LP Magazine

MAR-APR 2018

LP magazine publishes articles for loss prevention, asset protection, and retail professionals covering shrinkage, investigations, shoplifting, internal theft, fraud, technology, best practices, and career development.

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RFID AND RETAILING 42 MARCH–APRIL 2018 | LOSSPREVENTIONMEDIA.COM frequently viewed as part of a broader organizational change project focused on putting enabling technologies in place to drive transformational change to achieve future success. Recognising the Omni-channel Imperative. This technology was viewed as a key driver in developing the capacity to deliver a profitable omni-channel consumer experience—in effect the organizational "glue" that will hold together much of the architecture of twenty-first century retailing. Measures of Success Increase in Sales. Seven of the ten case studies shared data showing a sales improvement in the range of 1.5 to 5.5 percent. For SKUs identified as being out-of-stock by RFID systems, the growth was even higher. Based upon this data, the ten companies taking part in the study may have realized an RFID-driven sales uplift of between €1.4 and €5.2 billion. Improved Inventory Accuracy. Companies typically had an improvement from 65–75 percent to 93–99 percent. Stock Availability. Some of the companies taking part were now finding SKU availability in the high 90 percent region. Reduced Stock Holding. One-half of the case-study companies shared data on this measure, indicating a stock reduction of between 2 and 13 percent. Lower Stock Loss. One company suggested that their shrinkage losses had been reduced by 15 percent. Reduced Staff Costs. One company had measured a saving equivalent to 4 percent of their store staffing costs, which if rolled out across the case-study companies would be in the region of €378 million. Return on Investment. All ten companies were unequivocal in their assertion that the ROI had been achieved, and based upon their trial experiences, further rollout across the business was fully justified and embraced by the rest of the business, often with considerable enthusiasm and optimism. Learning Lessons Role of Senior Management. The role of the senior management team in both the initiation and subsequent delivery of the RFID project was seen as paramount—without their active support and recognition of the financial imperative, virtually none of the projects would have been initiated . Choosing a Business Leader. The RFID project leader was typically the person who had responsibility for on-shelf availability/stock integrity, regardless of where they were located within the business hierarchy. Engaging the Business. Respondents to this research clearly articulated the importance of working hard at getting cross-functional buy-in—RFID projects have long tentacles embracing most retail functions. Understanding Your Business Context. Many respondents considered this one of their biggest challenges—understanding how RFID will impact the business. Undertaking detailed process mapping and recognizing how products move through the supply chain was considered key, as was assessing the impact the physical environment might have on the functionality of the technology and how it would integrate (or not) with legacy systems. Challenges of Integration. By far and away the biggest headache these companies faced as they progressed on their RFID journey was the thorny issue of integration with legacy retail systems. A number felt they had not planned sufficiently well on how to resolve this issue and counseled future adopters not only to take integration seriously but also to think very early on in the process the extent to which they All ten companies were unequivocal in their assertion that the ROI had been achieved, and based upon their trial experiences, further rollout across the business was fully justified and embraced by the rest of the business, often with considerable enthusiasm and optimism. 15% STOCK LOSS REDUCED (01)95012345678903(21)00123 Size 12

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