“Within a year, item level tagging is expected to be well on its way to becoming ubiquitous in the retail supply chain.”
Will you be ready? The number of item-level RFID pilots already underway or planned by large retail chains and apparel brand
s is accelerating, led by Macy’s, J.C. Penny’s and American Apparel. Looking at this, plus the growing list of pilots Truecount is working on now and has in the pipeline for the next six months, it’s clear the time is now for retailers of every size to implement RFID.
To ensure your RFID pilot delivers on its promises, here are five factors that in our experience have proven to be essential for success.
1. Clear Goals: Launching a pilot in your operation will help you understand the full potential of RFID and how it will impact other aspects of your business. Item-level RFID brings multiple benefits to your operation, including much higher degrees of inventory accuracy, greater visibility into inventory/inventory processes and increased intelligence regarding loss. These new levels of visibility and traceability mean better forecasting and a more perfectly balanced inventory; positive factors that may cause your team to rethink marketing strategies. In addition, RFID streamlines work flows and reduces labor costs. How will this affect your business? Take time to prioritize and define what you expect to accomplish with your pilot. Then clearly communicate your priorities and goals to your internal teams and to the RFID solutions provider/consultant you select as a partner.
2. The Right Partner: The more your RFID provider/consultant understands RFID technology within the context of retail environments, the better they can guide you through a pilot that achieves your goals. Experience counts. A knowledgeable RFID provider, with solid expertise in your industry, can help determine your biggest pain points and challenges relating to inventory management. Once the pain points are accurately identified, you can more precisely establish how to apply RFID to correct the affected areas.
3. Comprehensive Site Survey: Request an onsite visit and ask the RFID software company to provide a detailed analysis and evaluation of your current processes and facilities. This is essential for defining a clear scope focused on deployment, installation, equipment needed, and software requirements. As an example, Truecount begins with an overall assessment of your current processes and goals in order to determine how best to utilize RFID to attain maximum ROI for your business case. Our assessments include information such as which stores are capable and ready to deploy RFID, how many stores should be targeted for deployment of RFID–and when. We analyze the best ways to merge, integrate and incorporate our advanced RFID technology with your current business model and existing processes. Additionally, we provide all of the details for tagging.
4. The Right Tag—Correctly Applied: There is no “one size fits all” RFID tag. In fact, three of the most important decisions regarding the implementation of any RFID pilot involve the tag: which tag to use; how to apply it and where—at what point—in the supply chain to do the tagging. Therefore, a critical success factor for your pilot is selecting the right tag, and then making the right choices for where and how that tag should be applied. There are three basic tag types, active, passive and semi-passive; plus low,
high and ultra-high frequency ranges. Tags differ in their read and write capabilities and their durability for rugged use. Tags can be disposable or reusable; expensive or costly. They can be applied at multiple key points along the supply chain, including the manufacturing source, the distribution center, at the point of shipping or in the retail store. To learn more about tags specific to your operation, schedule a complimentary Truecount consultation.
5. The Right “Built-in” Features: Not all RFID software is created equal. There are many variables in features and function. As a result, you will often find failed pilots due to the lack of experience evident in the software. Look for an RFID software company that offers you highly advanced features such as in-line tagging and non-RFID receive, already built into the software.
Explore the RFID marketplace and you’ll find that most RFID solutions were designed for uses other than retail. These solutions must be customized and re-designed for each client. They often lack important intrinsic features that can accelerate your project, strengthen your business case and enhance your ROI.
Truecount was designed specifically for the retail industry, with rich industry-specific features built right into our software. Truecount’s in-line tagging, for example, gives you the ability to tag items at any point within the supply chain that works best for your business needs, whether it’s at the manufacturing source, the distribution center or in your stores.
6. Full Management “Buy-in”: RFID is a game-changing technology. The overall success of your RFID pilot depends on the buy-in of your team. Make sure management fully supports the pilot and has a clear understanding of how the pilot’s ROI will be used to determine the go-forward criteria for deciding on next steps: rolling out RFID to the entire retail network, or further up the supply chain.
If you are considering a pilot, our experienced, knowledgeable consultants can answer all of your questions and guide you on every aspect of implementation. Call for a complimentary consultation 1-800-403-7118 x1 or email success@truecount.com