An Empirical Study of Potential Uses of RFID In The Apparel Retail Supply Chain

Abstract:

Phase I of an empirical study of potential uses of radio frequency identification (RFID) in the apparel supply chain was conducted in the fall of 2010. This Phase of the research was designed to identify potential use cases for the use of RFID in an apparel supply chain and was funded by GS1 US and the American Apparel and Footwear Association (AAFA). The three-phase Supplier ROI study is commonly referred to as the Many-to-Many study. Phase II will involve the measurement of ROI for select use cases identified in Phase I. Phase III will study the effect of RFID on multiple suppliers simultaneously through an experiment. The use cases were solicited from a wide range of companies, in several different countries, in many different types of facilities, and thus reveal where the industry collectively believes the greatest RFID benefits reside. Over a period of several months, we collected more than 60 use cases. The findings of Phase I show that the potential benefits of item-level RFID in the apparel supply chain reach beyond the retailer and include apparel manufacturers.

RFID-Enabled Visibility and Retail Inventory Record Inaccuracy: Experiments in the Field

Abstract:

Accurate inventory records are key to effective store execution, affecting forecasting, ordering, and replenishment. Prior empirical research, however, shows that retailer inventory records are inherently inaccurate. Radio Frequency Identification RFID enables visibility into the movement of inventories in the supply chain. Using two different field experiments, the current research investigates the effectiveness of this visibility in reducing retail store inventory record inaccuracy IRI. Study 1 used an interrupted time series design and involved daily physical counts of all products in one category in 13 stores 8 treatment and 5 control of a major global retailer over 23 weeks. Study 2, which used an untreated control group design with pre-test and post-test, the number of categories was expanded to five and the number of stores to 62 31 treatment and 31 control stores. The results from both studies provide guidance for researchers and practitioners for the deployment of RFID in the retail store by 1 demonstrating that case-level tagging can be effective in reducing IRI with the ecological validity provided by a field experiment, and 2 providing the key insight that the technology is most effective for product categories characterized by known determinants of IRI.

Item-Level RFID for Apparel/Footwear: The JC Penney RFID Initiative

Abstract:

It has been proven that item-level RFID can improve many in-store processes for retailers. In particular, the business case for RFID for retailers looks promising. Previous studies have shown the benefits of RFID at the pallet and case level, such as reducing out of stocks and improving inventory count accuracy. Therefore, it seems logical that item-level RFID would provide even more benefits. In this study, we examine the use of item-level RFID at a major apparel and home retailer, JCPenney. Specifically, the use cases of inventory accuracy and inventory management using RFID replenishment reports are investigated, with incidental attention to cycle counting. This pilot’s results support previous research, demonstrating the tendency for inventory accuracy to diminish over time, as well as the potential for improvement in inventory accuracy due to RFID. Improved inventory accuracy leads to fewer out of stocks, less safety stock, and better ordering and forecasting, among others.

Item-Level RFID for Apparel: The Bloomingdale’s RFID Initiative

Abstract:

Item-level RFID has the potential to improve many in-store processes for retailers. In particular, the business case for RFID for apparel retailers looks promising. Previous studies have shown the benefits of RFID at the pallet and case level, such as reducing out of stocks and improving inventory count accuracy. It seems logical, therefore, that item-level RFID would provide even more benefits. In this study, we examine the use of item-level RFID at a major apparel retailer, Bloomingdale”s. Specifically, the use cases of inventory accuracy and out of stocks are investigated, with incidental attention to cycle counting and loss prevention. Results clearly indicate the tendency for inventory accuracy to diminish over time, as well as the potential for improvement in inventory accuracy due to RFID. Improved inventory accuracy leads to fewer out of stocks, less safety stock, and better ordering and forecasting, among others. The ability to quickly and accurately conduct cycle counting facilitated by RFID, rather than doing large scale inventories once or twice per year, offers the advantage of keeping inventory accuracy high. Finally, for loss prevention, RFID provides the advantage of knowing exactly what was stolen, when it was stolen, and from where it was stolen. In addition to the insights this provides to improve loss prevention methods, knowing exactly what was stolen allows the retailer to adjust inventory counts accordingly and order more product, as needed.

Item-Level RFID for Apparel: The Dillard’s RFID Initiative

Abstract:

Item-level RFID has the potential to improve many in-store processes for retailers. In particular, the business case for RFID for apparel retailers looks promising. Previous studies have shown the benefits of RFID at the pallet and case level, such as reducing out of stocks and improving inventory accuracy. It seems logical, therefore, that item-level RFID would provide even more benefits. In this study, we examine the use of item-level RFID at a major apparel retailer, Dillard’s, Inc. Specifically, the use cases of inventory accuracy, out of stocks, cycle counting, and loss prevention are investigated. Results clearly indicate the improvement in inventory accuracy due to RFID. Improved inventory accuracy leads to fewer out of stocks, less safety stock, and better ordering and forecasting, among others. The ability to quickly and accurately conduct cycle counting facilitated by RFID, rather than doing large scale inventories once or twice per year, offers the advantage of keeping inventory accuracy high. Finally, for loss prevention, RFID provides the advantage of knowing exactly what was stolen, when it was stolen, and from where it was stolen. In addition to the insights this provides to improve loss prevention methods, knowing exactly what was stolen allows the retailer to adjust inventory counts accordingly and order more product, as needed.

RFID As Electronic Article Surveillance EAS: Feasibility Assessment

Abstract:

The purpose of this study with participation from the Council of Supply Chain Management Professionals CSCMP, the Voluntary Interindustry Commerce Solutions VICS Association, Dillard’s, and Procter & Gamble, was to determine the feasibility of Class 1 Generation 2 UHF RFID as a potential sales floor level theft deterrent system. To fully comprehend this feasibility, the technical performance capabilities of standard UHF RFID tags and readers were compared to two common existing electronic article surveillance EAS technologies-acousto-magnetic AM and radio frequency electronic article surveillance RF-EAS-at an exit door portal to provide a reference. A variety of baseline tests were performed on all the technologies, and then a series of shoplifting scenarios were investigated. The baseline tests were designed to provide some controlled feedback on the general functionality of the respective technologies; the shoplifting scenarios provided insight into the technologies’ uses in a realistic, albeit simulated, environment but were not designed to necessarily defeat the technologies. Overall, RFID performed satisfactorily in the baseline and shoplifting scenarios-enough to warrant further investigation of RFID as a theft deterrent system.

The Promise of RFID-based Sensors in the Perishables Supply Chain

Abstract:

The success of today’s highly volatile perishables supply chains depends on the level and the timeliness of product visibility. Visibility should provide answers to the questions of `where is my product’ and `what is the condition of my product’. The foundation for such visibility should be an effective and efficient information system enhanced with RFID technology. Already, several companies have begun experimenting with RFID for perishables see sidebar: Experimenting with RFID for Perishables. In this paper, we specifically explore the use of RFID-enabled sensors and examine some sample applications of these sensors in monitoring the condition of perishable products in the supply chain.

The Politics of RFID – Implementation

Abstract:

The success of today’s highly volatile perishables supply chains depends on the level and the timeliness of product visibility. Visibility should provide answers to the questions of `where is my product’ and `what is the condition of my product’. The foundation for such visibility should be an effective and efficient information system enhanced with RFID technology. Already, several companies have begun experimenting with RFID for perishables see sidebar: Experimenting with RFID for Perishables. In this paper, we specifically explore the use of RFID-enabled sensors and examine some sample applications of these sensors in monitoring the condition of perishable products in the supply chain.

The Politics of RFID – The Issues

Abstract:

RFID technology is beginning to enter the political arena. In 2006, seventeen states considered RFID-related legislation, and the European Union created a commission to make recommendations on possible future regulation. As with all new technologies that hold widespread implications for the way we do business and live our lives, it will be perceived by some as a helpful addition to the toolbox of social technologies that permit us to become more efficient and by others as a threat to values and entitlements that are dearly held. And as with all such issues that touch intimately on our lives, it will end up in the political arena. The purpose of this paper is not focused on the technology of RFID, but the political issues and their ramifications.

RFID Item-Level Tagging for Apparel/Footwear: Feasibility Study

Abstract:

This document describes a feasibility study conducted by the University of Arkansas’ RFID Research Center with participation from the Council of Supply Chain Management Professionals CSCMP, the Voluntary Interindustry Commerce Solutions VICS Association, Dillard’s, and Procter & Gamble, wherein passive Ultra High Frequency UHF Gen 2 RFID tags were applied to a variety of clothing and footwear items, generally offered for retail in the apparel/footwear industry, and tested for read rate success using various test scenarios. These test scenarios were compiled with a view to emulate, as practically as possible in a laboratory environment, normal store operations within the apparel/footwear industry. Overall, the purpose of the initial phase of this project was to explore the feasibility of RFID for apparel/footwear item level tagging. The project followed the general steps of: 1 identify the use cases where RFID may offer the most benefit; and 2 set up prototypes in a lab environment to investigate the feasibility of RFID for each use case. The major use cases investigated included product lifecycle management, inventory management, loss prevention, dressing room management, and point of sale.