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Item Level RFID Initiative Focuses on Supplier Benefits
Longo explained that Macy's deployed the technology at its Bloomingdale's store in Manhattan's SoHo section. "Inventory accuracy went from 70 to 75 percent to 95 to 99 percent," he said. "That's practically stunning. We see that as the most important benefit."
In 2011, Macy's and its Bloomingdale's unit plan to expand their use of RFID to additional stores, in order to learn more about how they can utilize the technology to increase efficiencies and better serve customers.
"A year ago, we used to talk about whether to use RFID or not," Longo said. "The debate is over. Our position is that the technology is here, and it is time. RFID is no longer a jazzy technology being tested by academics and consultants. It's not acceptable to have 30 percent inventory inaccuracy."
During the meeting, Justin Patton, the director of the RFID Research Center, briefed members on the Arkansas Radio Compliance (ARC) Center, recently established to measure how well passive ultrahigh-frequency (UHF) EPC Gen 2 RFID inlays can be read when applied on or around different materials in various environments for item-level tracking purposes (see Arkansas Radio Compliance Center Aims to Avert Clashing Requirements). Based on the results of those tests, as well as a retailer's particular use case, the center will provide a list of acceptable inlays for a specific consumer product and use case to businesses that supply goods to that retailer.
David Cromhout, the RFID Research Center's lab director, then briefed members on the first phase of its research into the benefits that suppliers can achieve using RFID. The center, he told attendees, had identified dozens of potential applications for the technology in the supply chain. These included automating inbound and outbound shipping processes, managing country-of-origin data, tracking returns, reducing internal shrinkage and more (see University of Arkansas Study Finds 60 Ways to Use RFID in Apparel Supply Chain).
The next phase of the research will involve working with select suppliers to narrow down the applications within the supply chain to those that will provide the biggest bang for the buck. Phase three will focus on examining the benefits that suppliers can achieve when multiple suppliers ship tagged products to many retailers.
more Retail articles
In 2011, Macy's and its Bloomingdale's unit plan to expand their use of RFID to additional stores, in order to learn more about how they can utilize the technology to increase efficiencies and better serve customers.
"A year ago, we used to talk about whether to use RFID or not," Longo said. "The debate is over. Our position is that the technology is here, and it is time. RFID is no longer a jazzy technology being tested by academics and consultants. It's not acceptable to have 30 percent inventory inaccuracy."
During the meeting, Justin Patton, the director of the RFID Research Center, briefed members on the Arkansas Radio Compliance (ARC) Center, recently established to measure how well passive ultrahigh-frequency (UHF) EPC Gen 2 RFID inlays can be read when applied on or around different materials in various environments for item-level tracking purposes (see Arkansas Radio Compliance Center Aims to Avert Clashing Requirements). Based on the results of those tests, as well as a retailer's particular use case, the center will provide a list of acceptable inlays for a specific consumer product and use case to businesses that supply goods to that retailer.
The next phase of the research will involve working with select suppliers to narrow down the applications within the supply chain to those that will provide the biggest bang for the buck. Phase three will focus on examining the benefits that suppliers can achieve when multiple suppliers ship tagged products to many retailers.
