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RFID im Blick

Adler decides to roll out RFID comprehensively

Use Cases | By PR RFID im Blick | 13 June 2013
Adler decides to roll out RFID comprehensively Photo: Adler Modemärkte

Positive pilot project experience encourages the fashion house to do the next steps

For a number of years, the textile trader Adler Modemärkte has been dealing with the use of RFID technology to increase inventory accurary. After a first rollout pilot project in a total of seven fashion stores which turned out to be very satisfactory to those responsible, the company now plans the final step for a comprehensive rollout to all currently 170 locations in the distribution network. According to the planning arount 30 million items of the whole product rage per year are supposed to be equipped with RFID labels in the final stage.

RFID firmly anchored in the company

During the press conference for the company's balance sheet presentation for the year 2012 on March 21st, Lothat Schäfer, CEO at Adler Modemärkte, explained that results and experiences from the pilot project in seven fashion houses had shown that RFID generated a clear efficiency gain and opened up new turnover potentials. Thus the company opted for a comprehensive rollout.

Rollout completion planned for 2014

After a transitional period to arrange and design hardware acquisition as well as the whole logistics for the planned rollout, Lothar Schäfer anticipates that the setup of antishoplifting gates at entries and exits, acquisition of mobile handhelds for inventory management, setup of gates at the transition between point of sale and warehouse as well as supply with printers and labels of all currently 170 locations can start in late autumn 2013 and that the whole system integration will be completed by the end of 2014. All partners that worked with Adler in the pilot phase are goint to accompany the rollout for the most part. There had only been minor adaptions regarding cooperation, said the Adler director.

ROI expected in 2015

The company's long-term planning assumes that a comprehensive Rollout will lead to a return on investment by the end of 2015. Due to the very positive findings from the pilot project at five German and two Luxembourg locations which had proven that the RFID solution did not only result in a highly improved inventory control, the avoidance of out of stock situations as well as the opportunity of permanent stock inventory, but that it also opens up turnover potentials, Adler Modemärkte currently even expected to achieve an ROI even before 2015, says CEO Schäfer during the press conference for the company's balance sheet presentation. Although there were no detailed statements the costs of the project and the rollout now beginning, the business report for the last year published in March contains the statement claiming that investments in immaterial assets had amounted 3.4 million Euros in 2012 which according to the report had been spend mostly on the RFID project.

Optimizing processes and generating cost advantages

In order to enlarge the shop network, Adler Modemärkte plans to open ten to 20 new shops each year. According to the business report RFID is part of the expansion strategy as the company sees this as a way to realize cost benefits by means of optimized processes for goods control and security.

The article was published in the April issue 2013 of the magazine „RFID im Blick“.

Listen to Roland Leitz, divisional director IT/Orga at Adler Modemärkte at the RFID Conference 2013 on September 10, 2013 in Dusseldorf. In his lecture he talks about the RFID-Rollout at Adler Modemärkte.

Last modified on Wednesday, 21 October 2015 17:51