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Avery Dennison

Why Avery Dennison for Today’s RFID - Increased Inventory Accuracy Drives Profitability

Artikel | von Avery Dennison RFID | 11. November 2015
“At Avery Dennison RBIS, it’s our vision to provide leading apparel brands and retailers with intelligent, creative, and sustainable solutions that help elevate their brands and accelerate their performance throughout the global retail supply chain.” “At Avery Dennison RBIS, it’s our vision to provide leading apparel brands and retailers with intelligent, creative, and sustainable solutions that help elevate their brands and accelerate their performance throughout the global retail supply chain.” BILD: Avery Dennison

Apparel Industry

Early RFID Adopters Have Learned the Lesson: The Right RFID Solution Leads to Faster Inventory Turnover, Higher Margins and Increased Profitability

“Today, there is no question whether RFID should be used in the apparel industry. Based on the experience of early RFID adopters, every retailer can benefit from the right RFID solution optimized for their operation,” says Francisco Melo, Vice President of Global RFID for Avery Dennison. But how can a retailer evaluate which solutions will actually optimize existing processes? And does investment in RFID implementation really pay off, and if so, when? In an interview with “RFID im Blick,” Melo answers these and other questions as he makes a case for today’s RFID.

Francisco Melo, Vice President Global RFID, Avery Dennison RBIS, in an interview with “RFID im Blick”

What Early Adopters Have Learned

“The benefits of RFID technology for the apparel industry are clear,” notes Melo. “A company like Marks & Spencer would not have stayed with RFID and expanded its use to general merchandise tagging as well as all clothing – if the investment did not pay off.”

Independent organizations confirm this assessment. According to studies, the average stocktaking accuracy for clothing, shoes and accessories at the single item level without RFID is 65 percent; with RFID, inventory accuracy is increased up to 99 percent. More importantly, according to Melo, the experience of early RFID adopters working with the Retail and Branding Information Solutions (RBIS) division of Avery Dennison – like Marks & Spencer and Gerry Weber have proven the benefits. Customers who implement an RFID solution generally see an improvement in inventory turnover and an increase in profit margins by up to ten percent.

Avery Dennison estimates that more than half of all global apparel companies are currently evaluating, testing, or implementing RFID solutions. Of these companies, more than 100 are assessing, testing or piloting RFID solutions from RBIS.

Francisco MeloFrancisco Melo “Based on the experience gained from more than 100 RFID integrations for apparel companies worldwide, Avery Dennison has developed benchmarks and methodologies to help retailers optimize RFID for their specific operation.”

Why Avery Dennison for Today’s RFID

Francisco Melo believes there are three reasons why Avery Dennison is the leading supplier of apparel RFID. “First, Avery Dennison is a global company, with 115 locations in 50 countries on six continents. This is essential to work with apparel companies that operate worldwide. Second, Avery Dennison holds more than 800 patents and patent applications in the field of RFID technology – and we are working on developing new RFID technologies for tomorrow’s applications in our design and development centers. Finally, we have a proven five-step RFID adoption process and more RFID implementations than any other global supplier.”

RFID From Avery Dennison RBIS: Customized Customer Solutions

Based on experience gained from more than 100 RFID integrations in the apparel industry, Avery Dennison has developed a five-step process leading to full RFID realization for apparel retailers. The benchmarks and methodologies created by the company support retailers while they are evaluating the decision to embrace RFID. “Our five step plan starts with the creation of a unique, RFID business case for each retailer,” said Melo. “After designing a customer-specific solution, the subsequent pilot phase leads first to a limited rollout that proves the business case. Then, depending on the strategic goals and requirements of the apparel company, full RFID implementation is the final step. This typically includes source tagging or expansion to all product categories.”

Benefits vs. Cost

Melo knows how concerned retailers are with the cost of RFID implementation. “The question should not be how much RFID implementation costs, but how significant the return on investment will be,” stated Melo. On average, a typical RFID ROI can be expected after about one year; however, this varies depending on the application and factors such as average store size, existing technological infrastructure, average item selling price, and the degree of RFID complexity undertaken.

Melo believes deciding for or against RFID based solely on whether there will be an achievable short-term ROI can be short sighted. For him, the final argument in favor of RFID lies not in cost savings, but in growing sales and reduced markdowns. “RFID results in an accurate, transparent inventory. This helps the retailer have the desired goods in store when the customer wants them,” said Melo. “The more items a retailer can sell for full price, the fewer the markdowns and the higher the profit margins. Plus, employees can use the time they’re not counting stock to serve customers. The way I see it, RFID is a win-win for everyone. With RFID, companies get increased inventory turnover, customers get what they’re looking for, and employees get greater job satisfaction with more time devoted to customer contact.”

Vertically integrated retailers like Marks & Spencer and Gerry Weber have already demonstrated the value of RFID across the supply chain. These companies control everything from production to the point of sale, and can therefore optimize RFID throughout their value chain. But what about multi-brand retailers? Does RFID really make sense for them? Melo believes it does. “We think the real secret for RFID value for multi-brand retailers lies with their brand manufacturers. If enough retailers insist on RFID source tagging, the brand manufacturers will comply and as a consequence will experience a positive impact on their operational efficiency. Then multi-brand retailers, and brand manufacturers, will realize the benefits of RFID for their processes and their inventory accuracy.”

Today’s RFID: Opening the Door to Omnichannel

Where is RFID headed? Wherever retail takes it, and right now, that means omnichannel, a multichannel approach to sales that provides the customer with a seamless shopping experience, whether online, from a desktop or mobile device, by telephone, or in a store. According to Melo, RFID is a key facilitator of omnichannel retailing. “We believe RFID is critical to the future of omnichannel retailing. More than any other technology, it delivers the inventory accuracy and visibility needed by retailers to confidently pick to the last unit,” he said. “With RFID, retailers can make the intelligent and informed business decisions needed to connect the physical with the digital shopping world and better serve their customers.”

Letzte Änderung am Mittwoch, 11 November 2015 09:44
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