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Keeping close control over inventory

Keeping close control over inventory is difficult in the apparel and fashion industry because of the relatively short lifecycle and extensive variety of size, color and style. However, Radio Frequency Identification (RFID) offers an opportunity to improve inventory management in the store. The combination of anti-theft prevention and source tagging will provide for a realistic ROI.

In fact, the business case for SKU-level RFID tagging is already working well in the fashion and apparel segment. Capgemini?#8364;™s industry-specific RFID demonstrator offers proof that 100% read rates can be achieved in a real-life environment. The demonstrator has been used successfully at a number of fashion retailers.

Improving the Logistics Cycle through RFID

Capgemini, together with Intel, Microsoft and Tagsys, has developed an efficient logistics approach using RFID specifically for the retail fashion and apparel industry. This approach allows companies to optimize flows and manage stock and the delivery of goods into the stores. The approach incorporates the complete logistics cycle, from manufacturer to retailer:

  • Manufacturer textile plant: RFID tags are applied to each garment.
  • Warehouse or Distribution Center: When shipping or receiving orders, the content of shipping containers is identified via RFID.
  • Store: Frequent in-store inventory checks help improve re-order accuracy.

Our approach consists of five steps:

  1. Proof-of-concept: incorporates RFID demonstrator, macro process impacts, macro IT impacts, transformation plan, macro business case.
  2. Feasibility study: selection of solutions, process impacts, IT impacts, project plan, detailed business case.
  3. Pilot: pilot processes, IT integration, pilot project management, benefits tracking.
  4. Implementation: RFID implementation, change management, IT infrastructure and systems landscape, transformation management.
  5. Deployment: RFID infrastructure and labels, process and organization, embedding in systems landscape, partner adoption strategy, benefits realization.