Saudi Arabian Jeweler Puts a High Value on RFID

"The ROI was calculated based on the average shrinkage witnessed in the years before, and the investment made by Jade for the RFID system," Chikhani says. "Since its installation, there has been no shrinkage."

The system provides a further benefit, Chikhani adds: Jade can also produce online and printed reports showing managers the movement of goods within the store. For instance, a manager can see the length of time a certain piece of jewelry was viewed, and combine that information with sales data to better understand which jewelry is viewed, as well as whether those views translate into sales. The reports also help determine which jewelry sells best in which store. Jade may even use this information regarding the movement of goods to award performance bonuses to particular salespeople.

"Clients try on jewelry after they select it, and place it on a viewing tray," Chikhani says. "Asset Trail—Intelligent Store calculates the percentage of time the item is tried on by the client, versus the time it lays still on the tray. These two percentages, and the total time period of the client fitting, give an indication of the efforts exerted by a salesperson to sell an item. The figures can be compared with those from the sales of jewelry to existing customers. Management can then reward salespeople for putting in more effort to close a deal with a new customer."

According to Chikhani, the most difficult part of the application was training employees for the new procedures. "We have placed one of our engineers at the store for training," he says, "since everyone has to comply with the procedures."

Looking forward, Jade Jewelry plans to roll out the system at other stores within the next six months. What's more, Chikhani says, it is considering designing a mobile RFID system that it can utilize at trade fairs and other events outside the store.