-Fi in store)

29 #HolidayCCS Concerns Privacy Mobile and RFID, NFC one standard? Active Tags, $2 vs. $.05 Self driving cars

30 #HolidayCCS Things I’d Like (TiL) Find my “stuff” (Tile) Clean out the “Frig” Instructions for use

31 #HolidayCCS Q&A

32 #HolidayCCS Q&A Richard Mader Director Emeritus, ARTS Debbie Hauss Editor-in-Chief Retail TouchPoints MODERATOR John-Pierre Kamel Principal, RFID Sherpas

33 #HolidayCCS Thank You For Joining Us The next Holiday Connected Consumer Series session…


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