Checkpoint Partners With Mojix to Offer Passive RTLS in Stores

The system, using Checkpoint software and Mojix's OmniSense UHF reader and antenna array, is being tested by a high-value apparel retailer to make inventory tracking for replenishment and business analytics "hands-free."
Published: April 16, 2014

In response to retailer customers seeking real-time RFID solutions to free employees from having to conduct audits via handheld readers, Checkpoint Systems is partnering with passive real-time location system (RTLS) technology provider Mojix to offer a “hands-free” RFID system using Checkpoint’s software and Mojix’s OmniSense RFID reader hardware. The two companies announced their global partnership at the RFID Journal LIVE! 2014 conference and exhibition, held last week in Orlando, Fla.

For much of its history, Checkpoint Systems focused on providing electronic article surveillance (EAS) stickers and hard tags that retailers attach to merchandise, as well as the antennas that detect those stickers and tags. In recent years, however, demand has been growing not only for Checkpoint’s EAS products and services, but also for RFID technology, says Alan Sherman, Checkpoint’s senior director of global marketing for merchandise visibility and RFID. “We’re seeing a marked increase in activity level across number of requests for proposal, customers, project size, number of tagged items, deployment sophistication and business value,” he states, “as the apparel retail industry increasingly adopts RFID solutions.”

At last week’s RFID Journal LIVE! conference, Checkpoint announced the Zephyr 2, its new EPC Gen 2 RFID label for the retail market, made with NXP’s Ucode 7 chip.

In 2008, to meet the growing demand for item-level tracking in the apparel sector, Checkpoint began providing a solution called Merchandise Visibility. The system includes RFID readers, EPC Gen 2 passive tags and labels, software, integration and all deployment and maintenance services. With the continued growth in apparel and other retail business areas, the company is expanding further into alternatives for tracking inventory via handheld readers or RFID portals deployed at multiple stores to collect data regarding the movement of merchandise through those portals. While some retailers are opting to install portals at dressing-room entrances or other doorways, others are seeking a more real-time solution that reduces the need for personnel to conduct periodic audits by carrying a handheld around a store or backroom—which can be a time-consuming process, the company notes. RTLS solutions enable management to know, in real time, which products are in which portion of the store.

For that reason, Checkpoint is partnering with Mojix to offer a hands-free alternative to RFID tracking for the retail sector. For Mojix, this is an early foray into a new market. The company has offered its STAR 3000 system for passive ultrahigh-frequency (UHF) RFID tracking in real time, predominantly for manufacturing and distribution purposes (see Mojix Announces the Availability of Its Next-Generation RFID System). The system consists of Mojix STAR receivers, eNodes and reader antennas, and exciters that enable users to view the locations of items tagged with passive EPC Gen 2 RFID labels, in real time, within about 1 meter (3.3 feet), 24 hours a day.

Now, says Mike Kastner, Mojix’s senior VP of global sales, the firm has introduced its OmniSense solution, which includes a version of the STAR 3000 system that uses algorithms modified to enable the tracking of goods in the retail market. For that sector, he says, Mojix’s solution also provides a software platform enabling users to switch between new modes specifically designed to support various retail use cases.

Checkpoint serves as the systems integrator for the OmniSense solution, which includes the company’s RFID labels and software applications. The partnership allows the companies to offer a full solution allowing users to detect the movements of goods around a store or distribution center, as well as Checkpoint software to interpret that location data and forward it to the retailer’s own management system. The solution is now being used by a high-value apparel store, Sherman says, which has asked not to be named. Although the store’s managers decline to describe their use of the system, Kastner notes that “they liked the notion of ‘always on’ and not requiring cycle counts” by staff members.

The OmniSense system consists of multiple reader antennas installed about 15 feet apart in a store ceiling, with exciters located around the store. When a tag is moved from one location to another, the system identifies that movement, as well as the tag’s new location, thereby enabling management to identify not only when a product moves and where, but also how often. That data can enable them to know, in real time, when products require replenishment, and to use business analytics to determine which products customers are picking up and which are being purchased. According to Kastner, the system provides data required for replenishments “with a high degree of accuracy.”

The need for RTLS technology, Sherman says, is “a good indication of the increasing sophistication in retail.” And seeking alternative RFID solutions, such as RTLS, is necessary for many brick-and-mortar stores, Kastner adds, since retailers often ship goods based on online purchases, and need to be able to do so quickly. “Those who can provide same-day delivery [to customers at the store] at low cost will be the big winners,” he states. “If you do a periodic cycle count, that [inventory] information is already aged. Handhelds are not good enough to support an omnichannel [model].”

Checkpoint’s own expansion into radio frequency identification has been significant during the past year, Sherman reports. Not only did the firm provide RFID technology for Kohl’s nationwide installation (see Kohl’s Rolls Out RFID for Select Product Categories at Its Stores), but it recently installed an RFID system for an unnamed retailer throughout 18 countries, at a total of 200 stores within a span of six weeks. The company teamed up with inventory service firm RGIS this year as well, which sends workers to retailer sites to attach RFID labels to store products.

To further its growth in the RFID market, Checkpoint developed the Zephyr 2, a new RFID label containing an NXP Semiconductors Ucode 7 chip. The Zephyr 2, also announced last week at LIVE!, measures 54 millimeters by 34 millimeters (2.1 inches by 1.3 inches), is designed for greater read speed and accuracy, and has earned certification from the University of Arkansas’ ARC Center for use on denim, poly-bagged apparel, boxed items and hanging apparel, for both North American and Europe. According to Sherman, the label is designed to provide retailers with a single tag that can be used on a large variety of goods.