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Bill Hardgrave Auburn University U.S.A. Note: this document is copyrighted ( 2013) and confidential; do not distribute or cite without explicit permission.

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Presentation on theme: "Bill Hardgrave Auburn University U.S.A. Note: this document is copyrighted ( 2013) and confidential; do not distribute or cite without explicit permission."— Presentation transcript:

1 Bill Hardgrave Auburn University U.S.A. Note: this document is copyrighted ( 2013) and confidential; do not distribute or cite without explicit permission.

2  2003 – 2006: pallet -> case; Wal-Mart, Metro, DoD Issue: inventory management in the supply chain; unprecedented ‘affordable’ visibility Epiphany: most problems at the store Result: shift to store-level visibility and item-level  2006 – present: item-level apparel/footwear; American Apparel, Dillard’s, Bloomingdale’s, J.C. Penney, Walmart, Macy’s, several in Europe Issue: inventory accuracy, loss prevention, etc. Epiphany: multi-use technology, start at the store and go up supply chain Result: more adopters, broader adoption

3 Technology DisruptiveSustainable RadicalIncremental

4  AKA evolutionary is one that introduces only minor changes to the status quo  Small improvement to existing processes  Focuses on cost or feature improvement in existing processes  Generally based on an established technology, used for years, refined, stable, few (if any) technology challenges.  Fairly predictable

5  AKA revolutionary or transformational is one that allows for great improvement in existing processes and the development of new processes  Generally, based on new technology or significant refinement of existing technology.  High uncertainty; unpredictable

6  A ‘disruptive’ technology is one that changes the bases of competition by changing the performance metrics along which firms compete.  It lacks refinement, often has performance problems, appeals to a limited audience, may not have a proven practical application (early on).  Highly uncertain and unpredictable

7 Disruptive Revolutionary Evolutionary

8  Is it Incremental?  Is it Radical?  Is it Disruptive? YES!

9  RFID = “barcoding on steroids”  Originally used as supply chain technology  Pallets and cases  Single use cases Out of stocks Cycle counting as a replacement for hand counting  Examples: Walmart, American Apparel

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11 Barcode

12  RFID = “barcoding on steroids”  Originally used as supply chain technology  Pallets and cases  Single use cases Out of stocks Cycle counting as a replacement for hand counting  Examples: Walmart, American Apparel

13  Item level  Multiple, aggregated use cases Cycle counting Inventory accuracy Out of stock Shelf replenishment Loss prevention Dressing room management Price change management  Examples: Macy’s, Walmart

14  Based on multiple studies … Before RFID:

15  Based on multiple studies … After RFID:

16 Inventory Accuracy Forecasts SalesCustomer satisfaction Replenish- ment Store execution Theft OOS Dressing room Faster checkout Locating product Excess inventory

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18  Item level  Multiple, aggregated use cases Cycle counting Inventory accuracy Out of stock Shelf replenishment Loss prevention Dressing room management, etc.  Examples: Macy’s, Walmart

19 DisruptedDisruptor Professional inventory counting RFID Electronic article surveillance (EAS) RFID BarcodesRFID HealthcareRFID and other sensors Food safety / food qualityRFID and other sensors Traditional retailOmni-channel retail – enabled by RFID

20  Don’t pave the cow paths …

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24  Don’t settle for process improvement when you can process enable. This may require best practices or standards.  Let awareness lead to prevention/solutions  Move to 0HIO (zero human intervention in operations)  Don’t start with Six Sigma processes

25  The people … will want it to be incremental  Upper management … will want it to be disruptive  RFID can be all three types Within the same company Along the supply chain  Early adopters viewed it as incremental, which hampered adoption. Now, many are using as radical and disruptive …

26 Bill Hardgrave


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