TWL optimizes management with IBM radio frequency identification technology
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Recently, The Warehouse Group Limited (TWL), one of New Zealand’s largest daily necessities and apparel retailers, chose IBM as its main partner to implement the concept of how to use radio frequency identification technology (RFID) to improve inventory availability, radio frequency identification Technology improves inventory availability by enhancing supply chain processes, especially in-store inventory management. This is the first project of its kind in the Australasia region initiated by a retailer.
In August 2004, TWL established a cross-functional team led by the Information Services Department. “Between the end of 2004 and the beginning of 2005, we had an in-depth understanding of RFID theory, the application of RFID in the retail industry, TWL’s internal opportunities, and the ability of the Australasia market to support RFID procedures,” TWL Chief Information Officer Owen McCall Express.
In April 2005, the TWL RFID team organized an investigation and verification trip in North America and Europe, contacting many hardware manufacturers, service providers and major global retailers in North America and Europe.
“We believe that the application of RFID in the retail industry is realistic and feasible. RFID standards and cost curves are driving the application of RFID in a wider market, and some leading companies are also learning through action.” TWL Chief Information Officer Mr. McCall said, “We are We have evaluated the use of RFID solutions throughout the company and set the focus on in-store inventory management. In this regard, we believe that this application will provide our customers with the greatest benefits in a timely manner.”
TWL chose IBM as its main partner to undertake the practical work of its vision because of IBM’s strong global investment in RFID and its high reputation in New Zealand. In the actual process of conception, in addition to providing software and hardware products, IBM’s consulting team in the field of RFID also participated.
Brent Menzies, head of IBM NZ Wireless Practice, believes that the retail RFID model proposed by TWL is the first and most advanced of its kind in Australasia. Brent Menzies said: “We are optimistic that TWL’s investment in RFID will achieve a significant return, which can improve TWL’s services to customers, increase supply chain efficiency and supply chain capabilities.”
The readers and radio frequency tags (tags) and field engineering application support for this project were provided by Alien Technology Corporation. RFID printers and RFID tags are provided by Saito Group. Alien Technology’s International Vice President Andrew Berger said: “We are working closely with TWL, IBM and Saito, which strengthens our confidence that RFID can enable TWL to significantly improve customer service.”
If the current practice is successful, a pilot implementation will be carried out in 2006 to further refine how and where TWL uses RFID technology to improve supply chain execution and improve customer service.
The TWL RFID team is led by Group IT Architect Alan Mayo and Supply Chain Project Manager Caleb Nicolson.
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