RFID Item-Level tagging for apparel/footwear: Feasibility Study
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Phase I: RFID Item-Level Tagging For Apparel/Footwear: Feasibility Study Executive Summary
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.
Phase II: RFID As Electronic Article Surveillance (EAS): Feasibility Assessment Executive Summary
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.
Phase III: Item-Level RFID for Apparel: The Dillard’s RFID Initiative
In this study, we examine the use of item-level RFID at Dillard’s, Inc., a major apparel retailer. 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, among other things, fewer out of stocks, less safety stock, and better ordering and forecasting. The ability to quickly and accurately conduct cycle counting facilitated by RFID—rather than doing large-scale inventories once or twice a 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 enhance loss prevention methods, knowing exactly what was stolen allows the retailer to adjust inventory counts accordingly and order more product as needed.
Phase IV: Item-Level RFID for Apparel: The Bloomingdale’s RFID Initiative
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. This study also provides insight on improving loss prevention methods.
Phase V: Item-Level RFID for Apparel:The JCPenney RFID Initiative
The JCPenney RFID pilot focuses on improvements RFID offers in the areas of inventory management and accuracy. The purpose and intention behind the pilot implementation was to evaluate how the improvements that RFID can help attain are changing the way retailers approach the introduction of RFID into their existing businesses. Retailers already know that RFID works. What needs to be examined now is how this technology can be embedded into an existing business in the most efficient and non-disruptive manner. The RFID pilot at JCPenney is an example of how retailers are introducing RFID into their existing business.
