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Recently, 13 Soma underwear stores under Chico, a fashionable women’s clothing retailer, completed a one-year trial operation of RFID technology. Currently, the company intends to use this system permanently and integrate it with the POS system. At the same time, the company also intends to expand the scope of application of this solution.
Jamie Kress, Tyco sales and strategic account manager, said the pilotRFIDSolutions are provided by Tyco. This solution can realize project-level tracking of the whole process from distribution center, warehouse, store site to weekly inventory. Meanwhile, Tyco TrueVue software stored on the server manages the collected data, determines inventory shortages and monitors the movement of goods through the store.
Founded in 2004, Chico owns 4 womenswear brands including Soma underwear. In 2010, the company adopted RFID technology for the first time. At the time, the company attached passive EPC Gen 2 UHF tags to sample garments to enable item tracking during garment inspection. The samples will eventually be sold to staff at a store at Fort Meyers headquarters. In 2011, Chico began working with Tyco to trial the technology in stores, Kress added. Companies attach tags to items and install readers on sales floors and in warehouses. In this way, the company can manage the merchandise in the sales area and ensure the timely display of samples.
After the project was completed, the company deployed an RFID system in its Soma store in Naples and hired some experienced staff. In 2013, the company deployed the system in another 12 stores and appointed captains to check the pilot results.
Soma has been facing difficulties in tracking inventory due to the variety of styles, sizes and colors of bras, panties and other items. Before this RFID system was installed, Soma only performed inventory counts a few times a year. Therefore, it is difficult to guarantee the inventory on the sales site.
Incoming goods management is another time-consuming task. When the goods arrive at the warehouse, employees need to open each box to identify the model and decide whether to ship directly to the sales area.
The RFID system makes this task easier than ever, Chico said. The company affixes Avery Dennison’s AD-318 tags to the clothes before shipping to the 13 stores. These RFID tags were printed and encoded by an Avery Dennison 9855RFMP RFID printer. At the same time, the TrueVue software records the unique ID number on each label and displays the shipping destination.
After the goods arrive at the store, the staff can use the MC3190-ZReaderCaptures the ID number of the label inside the box. At the same time, staff can also use the reader for weekly inventory checks.
Additionally, staff can use the Reader Geiger Counter Mode to help customers find specific models or styles of merchandise.
FX7400 readers are also installed at the checkout to mark item purchases and update TrueVue software information. At the same time, store personnel and company management can also check inventory levels on TrueVue to determine whether replenishment is required.
In addition, the company has installed readers at the exit to obtain out-of-store merchandise ID information. If the item is not purchased, the system will recognize this information and issue an alert.
Kress said the system is currently used on all clothing in 13 stores. Each store conducts a weekly inventory count and guarantees 90%-95% inventory accuracy.
Next year, the company plans to integrate TrueVue and Soma’s POS system. This way, companies can achieve more automated inventory management. The company also plans to roll out the system to other Soma stores in 2015-2016, Kress added.
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