RFID smart cards 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, 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.
The German 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.contactless cards
|
