RFID ARTICLE Product: Nordic ID Merlin UHF RFID Cross Dipole
GERRY WEBER
FASHION RETAIL RFID PAYS FOR ITSELF IN 24 MONTHS
RFID in retail is nothing new. But in fashion retailing, where stock-outs can shred profit margins, Radio Frequency Identification is proving to be an advantage of incredible value, and for more than just keeping the right inventory on shelves. In the U.S. Bloomingdales is achieving impressive inventory accuracy rates of 95%, but in Europe high-end fashion retailer Gerry Weber is going one better with 99% values. This is thanks to two things: complete RFID integration throughout the supply chain, and store-wide inventories performed twice weekly. The efficiency gains are so great, in fact, that Gerry Weber’s RFID implementation will pay for itself in just 24 months, then start helping the retail chain to increase profits.
4 • Nordic IDea
Text: Carl Michener / ID BBN Images: Nordic ID & Gerry Weber & GS1 US
The Germany-based company recently became the first fashion retailer to realize complete RFID supply chain integration. This is a move that Christian von Grone, Gerry Weber’s CIO, says is saving the company money on several fronts. “Each garment care label now carries an RFID tag and electronic product code (EPC), at a cost of just €0.08 more than conventional care labels,” he says. “For that small price we’re experiencing zero shrinkage in transport, less than 1 percent stock-out situations and we’ve reduced theft while saving money on security.” The RFID component of care labels is also designed to degrade after washing, quickly becoming unreadable and alleviating any consumer privacy concerns. RFID NOW FEASIBLE FOR ALL RETAILERS Art Smith, President and CEO of GS1 Canada, an international supply chain standards organization, and advisor to the inter-industry Item-Level RFID Initiative in the United States, thinks that the retail sector stands on the brink of a key technology shift. He sees the use of the global EPC standard for RFID as key to making this process more effective: “As the retail sector moves towards real-time inventory views, standardized RFID technology will enable efficiencies for manufacturers, suppliers, retailers and buyers alike.”