Motorola RFID technology improves safety and inventory management in Saudi jewelry stores
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Typical application: Jade Jewellery
Saudi Arabian jeweller Jade Jewellery operates four jewellery shops throughout Saudi Arabia and is also a professional provider of European jewellery and diamond jewellery markets. In addition, Jade Jewellery also operates a diamond business, providing exquisite diamond jewelry designs for high-grade customers.
Challenge: Frequent crises in jewelry safety and inventory management
Jade Jewellery has suffered huge losses due to internal theft and lost jewelry. Jewellery with a total value of approximately US$267,000 (close to one million rials) was written off from the company’s books. However, due to lack of evidence, the company was unable to prove to the police that the company had committed theft. This situation in turn affected inventory accounting and prompted Jade Jewellery to turn to Depco Systems, a partner of Motorola, a leader in radio frequency identification (RFID) solutions, to find a solution that can monitor sales and in-store activities.
Solution: Motorola RFID solution
Depco Systems commissioned three RFID hardware manufacturers, including Motorola, to conduct a six-month test. After rigorous testing, Jade Jewellery chose Motorola’s XR480 RFID reader. The reader can integrate a variety of applications, including Depco Systems’ software application-“Asset Trail-Intelligent Store” (Asset Trail-Intelligent Store), this application can monitor, control and monitor tagged jewelry. track.
Motorola’s RFID solution includes hardware and asset tracking applications, and integrates existing proprietary ERP software. It can be customized according to the company’s policy to realize the monitoring, tracking and control of all goods in the store. The solution can react to the behavior of employees. If the employee violates company policy when handling goods, the system will alert the manager.
Now, every piece of jewelry in the Jade Jewellery store will be affixed with a passive RFID tag before being put on the counter for display. The tag can store data and use radio waves to automatically identify the goods. Motorola XR480 RFID readers are installed on store entrances, exits, and shelves in front of safes.
In order to further improve the security measures, each employee received a door card, which is used to record the employee’s behavior in the main server, and to ensure that the employee does not trigger an alarm when touching the jewelry. The system allows Jade Jewellery employees to take the jewelry out of the box within one minute and place it on a display bracket or other display facility. If the employee needs to put the display tray on the table for customers to watch, the antenna installed in the center of the tray will monitor the tray before the tray is placed back on the shelf or display container. During operations such as sales, transfer, delivery or safe replenishment, any abnormal handling of goods will trigger an alarm.
At the end of every day, employees will start a process in the “Asset Tracking-Smart Store” application to notify the system that all goods have been placed in the safe. The jewelry is placed on the POS table, and the system confirms that the jewelry has been placed in the safe. The system ensures that the goods have been put back into the safe through a dedicated antenna installed in front of the safe door, and confirms that the jewelry transfer has been completed before the safe door is closed and the system is cut off.
Asset tracking applications can also monitor other services such as the transfer, delivery, and customer returns of goods between stores through RFID readers.
Ms. Sukaina H. Mackie, owner of Jade Jewellery, said: “The goods we deal in are expensive jewelry. Any internal or external theft will cause irreparable losses to the company. Therefore, we need a strict and extremely High-safety in-store management and monitoring mechanism. The combination of Motorola’s RFID solution and asset tracking application not only solves all our worries, but also provides convenience for us to better expand our business.”
Effect: Implement tracking of in-store goods and improve store operation efficiency
Before the implementation of Motorola’s RFID solution, Jade Jewellery’s regular inventory counting work was performed manually, which usually took two to three working days, consuming a lot of valuable time for employees. Moreover, since the theft of the goods may not be detected until one or two months later, the company will also suffer huge losses due to the theft of the goods.
In January 2008, Jade Jewellery implemented Motorola’s RFID solution in its jewelry store. Now, the inventory of Jade Jewellery’s entire inventory can be completed in about ten minutes, and there have been no internal thefts in the store. Now the return on investment of Jade Jewellery has climbed to about 400%. With the help of the “Asset Tracking-Smart Store” application, Jade Jewellery has also realized the tracking of all processes and activities related to the management of profitable retail business.
Motorola’s RFID solution also has a screen report function that can display the activity of goods in the store. This function can capture information such as customers’ behavior, taste and preference for specific jewellery. Now, Jade Jewellery can quickly determine the types of products that are most popular with customers in each store, provide reliable references for the business team to order new products from suppliers, choose which product series to introduce, and reduce inventory turnover time.
Ms. Sukaina H. Mackie said: “The Motorola RFID solution enables Jade Jewellery’s management to track product sales and employee activities in the store, so we can adjust the performance bonus according to the level of effort employees have when they sell products to new and existing customers. “
The implementation of Motorola’s RFID solution makes Jade Jewellery the first and only “smart store” of its kind in Saudi Arabia. RFID technology can monitor the daily operation of the store in real time, assist the jewelry store to implement company policies related to the processing of goods, and greatly improve the operating efficiency of the store. After the pilot is successful, Jade Jewellery hopes that other stores can deploy Motorola’s RFID solution.
Inspired by Motorola’s RFID solutions, Jade Jewellery is also looking for more ways to continuously improve the system. At present, the company team is studying how to improve the flexibility of the label and its tamper resistance, and set out to create a new mobile solution for the product tour.
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