Handleman Deploys RFID for Supply-Chain, Internal Benefits

In addition, Handleman is testing methods to help its employees merchandise and stock shelves at retail stores with handheld RFID interrogators. "We can take the same ASN we send to the retailer and send it to our field merchandising representatives," says Haram. "Now the Handleman rep gets a notice that something has been sent to a store, and when it is expected to arrive. The rep can go to the store and locate the shipment in the back room. The rep's RFID reader will beep as they get near a tagged carton, allowing the rep to take the carton and merchandise the products on the floor. With this technology, we have given our reps not just visibility but also velocity in performing this task. The back rooms of retailers can make it extremely challenging to locate boxes, particularly during the holiday season. This speeds up that process."

Handleman is not presently RFID-tagging items automatically at the full line speed of 180 to 200 tags per minute. Instead, the applicator affixes about 45 tags per minute. Haram says Handleman can quickly upgrade the capacity and be able to operate the lines at full speed. To ensure the right tags are applied to the correct cartons, and that the tags are working properly, Handleman integrated an error-checking capability into its operations.

"So if a UPC code does not match the associated RFID code, the carton or unit is diverted," Haram says. "If there's a bad RFID read, the carton or unit is kicked out. Or if the bar code has an issue, we kick it out."

An item or carton that has been kicked out is diverted to an audit station, where employees can check the content and correct any issues they identify. "It is critical to achieve an extremely high rate of accuracy," Haram explains. "Otherwise, you will be passing the problem on downstream, where it is more difficult and expensive to fix." Haram will be a keynote speaker at EPC Connection 2007, a conference and exhibition co-produced by EPCglobal North America and RFID Journal.

Handleman's RFID investment is designed not only to provide entertainment publishers and retailers a more nimble and transparent distribution service, but also to offer consumer goods companies a method of speeding up the time needed for a product to reach the retailer's shelf, as well as to improve the visibility of their goods in the supply chain. Haram says the technology may also help improve other processes as well.

"You know how sometimes people talk about technology and the killer application? With RFID, we think it is going to be about killer processes," Haram says. For example, he states, the time it takes to check inventory in a retail store can be drastically reduced using the technology. "It can take several days to inventory the music department in a large store. With RFID, you can go in with a handheld and get an exact inventory count in a few hours."