Levi's Tagged More than 50 Million Items with RFID Labels

Process Requirements

The challenge that many stores face: How can customers always find the exact item they are looking for? Ideally, the customer will find the desired model in the desired size on the designated shelf. The frequent store reality: Either the model they are looking for is in a different location or has been sold out without a replenishment process.

Objective

• Increase in inventory accuracy
• Reduction in inventory times
• Increase in sales

Solution

Levi's implements 100% source tagging of all articles. The RFID tags are not (yet) used for the supply chain processes down to the individual stores. In production, all articles are marked with RFID tags. The separation of goods with and without RFID chips in the process is inefficient.

An inventory of the entire shop floor, with defined routes, using an RFID handheld device takes a maximum of 20 minutes. A short-term and comparable duration and accuracy of data collection is guaranteed. The achieved accuracy of the inventories is on average over 98 percent in the store. Collected inventory data is used for automated floor replenishment reports. These reports immediately trigger the replenishment of missing articles from the backstore.

Customer satisfaction is increased and turnover is boosted. Stores in which the RFID application is already fully operational record an average increase in turnover of five percent.

Technology Partner

• Zebra Technologies

Advantages

• Sales increase of 5 percent
• Stock accuracy increased to 98 percent
• Inventory time reduced to 20 minutes

Outlook

• Use of virtual shielding

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