Nedap Retail RFID Solutions Improve Stock Accuracy and Product Availability

Articles | By Nedap Deutschland | 26 May 2014
The RFID rollout at Adler started in the fourth quarter of 2013 already and was completed in 2014. The RFID rollout at Adler started in the fourth quarter of 2013 already and was completed in 2014. Photo: Nedap

RFID in Retail

Ready to Sell at Any Time!

Innovative RFID solutions effectively banish a worst case scenario, many shop operators already got to know: A customer who does not find what he is looking for in the shop and a salesperson who does not know that the desired article is still available in the warehouse. Does every retailer actually have to make this experience? „No!“ is the answer of Nedap Retail, a company specialized on retail processes. Many RFID applications developed by Nedap Retail – for instance solutions applied at Adler Modemärkte or De Wolky Shop – demonstrate impressively that using the technology improves stock accuracy and product availability sustainably. The pressure on stationary retailers rises. A rapidly increasing number of online shopping portals bring tensions to the industry. In dialogue with „RFID im Blick“, Sabine Stockmann, Business Development Manager at Nedap explains, how easy it is to start using RFID technology for retail companies and which different options retailers can take advantage of to be „ready to sell“ at any time.

Stationary Retail Represents the Company Image

„In 2013, we received many requests for RFID solutions from the retail industry, especially from international conpanies which are already present in the German market or those planning to expand to Germany“, says Sabine Stockmann. „Despite the increase of sales in online retail, the stores remain important for retail companies. The shops are important to present the image and the brand. This, of course, also includes that sales are generated in the stores“, the expert for RFID solutions in fashion retail reports.

Retailers pay most of their attention to optimal availability of most-sold articles. Retailers which are ready to sell can stand up against the competition much better. „There is a high competitive pressure among retail companies in many German cities. More and more internationally successful brands position themselves in the German market. Setting up to compete for satisfied customers is therefore all the more important for German-based companies – also in technological terms, of course. We clearly notice the companies' willingness and can support them significantly with our solutions“, Sabine Stockmann explains the situation in the German market.

More Sales Thanks to RFID

Besides existing in a competitive environment, there are various retail-specific challenges – the different solutions, however, in almost every case have the aim at increasing sales. One basic requirement is that the articles are available in different sizes and colors in the shop. The company Nedap offers solutions for retail companies which, individually configured based on RFID technology, help to simplify inventory and improve product availability on the shop floor.

„In the fashion and footwear sector, many retailers already take advantage of the potential provided by RFID applications. With the solution 'Store !D', developed by Nedap, reliable inventory is possible. For retailers this opens the opportunity of reducing negative sales in the store and also in the online shop, drastically, Sabine Stockmann reports.

Starting RFID Without Big Effort

A retailer's decision on using RFID technology did not have to be a „yes or no“ decision - it rather took an intensive analysis of the existing technical store equipment to gain knowledge about which components could be upgraded, Sabine Stockmann says: „Our systems provide the option to upgrade compatible hardware in the store, gates for article security for instance, to make them RFID-capable. Thus, the investment costs are significantly reduced.“ An example of this upgrade option is the successful market introduction of an advanced Nedap FL45 pedestral, combined with an upgrade kit. „For retailers in the process of decision-making about whether they use an RFID system, upgradability is an important aspect. They invest into an RF antenna for article protection today and they can upgrade to RFID easily in the future“, Sabine Stockmann explains.

„Of course, Nedap also offers complete solutions. With a lot of complementary functions, we can implement systems for the corresponding requirements. This, for instance, also includes direction recognition of tagged goods in the transition area between back and front store“, the retail expert adds.

„Fast Stocktaking“ as First Step

Nedap developed the „RFID Experience“ concept to convince companies of the benefits provided by RFID technology in a practical manner without comprehensive test configurations. „Fast Stock Taking“, which is the fast and error-free inventory, is at the center of the concept. „With RFID experience, a retailer is in the test phase completely independent of an RFID-capable data base, since we provide him with a pre-configured test data base. The experience allows for recording the warehouse stock of a retailer twice a week with the RFID handheld '!D Hand' within a predefined period of twelve weeks in average. In succession to every „Fast Stock Taking“ we correct the recorded data. As a result, the retailer gets a detailed overview on his actual stock and the plus minus differences at the end of the experience“, describes Sabine Stockmann the Nedap RFID concept that gets retailers started.

Inventory of the warehouse stock at De Wolky Shop as part of an „RFID Experience“ using Nedap „!D Hand“ combined with the „Store !D App“.
Inventory of the warehouse stock at De Wolky Shop as part of an „RFID Experience“ using Nedap „!D Hand“ combined with the „Store !D App“.

The Dutch footwear retailer De Wolky Shop tested Nedap solutions in the framework of an RFID experience. During the Experience together with Nedap in two stores within a period of twelve weeks, the stock accuracy rose from 84 percent to 98 percent. Due to this success, De Wolky Shop decided to use the system in all Dutch and German stores.

The Next Step: RFID Source Tagging

De Wolky Shop has already introduced RFID technology. RFID labels are affixed in the store. Since it must be assumed that the technology will soon also be adapted by other retailers, the responsible authorities at Wolky BV decided for a phased introduction of a standard Wolky RFID label. In this way, every retailer selling Wolky products can take advantage of the RFID benefits right away. Wolky BV also makes internal use of RFID labels to use the benefits in terms of efficiency also in its own logistics chain. In the first instance, this measure only concerns a part of the product range. Starting with the Winter collection 2014, all Wolky articles are to be equipped with RFID labels.

Integrating Employees at an Early Stage Leads to Success

In addition to crucial success factors for the use of RFID, such as setting realistic goals at the beginning of a project and focussing on determined project phases, the integration of employees at an early stage was an important aspect in the project plan, says Sabine Stockmann: „If employees are not prepared for the technology with training courses right at the beginning of an RFID project, delays is the project schedule might arise. This is why we always train all employees of a company that is about to use Nedap RFID solutions in how to use Nedap hardware. As soon as all employees see with their own eyes, how easy it is to record up to 10,000 items per hour using an RFID handheld without any problems, the 'aha experience' is clearly sensible. Employees can test and experience themselves, how much RFID technology simplifies their daily business with regard to inventory and post-sorting.“

Last modified on Friday, 20 February 2015 00:53
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