RFID Implemented from Source to Store!
Polish retailer LPP, with apparel brands Reserved, Cropp, House, Mohito and Sinsay, has partnered with Checkpoint Systems to implement RFID technology in more than 450 stores, with another 900 in the pipeline.
Since then, sales have increased by three percent, inventory accuracy and shelf availability have increased to 99 percent, and checkout time has been reduced by an average of 70 percent. Even during the pandemic-related store closures, the benefits of Checkpoint Systems' RFID solutions were evident in the transition to online-only sales.
LPP has seen strong growth over the past two decades and was therefore looking for a partner who could implement RFID technology on a large scale - from source to distribution centers to store. The goal was to improve warehouse management and inventory accuracy, while making store operations more efficient and reducing shrink.
Checkpoint Systems, with whom LPP was already working in the area of article surveillance, was able to do just that. To do this, the solution provider developed a special dual RF and RFID tag that blended harmoniously with the aesthetics and overall design of LPP's stores without causing delays to the tight overall schedule. With this dual tag designed for LPP, all garments were marked at source (in collaboration with LPP's suppliers), while in parallel two distribution centers were equipped with 30 RFID tunnels capable of reading and encoding these tags in under a year.
Cashiering Process Significantly Accelerated
Although global implementation is still underway, it is already clear that the original goals of the project have been achieved and exceeded. In stores already equipped with RFID technology, shelf availability is 99 percent. This is an increase of approximately 13 percent compared to the start of the project. Inventory accuracy is also 99 percent. The duration of the checkout process has been reduced by an average of 70 percent. As soon as the security tags, which are equipped with RFID tags, are removed, the product information and the price are transferred to the checkout - eliminating the need to scan the barcodes separately.
Customers in the store also benefit from this time saving. In addition, LPP has seen a three percent increase in sales since implementing the technology. By analyzing top sellers, Checkpoint Systems' technology also makes it possible to tailor inventory more precisely to the needs of individual stores. Sustainability was also important to LPP: all Checkpoint Systems hard tags are reusable within the supply chain.
Smooth Transition to Online-Only Trading
While the implementation process was in full swing, the Covid 19 pandemic brought brick-and-mortar retail to a standstill. For LPP, the transition to online-only retail proved straightforward thanks to RFID technology. With improved distribution center operations and 99 percent inventory accuracy, the transition to online-only sales was comparatively smooth.
LPP is expanding its use of RFID solutions from Checkpoint Systems. Plans include the expansion of omnichannel strategies and intelligent fitting rooms.
What is RFID and how does it Benefit Retailers?
RFID uses radio waves to automatically identify and track tags attached to objects. When triggered by a nearby reader, the tag sends electronically stored information - such as an inventory number - back to the reader. Similar to a barcode, each label has a unique fingerprint of digital data. Unlike a barcode, however, an RFID tag does not have to be in direct line-of-sight to be recognized by the reader.
First and foremost, RFID technology enables easier and more accurate inventory counting, which means retailers always have up-to-date inventory visibility and item-level traceability across their stores, warehouses and supply chains. This is especially important for omnichannel retailing, as retailers can view and track their entire inventory across all channels in real time. The speed with which RFID can accurately track inventory and location also significantly reduces labor costs and time by eliminating manual inventory counts. The ability to read hundreds of tags simultaneously makes RFID not only more accurate and reliable, but more importantly, much faster than alternative methods.