Inventory Management in Footwear Retail with RFID
Founded in 1973, the Deckers Outdoor Corporation, also known as “Deckers Brands”, is a US-American retail company that designs, produces and distributes footwear, apparel and accessories. Company headquarters are located in Goleta, California. Deckers Brands employs over 3,600 staff worldwide.
Part of the family brand are the labels UGG Australia, Teva, Sanuk, Hoka Hoka One and Koolaburra. The product portfolio includes luxury fashion items, sportswear, casual wear, and footwear. In production, the company focuses on high levels of manufacturing quality and depth as well as the ethical sourcing of resources in the supply chain. Distribution and sales of brand products are carried out in 138 stores worldwide as well as via e-commerce in a company-owned online store.
The goal of the company is the utilization of an RFID inventory management system in order to reduce the workload for inventory counts, increase inventory accuracy, reduce safety stock and improve stock availability.
(Image Source: Deckers Outdoor Corporation, Checkpoint Systems)
Process Requirements
Deckers Brands required a solution to increase inventory management efficiency. This includes the identification and localization of inventory in storage, on the sales floor and when receiving shipments in stores, as well as obtaining a digital overview of available inventory. The aim is to limit the amount of time spent to locate products to only a few minutes in order to free up employee time for customer interaction.
Objectives of Deckers Brands
- To reduce the time spent for inventory counts and to locate products
- To increase inventory accuracy in stores
- To improve customer services and customer satisfaction
- To increase stock availability in the storage area and on the sales floor
- To avoid overstocking and to reduce safety stock
The Deckers Brands Solution
The Deckers Outdoor Corporation equips footwear with RFID tags and utilizes an RFID inventory management system as well as RFID handheld readers in stores. The tag is applied to the soles of footwear during production.
The RFID tag of every shoe contains a unique ID. Employees use RFID handheld readers to read the tags when receiving shipments and for inventory counting in the store. The product information on the RFID chip is read and transferred into the inventory management system.
The system displays whether certain footwear is located in the storage area or on the sales floor. Specific product searches are possible by entering the product number into the RFID handheld. The device provides audio-feedback when in close proximity of the desired product. A rapid restocking of products from the storage area to the sales floor is enabled and searching out desired items for customers is possible.
Hardware & Software
- Checkpoint Systems – RFID Tags
- RFID Handheld Readers
Advantages
- Reduction of time spent for inventory counts and to locate products
- Increased inventory accuracy in stores
- Expanded customer services and improved customer satisfaction
- Increased stock availability in the storage area and on the sales floor
- Overstocking is avoided and safety stock reduced
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Technologies
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