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Brazilian Retailer Lez a Lez Improves Inventory-Counting Process

The store, located in Asuncion, Paraguay, adopted RFID technology for merchandise receiving, inventory management and sales.
By Edson Perin

Following the in-store RFID deployment, the company reports that it has reduced its process time as goods are moved from the distribution center to the store. In addition, it has eliminated divergent deliveries, increased accuracy and shortened the amount of time required to complete inventory counts. The firm has gained control of stock items, and can now track parts throughout all processes.

"We will now expand RFID to six other stores in Paraguay and focus on interacting with customers, taking control of the goods that enter the dressing room," Martinez states. "In this way, with RFID, we can suggest combinations of parts that are in the field of sales to customers, providing a new buying and service experience."

The proprietary enterprise resource planning (ERP) system from Lez to Lez is integrated with iTag's RFID middleware, which tracks all regulatory issues in Paraguay. iTag also offers web service for inventory and stock control. The database operates remotely via cloud computing.

Here's how the RFID process works: Tagged goods leave the DC and arrive at the store, where a count is performed via an RFID reader. The same reader will be used throughout the day to for the purpose of store audits, to monitor for breakage and to make sure products are shipped on a FIFO basis. When necessary, partial or total inventory counts of the store can be carried out.

The movement of stock is managed via the RFID portal, which is always activated during the store's hours of operation. The sales process is carried out by an RFID reader that remains in the box.

By comparing the RFID results with the previous bar-code processes, the company has improved its goods-receiving process and has automated its manual inventory counts. The prior process was quite error-prone, the company notes, since some merchandise was overlooked and not counted.

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