Kimberly-Clark Using RFID Analytics Service to Trim Out-of-Stocks

As EPC data becomes available from either the retailer or Kimberly-Clark, TrueDemand downloads it into its system via AS2 communication in XML format. "This data is typically being downloaded as soon as it is available," Peters says. "This allows us—on at least a daily basis—to run through the new RFID reads, along with the POS data and other data sources, and update our predictions on future out-of-stocks."

RFID data is combined with store inventory, POS data and other types of information to determine when an out-of-stock occurs at the shelf level, as well as to make predictions and suggest corrective actions. FRM's analyzed data is integrated directly into the Kimberly-Clark data management system behind a firewall. "We can run in either a hosted environment or behind the firewall model," Peters says. "Most major CPG manufacturers are not comfortable with their key retailer data residing outside their firewall."

Eric Peters, TrueDemand

Roth says he hopes to see the most dramatic benefit come at the time of product rollovers, when products are replaced by newer, enhanced versions. "Product rollovers can often cause disruptions of the supply chain," Roth notes. New products need to replace old ones on the shelf, often in different configurations, and this can lead to confusion in shelf restocking.

TrueDemand was launched three years ago as a forecasting company, Peters recalls, then began working to determine how RFID could change the way forecasting is performed. All too often, he explains, suppliers chase the wrong RFID data rather than forecast and resolve the costliest issues. "If we can supply better forecasting, we can fix problems before they occur."

This week, at RFID Journal LIVE! 2007, TrueDemand announced the release of a free service for those seeking to utilize RFID analytics in their business. The free software represents part of what TrueDemand has designed to assist RFID technology users, and will be available as a hosted service over the Internet. Users will be able to identify areas requiring improvement in their supply chain, Peters says, and take appropriate action utilizing the free software's trend analysis on RFID read rates, transit times, inventory levels, lost sales due to supply chain failures and root causes for out-of-stock by SKU, store and day.

Those interested in the free analysis system can visit www.tdemand.com/FreeRFIDAnalytics.html for more information.