Macy’s uses RFID to successfully promote an omni-channel order fulfillment strategy
chrispeng [ad_1]
Tyco Retail Solutions announced on January 19, Macy’s innovative applicationsRFID, Through the unique “Pickto the Last Unit” (Pickto the Last Unit, P2LU) plan to promote the omni-channel order fulfillment strategy. With Tyco’s TrueVUE RFID inventory visibility platform, Macy’s utilizes full inventory matching and establishes enterprise-wide inventory accuracy in key product categories to meet customer needs. This high level of inventory accuracy and visibility helps Macy’s to promote sales and provide customers with a better shopping experience.
As a customer-centric retailer, Macy’s omni-channel strategy focuses on shopping anytime, anywhere and in any way for customers, providing an intelligent combination of iconic brands and matching. The retailer recognizes that for a single order, the physical store may be their biggest asset, and basically uses the comprehensive combination of its own inventory to play a substantial and flexible “warehouse” role. With item-level RFID, Macy’s can focus on product matching and services, while using existing inventory to meet order fulfillment needs. The inventory management changes that support this omni-channel strategy have helped Macy’s storefronts save $1 billion in inventory.
In order to advance this effort, Macy’s has launched a unique P2LU program for the omni-channel order fulfillment strategy. P2LU tries to ensure that the last item in any store is available for sale and easy to find for fulfilling orders. Generally speaking, retailers will not put the last item in a stock keeping unit (SKU) for online sales because they have no confidence in the accuracy of the inventory and are afraid that this item will not be found.
Peter Longo, President of Logistics and Operations at Macy’s, pointed out: “In the store, the last item accounts for about 15% to 20% of the inventory. This is a huge budget and can only be reduced or not sold, and this problem can be Solved by RFID.”
Using Tyco’s RFID inventory solution, Messi Department Store conducted a P2LU pilot in the women’s clothing department and achieved impressive results. The sales achieved by the pilot stores were much better than last year. The price reduction of pilot stores also showed a trend of improvement compared with other stores. Macy’s now confidently believes that even if there is only one item left in its inventory, it can still meet customer needs.
Using single-piece inventory, Macy’s can help drive sales and profitability. In addition to regular promotions and first price reductions, the retailer reduced inventory costs by reducing temporary inventory requirements by one-third.
Nancy Chisholm, President of Tyco Retail Solutions, said: “Macy’s is a good example of item-level RFID to promote inventory optimization, opening a new world for the success of omni-channel order fulfillment. By leveraging our unique RFID inventory visibility Products, Macy’s department store has a complete view of the company-wide inventory, meeting the needs of customers, and realizing their vision of “buy anywhere, fulfill anywhere”. It not only enhances the overall customer experience, but also maximizes the overall Channel planning revenue opportunities.”
In October 2015, Macy’s Department Store won the 2015 Store Operations Superstar Award from Retail TouchPoints. This legendary retailer also won a gold award in the “Inventory Optimization” category for their innovative application of RFID and the use of storefront inventory to fulfill omni-channel orders.
[ad_2]
