Following the cutting edge of technology, Singapore retail company Decks adopts RFID technology
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Singapore retailer Decks is using RFID technology to manage inventory and transaction processes in 35 stores. The RFID technology is provided by SATO. Since the retailer adopted the system nine months ago, the annual man-hours spent on inventory counting have been reduced from 2,520 hours to 150 hours. This can attract and retain qualified employees.
Decks sells clothing under the brands of Island Shop, Beverly Hills Polo Club and Surfers Paradise in major shopping malls in Singapore. Company manager Kelvyn Chee said the company has a forward-looking attitude towards technology. The company not only wants to clearly understand the inventory information of each store and distribution center, but also wants to make the process of collecting employee information easier. In this way, the store can increase sales by ensuring that there is no shortage. The retailer started looking for a solution in October 2013.
(In the distribution center, Decks installed an entrance with a built-in Zebra FX9500 UHF fixed reader and AN480 reading antenna)
Before deploying the RFID project, Decks distribution center employees would spend 600 hours a year on inventory, and the inventory accuracy rate reached 88%. The company determined that RFID will speed up inventory counting, better track sold items and increase employee retention.
Decks finally chose the SATO solution to automate the inventory management process. Charles Tan, former head of sales for software and solutions in SATO Asia Pacific, said that both companies use a problem-solving process called genbaryoku (field force), where managers and employees jointly identify problems and jointly develop solutions on site.
Initially, Decks marked the received goods with tags at the distribution center. But recently, suppliers began to attach EPC Gen2 passive UHF tags to production sites. Chee said that the company attaches labels to all products, including low-priced items, and has achieved visibility of each item.
After the supplier receives the Decks order, it will be printed and coded using a SATO printerRFIDLabel. Then, the supplier attaches these tags at the factory and sends them to Decks’ distribution center in Singapore.
In the distribution center, Decks installed an entrance with a built-in Zebra FX9500 UHF fixed reader and AN480 reading antenna. When the goods arrive, the staff will use the “cargo receiving” function in the SATO software according to the reader screen prompts. After the label is read, it will be associated with the order information and the status will be updated. SATO software is integrated with Decks’ existing ERP software, so these data will be automatically transferred to the ERP management system.
This method replaces the past system. In the past, employees would scan the barcode of the item to confirm.
When the distribution center sends the replenishment order items to the store, the employee uses the reader entrance to read the RFID tag of the item, and then the data is updated to the software. Normally, the warehouse conducts an inventory count once a year, which is currently performed using a Zebra MC3190-Z handheld reader.
After the store receives the goods, the employees will use the MC3190-Z reader to read it, thereby updating the goods information. They also use the reader to perform inventory counting and compare with existing inventory. When the inventory is found to be inconsistent with the expected on-site inventory, the software will display a warning. In-store inventory counting takes about 5-15 minutes to complete.
When purchasing items, consumers need to walk into the self-service cashier. The built-in Nordic ID Sampo reader can read the tag ID. Next, the reader will update the inventory data to show the items that have been sold, thereby updating the replenishment data.
(When buying items, consumers need to walk into the self-service cashier. The built-in Nordic ID Sampo reader can read the tag ID. Then, the reader will update the inventory data to show the items that have been sold, thereby updating the supplement Goods data.)
Chee said: “We have reduced the cashier time and also reduced the demand for cashiers.”
Decks installed Zebra FX7500 fixed readers at the exit of each store, replacing the EAS system previously used and reducing the need for EAS tags. The self-service cashier will change the EPC information on the label of the sold item. In this way, after the tag leaves the exit, the system will know whether the product has been purchased, and the reader will not trigger a warning. If the item is not purchased, the exit reader will issue a warning.
Chee said that since the system was put into use in June 2015, the company has already enjoyed several benefits. The inventory count time for distribution centers and stores has been reduced to a few hours. At the same time, the inventory accuracy reached 99.8%.
In the past, inventory counts were rarely carried out in stores, but now they are carried out once a week or two weeks. This is because the inventory counting speed has increased. High-precision inventory information also prevents out-of-stocks.
In the future, the system will also help attract and retain employees because it provides an easier method than manual methods. He said: “Employees can spend more time with customers. Decks is one of the most technologically forward-looking companies in Singapore, and we want to retain employees.”
In the future, the company will install this system in all new stores and integrate it with POS software. Chee said: “This will help improve company efficiency and reduce human dependence. It will also help attract and retain existing employees.”
(Exclusive manuscript of rfid world network, please indicate the source author for reprinting!)
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