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Nedap

Nedap: Leading the Innovation Wave in Retail

Artikel | von Nedap Deutschland | 09. Dezember 2014
Store !D is a complete portfolio of integrated RFID readers and supporting software that has specifically been designed to operate in a retail environment. This means that the devices have been designed with scalability and design in mind. Store !D is a complete portfolio of integrated RFID readers and supporting software that has specifically been designed to operate in a retail environment. This means that the devices have been designed with scalability and design in mind. BILD: Nedap Retail

Solutions of Nedap make stores around the world more sustainable, more profitable, and a safer place

Around the globe, services and solutions for retailers in loss prevention, stock management, and store monitoring are needed. Nedap‘s aim is to simplify retail management while improving your customers’ shopping experience. Many RFID applications developed by Nedap, including solutions at Adler Modemärkte or Wolky, demonstrate impressively how RFID technology optimizes the in-store inventory accuracy.

Interview with Rob Schuurman, Managing Director of Nedap Retail

Focus on Retail

The retail industry is facing many challenges. In particular, the rapidly growing online trading has an impact on the market share of retail stores. What is the solution?

 

Rob SchuurmanRob Schuurman Online shopping is not just an additional channel, it has changed the consumers mindset and expectations in terms of speed, availability, convenience, and service. Retailers who are able to adopt this mindset into their formula will benefit from this behavior. RFID technology can help them to get the stock-data 99,9% accurate in order to improve replenishment and shelf availability and increase customer service and convenience substantially. Consumers are used to having the right color and size available whenever required, RFID enables retailers to meet this expectation. An additional benefit of accurate information is the opportunity to display the instore merchandise on their online platform. It enables consumers to purchase online at physical stores.

Which of the intrusive problems, such as low margins, high storage costs, competition from the Internet, and inventory discrepancies, can be solved by the use of RFID?

Replenishment processes are currently often based on inaccurate information. Especially popular items could be unavailable while the system says otherwise. This could be due to wrong deliveries, mishandled returns, or incorrectly scanned items at the point-of-sale. RFID enables the retailer to count more frequently and easily, which will lead to more accurate information. More accurate information will eradicate inventory differences and improve stock accuracy substantially. As a result, availability and sales will improve without the need to increase stock levels. Finally, lower stock and more accurate information will result in less items to be sold at high discounts at the end of a season. This will have a positive effect on the overall margin. Smaller retailers already apply RFID to have accurate and real-time stock information in order to offer their merchandise to consumers via their web shop. Consumers can pick it up, the retailer can deliver the same day via a courier or it can be send directly to the consumer. These retailers already compete with the existing web shops due to better customer service.

What potential does the RFID technology have to revolutionize the common applications?

For the first time in history, physical objects get a unique identity and a way to be read, without even seeing or touching the item. These properties will unleash an unlimited number of applications we cannot even imagine right now. Especially when you make this available via API’s on the internet. Consumers will consult Google Maps to have real time insight in ‘what’s available on the shelf?’ in their favorite store; they will be able to buy it via their smart phone and pick it up whenever it is convenient for them.

RFID - A solution for the future?

RFID is the next big thing. However, at Nedap we believe in hybrid solutions. RFID is not the solution for every problem. It should be applied in cases where the technology has major benefits. In some cases, barcode or traditional RF technology is still the best solution.

Focus on Projects and successful rollouts

Adler Modemärkte

The decision for the extensive RFID technology rollout at Adler Modemärkte AG is based on the positive results of a long-term RFID pilot project carried out in seven stores in Germany and Luxemburg. The goal of promoting sales is to be achieved by significantly increasing the accuracy of stocktaking, full transparency of the flow of goods and continuous replenishment of the entire range of textiles without errors. RFID technology will be used to continually update stock quantities, correctly trigger repeat orders and avoid out-of-stock situations. Increased process efficiency is expected to accelerate workflows and have a positive impact on customer satisfaction. Nedap‘s Store !D RFID hardware is installed at the checkouts, store entrances and areas between the stockroom and the sales floor. The Store !D RFID technology is used to monitor and manage all current stock in the stockroom and on the sales floor and reduce loss of goods by way of electronic article surveillance (EAS).

Wolky

The Dutch footwear brand Wolky has decided to attach RFID labels during the production of its shoes. The Wolky barcode label on the box will be replaced by a Wolky barcode label with integrated Nedap RFID label. The new labels will be introduced in a part of the range, but the aim is to apply RFID labels to all items from the Wolky winter collection onwards. The RFID labels can be scanned in large numbers in a short period of time with the Nedap RFID scanner both in the logistics chain and in the store. As a result, any deviations between the items sent and the items received, as well as any differences between actual stock levels and the administrative stock levels, will be determined immediately and corrected. This will lead to less ‚no‘ sales, lower inventory costs, and reduced losses, in addition to increased turnover and improved margins.

What are the biggest challenges in implementing an RFID project from the perspective of Nedap?

From an RFID perspective, every item is unique and has a unique ID. ERP and POS systems are not used to processing unique ID’s. The integration with the POS or ERP systems can therefore be challenging. For Nedap, this was the reason to come up with an integration platform; !D Cloud. The !D Cloud uses standard interfaces based on barcode. !D Cloud makes it easy to integrate RFID devices into the local and existing software. For store employees, using RFID means a different way of working. They have to be more consistent and working-procedures have to be more standardized. We have learned that employees have to experience a benefit from using this technology in order to implement RFID successfully.

Focus on Applications

How many RFID applications has Nedap already implemented at retail companies worldwide?

Nedap has implemented RFID applications in about 750 stores.

Nedap’s !D Hand for easy and accurate fast stock taking.Nedap’s !D Hand for easy and accurate fast stock taking. The single button operation makes the !D Hand very easy to work with for store staff.

From which countries and sectors do you perceive an increased demand for RFID solutions?

Years ago - RFID on an item level - was being introduced as a technology that pretty much solves all the problems in the supply chain for every retailer. Today, RFID is being applied in areas where retailers have 80% of the benefits with 20% of the investments. Starting with the low hanging fruit means starting with fashion and sports items. Food and health & beauty products are still a bit more complicated to tag in a sufficient way. In Western and Northern Europe, as well as the US, we see an increased demand for RFID solutions; Countries where labor costs are relatively high and consumers are demanding. Some other countries are early adopters like Chili and Hong Kong.

What is the ratio of Nedap complete solutions to solutions that are integrated for individual processes?

It differs from customer to customer. Some customers go for a ‘big bang’ where they integrate RFID directly in all processes: from source-tagging, via stock-taking and sales, to Electronic Article Surveillance (EAS). Our Store !D products support all these processes. Other customers focus on one problem, for example in-store product availability, and start with only stocktaking with our !D Hand handheld reader.

 

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