Two retail pilot projects are profiled by technology market research and strategy consulting firm VDC Research Group in a recent whitepaper sponsored by Sensormatic Retail Solutions titled “Chaos in the Retail Cosmos.” These profiles reveal some of the benefits associated with item level intelligence that can be achieved by implementing RFID on the retail shop floor: increased supply chain optimization, incremental revenue generation and improved customer satisfaction.
VDC cited the some of the benefits associated with item level intelligence solutions from a pilot project undertaken by ADT using Sensormatic item level intelligence solutions with a leading book retailer:
§ Increased inventory accuracy from 65 percent to 97.5 percent and expedited physical inventory audit process to less than four hours
§ Replenished close to 75 percent of their inventory with semi-automated inventory replenishment system
§ Enhanced store revenues by almost 15 percent compared to stores lacking the technology, thanks to an immediate order capability enabled by item-level management
Similarly, VDC reported results from a similar project undertaken by a leading European department store:
§ Decreased receiving time of all incoming shipments from one hour to just eight minutes – an 87 percent improvement
§ Reduced physical inventory audits from 90 minutes to 20 minutes – a 67 percent improvement
§ Updated information on shelf inventory levels every 10 minutes drastically reduced retailer’s potential for stock-outs
According to Tom Wimmer, Director of AutoID and Transaction Automation at VDC Research Group, “Out-of-stocks, misplaced merchandise, shrink and vendor fraud are ongoing challenges for retailers that can adversely impact sales and profitability. Given the current economic outlook, retailers need to consider investing in a new breed of inventory management solutions that are capable of addressing these challenges head-on, while enhancing the customer’s shopping experience and creating new opportunities to capture incremental revenue.”
The October 2008 acquisition by Sensormatic Retail Solutions of VUE Technology, a leading provider of item-level RFID software and infrastructure solutions, strengthened the Sensormatic portfolio of loss prevention solutions and other sensor technologies. ADT, the primary delivery channel for the Sensormatic portfolio, now offers retailers complete enterprise solutions using advanced multisensory technologies in a multilayered approach to controlling shrink and optimizing operations.
This approach can help retailers worldwide accurately track goods coming from factories through distribution centers and all the way into their stores. Once on store shelves, goods can be tracked while in stock, through the point-of-sale and out the store exit to avoid out-of-stocks and maximize store profitability. To lower deployment risks and costs, ADT supports its Sensormatic solutions portfolio with comprehensive services, including consultation, system design, engineering, implementation, full post-deployment maintenance, remote diagnostics and service. If required, ADT can provide a hosted or managed RFID solution, as well.
“In today’s economic environment retailers need to consider investing in inventory management solutions for the retail selling floor that can deliver greater product availability, more accurate replenishments and more effective inventory cycle counting, “ said Jeff Bean, vice president, Retail Sales, ADT. “ADT’s comprehensive Sensormatic item level intelligence platform combined with ADT’s global reach and service delivery capabilities are uniquely positioned to help retailers worldwide scale and execute real-time inventory visibility solutions that can help them optimize profitability, cut costs and better retain customers.”
About ADT Security Services
ADT Security Services, a unit of Tyco International, is the largest provider of electronic security services to more than seven million commercial, government and residential customers worldwide. ADT's total security solutions include intrusion, fire protection, closed circuit television, access control, critical condition monitoring, electronic article surveillance, radio frequency identification (RFID) and integrated systems. ADT's web site address is http://www.adt.com.
About the Sensormatic Retail Solutions Portfolio
The industry-leading Sensormatic Retail Solutions portfolio offers vital loss prevention and operational improvement technologies and solutions. Backed by more than 1,500 patents, the Sensormatic solutions portfolio is sold through ADT and Tyco partners around the world. From the front of the store through the entire retail supply chain, Sensormatic solutions help keep losses lower – and profits higher. Today, over 80 percent of world's top 200 retailers that use EAS rely on Sensormatic solutions, which include EAS, source-tagging, data analytics and in-store, item-level intelligence applications. Sensormatic forward-thinking solutions also include dual EAS-RFID technology that provides item-level security and visibility in an ever changing retail environment. For more information, please visit http://www.sensormatic.com.
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