Upload
smart-technology-group
View
125
Download
2
Embed Size (px)
Citation preview
R for RFID, R for Retail: All That Retail Should Know About RFID
Copyright © 2016 by Smart Technology Group
Smart Technology Group sp. z o.o. ul. Mackiewicza 19 | 31-214 Krakow | Poland | www.smart-tg.com
Office Krakow: Nuszkiewicza Street 17 | 31-422 Krakow | Poland | [email protected]
Office Rotkreuz: Suurstoffi st. 12A | 6343 Rotkreuz | Switzerland | [email protected]
CO
NT
EN
TS Introduction........................................................................................................................4
All you need to know about RFID..........................................................................................5
What is it for?.........................................................................................................6
Few words on RFID tags.........................................................................................7
What is the real cost of tags?..................................................................................8
Is RFID safe?..........................................................................................................9
Tailor-made RFID..............................................................................................................11
4 steps for success..............................................................................................12
Is it worth it? The simulation of RFID implementation...........................................13
RFID in your shop.................................................................................................16
Self-checkout with RFID......................................................................................21
Loyalty program: RFID and beacons.....................................................................22
Inspirations.......................................................................................................................25
SMART RFID for shopping centres.......................................................................26
All that counts in every race is only first place. Winner takes the most prestigious prize. Winner will be remembered, not
somebody who finished second. Similar race takes place in retail. Here, everyone wants to leave competitors behind, gain
advantage and have convincing victory. We tell you how to do it.
RFID technology is enjoying its popularity all over the world. Every day new chain stores, shopping centers, warehouses are
launching their own RFID systems. They perfectly know what benefits are guaranteed with RFID. News about it spread on the spot.
Thanks to this RFID guide, you receive the complete package of information which will help you in making the most important
decision for your business. Decision on using RFID.
Me and my team Smart Technology Group have been designing RFID systems for over eight years. It is our great pleasure to share
our expert knowledge and experience. If you consider that this report is not enough for you and you need more explanations or
advice – contact us. We will answer your every question.
PhD. Eng. Karolina Kozłowska
Smart Technology Group CEO
INTRODUCTION
4 R for RFID, R for retail
ALL YOU NEED TO KNOWABOUT RFID
To put it simply, RFID is a technology perfectly created for stock-taking, identification, products searching and
all other processes based on scanning. Never before they have been so easy to perform – as they are now with RFID. The
harmonious cooperation between RFID reader and tags will bring you results that you could only dream of.
It comes as no surprise that in short time this technology conquered retail market. RFID is used by big shopping malls as
well as single boutiques. RFID scalability means that every user can adjust it to one's specific needs.
4 key things about RFID:
scanning accuracy: 99,7%
number of simultaneously scanned products: 300
read distance: up to 20 meters
products can be identified through obstacles.
ANTENNAS
they send data from tags to reader.
Allow for strengthening signal and
increasing the maximal distance
between reader and tags
RFID TAGS
markers which are put on single
products, boxes, pallets, vehicles, or
loyalty cards
Typical RFID system consists of following devices:
5Smart Technology Group
READER
the heart of system, responsible for the
most of functions. All actions start here
and all data is sent to it. Reader may be
fixed (permanently installed in one
place, e.g. in warehouse, fitting room or
near cash register) or mobile (perfect for
stock-taking).
WHAT ISIT FOR?
The following metaphor is the best way to
explain how tags work: tag after being put on any item,
becomes this item. By identifying tag, you identify
specific product.
Tags are used for marking single goods, boxes, vehicles,
company's resources. Practically, everything can be
marked with them. The variety of tags shapes and sizes
makes that they work perfectly with fragile jewelry, all
kind of clothes and shoes, as well as pallets, boxes, and
forklifts. Advanced technology makes it possible to sew
tags in material, which makes them invisible for clients.
The most popular form of tag is sticker: durable and
easy to use.
Tags facilitate many processes, directly influencing
business results and shop management.
The crucial activities that will surely benefit from RFID
tags are:
stock-taking;
products and documents searching;
antitheft protection;
loyalty programs.
They act as middleman between tags and
readers. Data stored by tags is activated with
electromagnetic waves from antennas. This data is sent
to antennas and then to reader. When choosing
antennas, consider location where they will be
assembled. Different antennas will be suitable for
antitheft protection that for stock-taking.
The heart of RFID system. All data read from
RFID tags is sent to it and then is processed for our
interpretation and analysis. Reader is also our eye: it
helps us to see tagged products. The more
technologically advanced reader, the more visibility it
guarantees.
Mobile version is used for ad hoc stock-takings and
products searching. Mobile reader replaces barcode
scanner. Fixed version allows for automatic stock-
taking, identification of products brought by customers
into fitting rooms or put on counter to be purchased. It
works equally well in antitheft gates, providing efficient
protection from stealing goods: by clients and
personnel.
From the retail point of view, the key criterions for
selecting RFID reader are following parameters:
read distance – from what distance it will be
possible to correctly identify tags. It is crucial for
stock-taking;
maximum number of tags identified in one second –
how many products can be simultaneously
identified;
maximum number of antennas with which reader
can work – the bigger number, the bigger savings.
Instead of buying three readers, one will be enough
to gather data from 8 antennas.
Special attention should be paid to communication
interfaces: how many wireless technologies can reader
use to gather and send data to us? There can be found
readers which, apart from RFID, have additional built-in
modules, such as Bluetooth (this reader will work like
beacons), Wi-Fi, ZigBee and GPRS/GSM. Extra modules
help us in more efficient shop management, e.g. loyalty
program based on mobile application and traditional
loyalty card with RFID tags can be easily implemented.
RFID TAGS
ANTENNAS
READER
6 R for RFID, R for retail
FEW
TAGS
In retail, RFID technology can replace barcodes. Indeed, barcodes pale in comparison with RFID tags. Their usefulness becomes
surprisingly limited. Why are tags superior?
RANGEBarcode will be correctly identified only when scanner is only
few centimeters away. To identify RFID tag, this distance may
be… some meters. It means that employee who does stock-
taking does not have to come to every single product. It is
enough just to move RFID reader toward goods to immediately
and correctly scan it.
SIMULTANEOUS SCANNINGGreat convenience provided by RFID is the feature of correct
scanning up to 300 products at once. Yes: 300 products at once.
In comparison with barcodes, which must be scanned one by
one, it is a huge leap forward. RFID will successfully identify
single products placed in one box as well as tagged packages
put on pallet.
GREATER CAPACITYRFID tag can store much, much more data that barcode. It will
contain product name, model, serial number, experience date,
where it was made and by which producer… All that is necessary
for efficient shop and warehouse management. Can barcode
store as much data? Of course it cannot. Its capacity is 96 or 128
bits, while RFID tag can contain up to 2 kilobytes of data – 16
times more than barcode.
NO VISUAL CONTACTA scanner must see barcode to identify it. Any obstacle (sheet of
paper, carton box) or reversing barcode makes that it will not be
read. There is no such problem with products marked with RFID
tags. They will be correctly identified even when they are in box,
are covered with other products (e.g. on shelf) or have been
turned backwards.
LEGENDARY DURABILITYRFID tags are famous for its durability and longevity. They will
work even after sterilization that is necessary for hospital
equipment. There is no need to worry that after many years they
will lose their unique features – contrary to barcodes. Their
surface can wear off, they get wet or unglue from products or
boxes. This never happens with RFID tags.
WORDS
ON
RFID
Smart Technology Group 7
WHAT ISTHE REAL COST OF TAGS? Many managers claim that RFID implementation
is unprofitable due to high price of RFID tags. They
suggest that purchase of several thousand of tags would
cost fortune, while barcodes are cheaper. It is true: you will
pay less for barcodes. But… is a single unit price the only
cost worth considering?
Let's pay closer attention: when buying barcodes, we have
to take these costs into consideration:
operational costs – processes based on barcodes take
a lot of time. Every barcode must be scanned
individually. The only way for accelerating this process
is to engage more employees, what generates
additional costs;
personal costs – engaging more employees means
that they cannot perform their daily duties. Their
efficiency suffers and cost of their salary does not
bring expected results;
inaccurate stock-taking costs – accuracy of barcode
stock-taking is far from 100%. It results in imprecise
deliveries: it is uncertain which products should be
ordered and which one should be dropped;
unavailable goods costs – the consequence of
inaccurate stock-taking is also lack of knowledge
about the availability of our products and stocks. Thus,
clients may not find what they are looking for. And if
they won't, then we will not only lose potential profits,
but lose a client, too: he will choose better stocked
shop;
additional transport costs – if shipping from our
warehouse will be wrongly prepared (due to imprecise
products search or due to human errors), you must pay
twice for transport;
afterhours costs – stock-taking often must be
performed afterhours what is an extra cost for
employer;
closing costs – stock-taking performed in regular
hours means that shop must be closed and there is no
sale;
brand image costs – if stock-taking is imprecise or
performed too rarely, your personnel will not be able to
answer your clients' questions about products
availability or their location. And such discouraged
clients will go to your competitors.
It is time to scrutinize costs related to RFID tags.
Firstly, we pay for the pack of tags, and then we
calculate the rest of financial issues.
Due to tags, following benefits are generated:
decrease of operational and personal costs –
employees using RFID can do much more in much
shorter time, so they become more effective and
can fulfill additional duties;
afterhours savings – there is no more need to pay
for afterhours spent on stock-taking. With RFID,
this process lasts from several seconds to few
minutes. And it can be performed without closing a
shop;
profits from bigger sales – if we have full
information on our stocks and we can track
demand, we will precisely adjust orders to
customers' needs. Our goods will not endlessly
occupy our shelves;
savings on additional transport – RFID precision
eliminates all mistakes made at shipping
completion. You will not pay for additional
transport;
better brand image – performed on a regular basis
stock-taking with SMART RFID guarantees that
your clients always have full information on the
availability of products they are looking for. They
will never leave your shop empty-handed (nor with
empty bags).
The analysis of RFID tag price judging only on its unit
price, is not complete. The purchase of barcodes is
merely the beginning of serious expenses. At the other
end, there are RFID tags: their implementation starts
bringing regular and measurable savings. And while
we subsidize barcodes, RFID tags refund our costs.
8
At the first sight, barcode costs are invisible and
staggered, yet with real influence on current expenses.
Influence real, but also negative, alas.
R for RFID, R for retail
IS RFIDSAFE?
Can RFID be considered as a safe wireless
technology? The unambiguous verdict is difficult to
claim, but the newest achievements of Smart
Technology Group engineers make RFID one of the
safest retail technology.
Introduction of innovative, often groundbreaking
solutions for retail carries a great risk. Any mistakes,
such as abuse of personal data will be immediately
noticed and spread on the spot. One has to be also
especially careful to not generate unpredicted losses
caused by innovation.
It comes as no surprise that managers opt for
implementing new technologies only after thoughtful
and accurate analysis. Their stand, determined by
worth admiring care for their brands, is completely
understandable.
Not so long time ago, radio identification was a
solution rarely used by retail. However, the growing
number of successful implementations changed the
attitude of many brands. Today, it is easily noticeable that
RFID is more and more accepted. The new RFID systems
are being designed and implemented literally every day all
around the world.
T h i s p o s i t i ve t e n d e n c y w i l l b e s u re l y
strengthened by the recent improvements applied for
RFID. Or rather, for SMART RFID, to be exact, as the
products of this brand have been equipped with smart
mode. Thanks to these modifications, SMART RFID users
can be 100% sure that both them and their clients now can
enjoy safe solution. It will not be the exaggeration that
smart mode is innovative at worldwide scale. Apart from
Smart Technology, no company can offer it.
How does it work?
One of the biggest threat related to RFID came from the
possibility of illegal modification of tag unique content. It
stores such key product data as price, model, color, series
etc. Due to tag capacity, a lot of information can be saved
at tag. If content is changed (despite owner's will),
problems emerge. For example, expensive Italian shoes
could be purchased not for 1000 euros, but for 100 euros,
as such price could be set in tag. Or, what is even worse,
thief will not have to pay at all as he can modify tag that
antitheft gates will not detect it.
RFID: TAMED...
... AND SAFER
But it should be noted that such abuses are not
common. They require special hardware and tools,
while technical knowledge and cleverness are needed
to stay undetected. Plus, additional safe methods are
used, e.g. tag content is protected with password.
Smart Technology Group 9
Now, thanks to , these criminal actions smart mode
become almost impossible. The correct identification of
tags is guaranteed by readers. They are the key part of
every RFID system. The ones equipped with smart mode
can recognize that specific tag has been illegally modified.
Reader will notice salesperson so he cannot sell these
shoes with lower price. Reader will notice any attempt of
theft and launch signal/sound alarm, surprising a thief not
expecting that his shoplifting could be detected.
Smart mode solves also stock-taking problem. Tag has
two numbers built-in: EPC and TID. EPC is Electronic
Product Code, a unique serial code allowing for
identification of tagged product. TID is Tag Identification,
consisting of memory storing information about tag itself.
In most of cases, for products identification (e.g. during
stock-taking), it is enough to read EPC. But to prevent
frauds, some systems are designed in a way that requires
both EPC and TID for products identification. It increases
the level of security, as TID is almost impossible to be
faked (contrary to EPC). But, on the other side, this option
decreases the precision and speed of stock-taking.
As it is known, RFID guarantees 99,7% accuracy during
stock-taking, and up to 300 products can be identified
simultaneously in just one second. But when RFID reader
must identify both EPC and TID, efficiency declines. Plus,
stock-taking must be performed from smaller distance
and slower (e.g. stock-taking during forklift ride is not
possible).
It can be firmly said that RFID UHF readers Master 01 with
smart mode are tools that guarantee the previously
unimaginable level of security while using RFID. They are
the direct and effective answer for critics' objections
concerning threats presented by radio identification. If
only the other wireless technologies, implemented in
shops, warehouses or chain supply would have the
similarly advanced security protection, all retail could
sleep well.
SMART MOVE NO NEED TO WORRY
This challenge is solved with smart mode, because this
mode can identify “its own” tags and it does not read
illegally modified or created tags. With reader with
smart mode, precision of stock-takings, speed and
distance do not change at all.
WAL-MART: GIANT BRANDWITH GIANT RFID PROFITS
180 million dollars: thanks to better
knowledge of employees about every
product location
300 million dollars: faster searching for over
billion of pallets
575 million dollars: the elimination of internal thefts and
administrative errors
600 million dollars: additional profit thanks to reduction of
unwanted products on shelves
6,7 billion dollars: savings on work costs by elimination of manual
scanning of products and pallets
10 R for RFID, R for retail
TAILOR-MADE RFID Since its beginnings, RFID has been the subject of quite a lot of myths. Rumors about the legendary difficulties
with RFID implementation and installation are wide spread. It is difficult to pinpoint the source of this information.
Maybe it was triggered as an automatic association that advanced radio technology requires great effort to be
launched.
In reality, things are way simpler. Installation takes barely few hours, during which a warehouse of shop may be normally
functioning and be open. Hardware and software integration lasts shortly and no special effort is needed. Provided that
experts take part in these processes. Experts are the warranty that both installation and integration will run smoothly.
The choice of experts is even more relevant that the choice of hardware.
Cooperation with proper people guarantees professional advice regarding purchase of the most suitable devices.
Let's look closer at all steps of RFID implementation – of course, implementation done with experts.
Smart Technology Group 11
STEP 1.
If support from professionals
w i th w ide knowledge and
practical experience is such
important, then how to find
reliable partners? Firstly, analyze
their professional history,
achievements, clients, and
awards. The precious tip: the
more company is mentioned in
media , the better. This is
because journalists know who to
ask for expert comment. If some
companies are selected, then
request some information on
support they offer. Do they
develop individual plan? Help
w i t h h a rd w a re p u rc h a s e ?
Coordinate implementation and
give you after-sale support?
CHOICE OFEXPERTS
STEP 2.
Second step begins with the
analysis of needs: what is RFID
for? What effects should it bring?
W h a t p r o b l e m s s h o u l d i t
answer? It ought to be defined if
system will be used for stock-
taking, antitheft protection, or
loyalty program. Decisions made
at this stage determines the final
shape of all system as well as
hardware. A space, where RFID
will be working, matters, too.
Experts need this information to
come up with draft plan.
Smart Technology Group experts
use FlexSim, a software that
allows to precisely calculate
profits and savings generated by
SMART RFID. If it is planned for
warehouse to facilitate goods
reception or stock-taking, then
time needed for every operation
will be calculated, as well as the
number of employees engaged in
them. Therefore, person ordering
SMART RFID is fully aware of all
benefits.
PROJECT OFRFID SYSTEM
STEP 3.
Time to bust another RFID myth:
its implementation does not
require changing software.
S M A R T R F I D s m o o t h l y
integrates with MRP, ERP, WMS,
POS and any other software.
In teg ra t ion i s done by IT
specialists. While they do it,
warehouse or shop may normally
function: goods can be receipted
and sent, clients may be served.
Integration includes barcodes.
I t i s n o t t r u e t h a t R F I D
implementation is equal to
resignation from barcodes. Two
data carriers may be used
simultaneously.
SOFTWAREINTEGRATION
STEP 4.At final stage, small RFID reader
and antennas are assembled in
selected destination. Goods
must be marked with tags, too,
but it can be done by supplier in
his factory or distribution center.
Experts say that this is the best
solution. Hardware assembly
will run smoothly and has no
effect on shop or warehouse
funct ioning. No breaks in
m a n u f a c t u r i n g , s h o p a n d
warehouse are open, clients do
shopping and there is no need to
f o r c e e m p l o y e e s t o t a k e
obligatory vacation.
ASSEMBLY
12 R for RFID, R for retail
IS IT WORTH IT? THE SIMULATION OF RFID IMPLEMENTATION.
How precise can be the simulation of RFID implementation? Basing on experience, it can be said that results of
simulation done during planning phase, are very exact. As an example, let's use effects achieved while preparing SMART RFID
system for client from shoemaking industry.
All input data – number of pallets, boxes, manpower, time needed for specific duties – were submitted by client. It was then
used to create simulation presenting the detailed benefits provided by SMART RFID for following processes: goods reception,
stock-taking and completion.
3 employees
3 employees
3 employees
2 employees
3 employees
2 employees
33 pallets
33 pallets
100 packages
3300 packages
100 packages
100 packages
3300 packages
100 packages
8h
8h
5h
0,1h
UNLOADING
INVENTORY
COMPLETING
employee may carry
up to 5 packages
at once
10-100 packages
on one pallet
1
2
3
1 234567890
1 234567890
1 234567890
CONDITIONS
1/3 less
time
100 packages
on every pallet
CONDITIONS
Smart Technology Group 13
Apart from accurate calculation of operation processes and management optimization, it is possible to forecast real
savings, generated thanks to SMART RFID. And that is the way how benefits for customer (who previously had been using
barcodes) were calculated.
UNLOADING IN WAREHOUSE
COMPLETION IN WAREHOUSE
STOCK-TAKING IN WAREHOUSE
Data based on SMART RFID implementation for a client of Smart Technology Group.
Implementation in low storage warehouse.
Every pallet contained 100 boxes with products.
Data based on SMART RFID implementation for a client of Smart Technology Group.
Implementation in low storage warehouse..
Every pallet contains from 10 to 100 boxes with products. Displacement = 1%.
Data based on SMART RFID implementation for a client of Smart Technology Group.
Implementation in low storage warehouse.
BARCODES
BARCODES
BARCODES
RFID TAGS
RFID TAGS
RFID TAGS
*SM
AR
T R
FID
mob
ile r
eade
r N
EO w
as u
sed
for
scan
ning
and
sto
ck-t
akin
g.
** M
inim
al g
ross
hou
r w
age=
4 e
uros
.
NUMBER OF EMPLOYEES
NUMBER OF EMPLOYEES
NUMBER OF EMPLOYEES
33
8h
72 EUR
1 512 EUR
18 144 EUR
33
8h
72 EUR
1 512 EUR
18 144 EUR
8h
72 EUR
432 EUR
33
5h
30 EUR
630 EUR
7 560 EUR
33
5,4h
30 EUR
630 EUR
7 560 EUR
0,1h
0,9 EUR
5,4 EURPERFORMED 6 TIMES A YEAR**
NUMBER OF PALLETS
TIME OF UNLOADING*
TOTAL COST OF LABOR** DAILY
MONTHLY
YEARLY
NUMBER OF PALLETS
COMPLETION TIME*
TOTAL COST OF LABOR** DAILY
MONTHLY
YEARLY
STOCK-TAKING TIME*
TOTAL COST OF LABOR** DAILY
TOTAL COST OF STOCK-TAKING
14
UNLOADING, COMPLETION AND STOCK-TAKING
REAL LIFE SCENARIO
How much do you pay for all these processes?
How much would you pay if you performed them with RFID UHF?
SMART RFID implementation caused that general costs of scanning processes were reduced by .57%
1 day
1 month
1 year
216 EUR
3 024 EUR
36 720 EUR*
63,3 EUR
1 310 EUR
15 728,4 EUR*
152,7 EUR
1 714 EUR
20 991,6 EUR*
YOUR GAIN WITH**BARCODES RFID TAGS
*Sto
ck-t
akin
g is
per
form
ed 6
tim
es a
yea
r.
**S
MA
RT
RFI
D m
obile
rea
der
NEO
was
use
d fo
r sc
anni
ng a
nd s
tock
-tak
ing.
0 eur
5 000 eur
10 000 eur
15 000 eur
20 000 eur
25 000 eur
30 000 eur
35 000 eur
1 day 1 month 6 months 12 months
costs of processes with barcodes
costs of the same processes but performed with SMART RFID
SAVINGS
Smart Technology Group 15
RFID IN YOURSHOP
RFID IN ACTION
Time to look closer at specific ways of using
RFID technology. It is true that in comparison with
other wireless technologies, RFID stands out with its
flexibility and adaptability to various conditions. And
what is most important, it never loses its basic
features: precision, effectiveness, speed.
It should be mentioned about extraordinary
RFID feature: easiness of integration with other
software and technologies. Thanks to it, it was
possible to create SMART RFID, the brand of devices
which could use simultaneously many technologies:
RFID, Bluetooth, Wi-Fi, GSM/GPRS or ZigBee. Author's
idea developed by the engineers from Smart
Technology Group led to further increase of RFID
possibilities for retail.
16 R for RFID, R for retail
WAREHOUSE
AND BACK OFFICE
One of the places, in which RFID systems are the
most often deployed. No wonder: this technology works
perfectly there. Such processes as goods reception are
rapidly facilitated. RFID portal installed at entry gate
allows for immediate identification of products, packages
and pallets brought by trucks. One drive through portal is
enough to precisely scan all delivery. Of course, products
must be marked with tags.
Automatic products scanning eliminates the great
number of mistakes made by employees. These errors
usually result in low knowledge on products availability,
chaos in warehouse and wrongly tagged products which
caused problems in finding them on shelf or in shop. The
positive result of automatization is 91% acceleration in
transferring goods from warehouse to shop.
Access to information on stocks availability increase
availability of products on shelf by 80%. Staff perfectly
knows which resources should be ordered. The risk of
running out of stock (because no one noticed that new
orders must be made) is eliminated almost completely.
However, to have such knowledge, the SMART RFID
devices are needed.
The best tools for warehouse are:
– shelf equipped with fixed Real Time Inventory Shelf
RFID UHF readers and antennas, it performs detailed
and automatic 24/7 stock-taking;
- mobile RFID UHF reader, identifying up to 300 NEO 01
products, packages, or pallets in 1 second. It allows for
frequent and regular stock-taking;
– convenient solution for SMART RFID portal
automatic and group identification.
RFID IN MAKRO CASH & CARRY, REAL, MEDIA MARKT AND SATURN
20 seconds
20 seconds
12 minutes
6 minutes
time needed
for goods
reception
time needed
for goods
reception
time saved on
Dispatch Advice
(DESADV)
time saved on
Dispatch Advice
(DESADV)
SAVINGS IN WAREHOUSE:
SAVINGS IN SHOP:
SHOP
Systematic stock-taking should be performed in
shop, too. Firstly, personnel must be able to answer
clients' every question on products availability and
location. Secondly, employees should know how many
products are currently in shop to assess demand.
Research clearly show that client who did not find specific
product he was looking for, not only will leave unhappy, but
for future shopping he will more often choose
competition.
Smart Technology Group 17
Up to now, frequent stock-taking was impossible to
perform as it was too time-consuming and engaged many
employees. Plus, it was often necessary to temporary
close shop for its time being or force employees to work
afterhours. The alternative was imprecise orders, not
determined in any way by real consumers' demand.
Things have drastically changed thanks to RFID
technology. RFID readers can scan tags without visual
contact, from distance of 8 meters and the number of
scanned tags is 300. As the result, stock-taking in any
boutique (regardless its space, number of shelves or
goods) can be done every day. It takes just few seconds
and mobile reader RFID UHF, Neo 01 is used for it.
Already mentioned Real Time Inventory Shelf will do its
job, too. Matching shop's interior design, it helps with
convenient monitoring of products on shelves. At every
moment, any employee or manager may verify with
computer, what specific products are on shelves.
FITTING ROOM
Properly used RFID technology can result in
quantifiable financial results. It will come as an efficient
pro-sale support.
Great example of it is the usage of RFID in fitting room.
Client who enters it, brings in chosen clothes, shoes, and
other fashion accessories. All of them marked with RFID
tags.
It makes them automatically recognized by antennas and
readers in fitting room. On inside screen, client may watch
marketing videos encouraging him for further shopping.
Client may also check product availability in any colour or
size or even ask personnel to bring any product directly to
fitting room.
Equipping fitting room with RFID increases the conversion
level by 60%. It means that 3 of 5 customers will decide to
buy clothes they brought into fitting room.
CASH DESK
The biggest shopping nightmare may be long
queues, in which one must stand dozens of minutes. Such
a long-time is a result of necessity of scanning of every
single product by putting its barcode to scanner.
RFID easily identifies up to 300 products in 1 second. If
RFID antenna and reader are installed under counter, all
customer's shopping will be scanned instantly. No need
for individual scanning, it is enough just to put products on
counter, even if they are in shopping bag or basket.
Therefore, customer service lasts only 6 seconds. Time is
saved and much more clients may be served. And daily
profits are growing. Plus, people will notice that shopping
in such boutique is more pleasant, so they will come more
frequently. Especially in such hectic times like holiday
shopping or sales.
18 R for RFID, R for retail
LOYALTY GATES
ANTITHEFT GATES
Another way for increasing shop turnover is
effective loyalty program. It helps not only in monitoring
clients' behavior, but also allows for reaching them with
personalized offer, efficaciously encouraging them to
shopping.
If traditional loyalty cards would have RFID tags, then
every customer with this car could be automatically
recognized after entering shop. If there is a screen inside,
then any advertisement or slogan could be displayed on it.
It would serve as additional marketing incentive. Similar
action may be launched at cash-desk: if client's loyalty
card is recognized, he can get personalized discount as
a little “thank you”.
The interesting idea is to combine RFID with Bluetooth,
popular beacons. Such mix is possible thanks to SMART
RFID devices. They can effortlessly work with various
wireless technologies. Loyalty program built on RFID and
Bluetooth at the same time, can reach two times more
customers: ones using traditional card and ones using
mobile application on their smartphones. With SMART
RFID, loyalty program doubles its effectivity and reach.
Next area of RFID usage, that influences shop
functioning in a real way, is antitheft protection.
Detectability of products stolen by clients increases by
90% and by 98% when it comes to products stolen by
employees. Such tight protection from shoplifters
reduces losses and has a positive impact on final account.
COST REDUCTION =
PROFITS GAIN
Procter&Gamble Lake West Group Scottish CourageBrewing UK
3% 20% 10 mln
ca. 1,2 billion
dollars thanks
to improving
chain supply
time saved at
products
searching
savings after
shoplifting
reduction
Smart Technology Group 19
R for RFID, R for retail20
SMART RFiD
BARCODES
RFID UHF
TAKE YOUR PROFITS ON HIGHER LEVEL WITH SMART RFID
FULL KNOWLEDGE
ON GOODS AVAILABILITY
REDUCTION IN
LOST GOODS
99,7% STOCK-TAKING
PRECISION
300 PRODUCTS SCANNED
IN 1 SECOND
CUSTOMER SERVICE
IN 6 SECONDS DAILY GROWTH OF
TRANSACTIONS BY 6%
DOUBLY EFFECTIVE
LOYALTY PROGRAM
INCREASED
CONVERSION RATE
HIGHLY ENGAGED
CUSTOMERS
98% REDUCTION
IN STOLEN GOODS
PERFECTLY PRECISE
STOCK-TAKING
IMPROVEMENT IN
STOCK AVAILABILITY
EFFECTIVE
ANTI-THEFT PROTECTION
SATISFIED
CUSTOMERS
TIME-CONSUMING
STOCK-TAKING
IMPRECISE AND ERROR-PRONE
SCANNING OF PRODUCTS
RISK OF LONG LINES
OF FRUSTRATED CUSTOMERS
OLD-FASHIONED AND
LIMITED LOYALTY PROGRAM
SELF-CHECKOUTWITH RFID
Industry report from Vouchercloud brings
shocking statistics: British supermarkets lose 450 billion
of pounds every year. Reason? Queues caused by self-
checkout.
Self-checkout was introduced to facilitate customer
service. Allowing clients to personally scan products and
pay for them was supposed to shorten time spent in
queues. As it turns out, self-checkout resulted in the
escalation of problem. A typical client seeing long lines to
self-checkout, removes even 3 products from his
shopping basket. 64% respondents claimed it was caused
by too long and too slow moving queues. Products
removal is a way to save some precious time and leave
shop as soon as possible.
Such reaction is not surprising. People are getting
increasingly accustomed to immediate service and they
expect the same treatment in super- and hypermarkets.
Disappointment with long lines is strengthened as people
had been told that self-checkout is a faster and more
comfortable alternative for traditional way of paying.
Question must be asked: is self-checkout missed,
expensive and losses generating idea?
No – a simple task is enough to “repair” self-checkout.
Solution is to install RFID system. Customer passing
through a gate that has antennas installed, will have all his
products f rom shopping basket/car t scanned
immediately. All data is sent to cash register and customer
knows how much to pay. Time of customer service is
shortened to maximum 15-20 seconds which are needed
to push a cart through RFID gate, make payments and
collect a receipt.
Shop guests would eagerly use this facilitation. It can be
assumed that negative trend underlined in Vouchercloud
report would be reversed. Instead of products removal
from their baskets, clients would add more goods. They
would know that there would be no necessity to wait in
line.
It is important that such solution is not a hypothetical one.
In many boutiques, RFID antennas are installed at cash-
desk. Client puts his product on counter and in the same
moment it is known what products are purchased and how
much client should pay for them. Customer service takes
barely 6 seconds what saves a great amount of time. This
is precious, especially when many customers visit shop,
e.g. during holiday shopping.
Smart Technology Group 21
LOYALTY PROGRAM:RFID AND BEACONS
Published by PriceWaterhouseCoopers report
“Customer in digital world” analyzes reasons why on-line
shopping is more competitive than traditional one. What
matters is a profound knowledge on client's preferences.
Consulting experts prove that e-commerce staff knows
what any given person bought earlier, where he/she
comes from and what should be recommended to him/her.
Such data is collected simultaneously with on-line
shopping. Salesman in boutique should put much more
effort to access such information. But even then, his
attempts may fail. Therefore, such great attention is paid
to perfecting loyalty programs. They are expected to build
long-lasting, personalized relations with customers and
must be based on awareness of customers' preferences
and their shopping history.
Loyalty programs are one of the most important retail tool. They are used for building long-lasting relationship with
customers and for effective pro-sales actions. It is believed that thanks to beacons, loyalty programs could bring even better
results. But recent reports prove that beacons use their full potential when they are used with RFID technology.
LOYALTY SKILFULLY PROGRAMMED
As reports show, creating and managing loyalty programs
is far from easy. Hybris published its research “The
Contextual Marketing Imperative: The Evolution of
Personalization from Push Messaging To One-To-One
Personal Customer Experiences” in which its experts
argue that 61% customers would be less motivated to visit
shop again if they do not receive an offer which is highly
personalized. Experts from PWC reached the same
conclusion: according to already quoted report, 62%
clients resign from shopping in boutique if they are
discouraged by personnel. Another report, “Retail Without
Limits – a Modern Commercial Society” claims that
clients accept personalized offers: 25% of them demands
personalized transactions.
BARCODES
BEACONS
22 R for RFID, R for retail
Looking at these results, it would be easy to say that
loyalty programs work fine and managers know them
perfectly. But that would not be true.
Firstly, current schemes of loyalty programs seemingly
discourage consumers. According to PBS DGA research,
almost half of Poles rate the attractiveness of loyalty
programs as very poor and claim they are not interested in
using them. The older client, the less interested he is in
becoming a member of such program. It is due to fact that
increasingly ubiquitous technologies and loyalty mobile
applications are too innovative for baby boomer
generation.
Secondly, marketers themselves are constantly facing
troubles with selection of most suitable tools for creating
loyalty program and personalization. Hybris report puts it
clear: even though 91% marketing experts define
personalization as a key challenge, only 16% can register
customer preferences and reach clients in real time with
incentives based on genuine customer behavior.
NEW HOPE?
It is easy to draw conclusion. The biggest obstacle – both
for customers and managers – is technology. It may be
too challenging or it may be too disappointing and lacking
some serious features. It was hoped that situation would
change thanks to beacons and Bluetooth technology.
Every client downloading mobile application may be
identified by devices located in shop. Next, he gets
personalized discount or shopping offer on his
smartphone. On the closest screen, next to him, he will see
an ad, determined by his previous shopping history.
Bluetooth, a wireless technology that was greeted with
great enthusiasm, has some severe flaws:
application must be downloaded;
application must be launched during shopping;
smartphone must have Bluetooth 4.0;
customer must be convinced to use smartphone and
appreciate benefits it provides.
And not all clients share the interest in Bluetooth. They are
discouraged by numerous, obligatory to performed
activities, which are obligatory to receive personalized
offer. Decrease in interest in mobile application comes
with age. These are not solutions that would be eagerly
used by clients accustomed to traditional methods, such
as loyalty cards. Personnel can complain about beacons,
too. These devices require battery replacements; hence
they must be constantly monitored. Alas, it is difficult to
discover if any of beacon is not damaged and needs to be
repaired. Beacons are quite expensive, too, as well as
designing mobile application is.
RFID
Smart Technology Group 23
But it would be wrong to assume that beacons fail and are
not appropriate for loyalty programs. There is a great
number of customers representing younger generation,
who enjoy using mobile applications. But narrowing focus
only on one group limits the effectiveness of loyalty
program. It can also seriously deform statistics about
customers visiting shop.
2 BETTER THAN 1
There comes new solution with which there is no need for
compromise. Due to technology progress, it is possible to
combine Bluetooth (beacons) with second wireless
technology RFID (using tags).
Both technologies are similar in the basic mechanic. The
biggest difference is between beacons and tags. The
latter do not need batteries to be working. They are
activated by magnetic field emitted by antenna located
e.g. in loyalty gates, under doormat or at cash register.
Tags are also almost indestructible: they work in every
temperature, they cannot be broken nor damaged. They
have greater variety of shapes and sizes than beacons.
With tags, literally everything can be marked.
So, where should they be put to modernize loyalty
program? It is simple: on loyalty card. This would make
card easily recognizable at every client's entrance to shop.
Contrary to beacons, client would not have to make any
action. Just having loyalty card in pocket, wallet or bag
would be enough.
Data contained in RFID tag would be sent to RFID reader.
There, data would be interpreted and reader would decide
about displaying appropriate ad, giving a personal
discount, or suggesting in fitting room's interactive mirror
clothes matching client's previous preferences.
This innovative solution is offered by Smart Technology
Group. It can work with mobile applications, correctly
identifies signals sent by beacons and tags. Brand will be
able to build long-lasting relationship with all shop's
customers: these who use new technologies and these
who prefer traditional ways of shopping. The result would
be 50% increase of loyalty program effectiveness and
reach.
SMART RFiD
24 R for RFID, R for retail
INSPIRATIONS
Popularity of new solution is unceasingly growing in retail industry. There is a growing number of boutiques in which
benefits of RFID stock-taking are appreciated. There is also still a lot of praises about beacons which are considered as a
revolutionary way for reaching customers with personalized shopping offer.
How could shopping centers use these new technologies?
The number of new technologies in shopping centers and malls is getting greater. New solutions are
supposed to increase customers' convenience or help in managing the center. Owners of malls should be happy as
there are tools who combine both functions. These are SMART RFID devices, using up to 5 wireless technologies.
Smart Technology Group 25
SMART RFID FOR SHOPPING CENTERS
WHAT IS ALREADY AVAILABLE? Currently, the most popular technology used by
shopping centers is surely Wi-Fi. Sharing a free Internet
connection has become an obligatory convenience,
expected by all visitors. In passages, there are multimedia
stands which allow for printing discount coupons.
These stands are often equipped with barcode scanner
which is used for organizing a lottery or similar events
with clients' engagement Some malls implement
technologies for car parks management. These
technologies automatically identify cars, lead to available
parking lots and charge drivers depending on duration of
parking. Almost every mall uses counter at entrance/exit
for footfall control.
Equally popular are mobile applications. The most often
they contain mall map, list of shops and news widget.
Separate category, in which technologies are used, is
event organization. Augmented Reality is probably the
best example of attractive implementation wireless
technologies into mall's event strategy.
However, great disadvantage of current state is fact that
there is no one tool, combining all these features. If
shopping center wants to be a modern and functional
place, its administration must use many different
systems, programs, or applications. Which is far from
modern and functional, isn't it?
Imagine this: car pulls in mall's car park.
Barrier lifts after scanning the loyalty card. At the same
moment, information goes to mall's database that
specific customer, identified by name and surname,
showed up in shopping center. Instead of loyalty card,
smartphone with mobile application could be use. In
that case, one shake with smartphone would be
enough to lift barrier.
When customer enters passage, RFID antennas and
readers assembled inside identify him and based on his
previous shopping experience, he gets personalized
and tailored-made discounts. He can also see current
promotions and ads, displayed for him on screens or
multimedia stands he passes in passage.
Simultaneously, the advanced system can monitor his
location in real time. Mall's management sees which
boutiques attracted visitor's attention, in which zone or
on which floor he spent the most of his time, which
restaurant he chose. When leaving, he will open barrier
with loyalty card or with mobile application. This will be
his last dispatch: how long did his visit last.
The key conclusion is that to run and manage all these
functions only SMART RFID is needed: Master 01
reader, set of antennas and loyalty gates. All perfectly
integrated and working smoothly.
WHAT COULD BE AVAILABLE
WITH SMART RFID?
26 R for RFID, R for retail
WHAT WOULD CLIENT GAIN WITH SMART RFID?
Primarily – comfort during visit and strong feeling that he is in a friendly space. Using mobile application or loyalty
card for car-park, driver would not have to waste time for traffic jams on narrow roads leading to shopping centers. Discounts
offered customer would be personalized, hence more expected and attractive, matching his preferences.
WHAT WOULD MALL BOARD
GAIN WITH SMART RFID?
The key issue is easy access to many strategic
processes, determining business and marketing
operations. All information on customer's profile and his
preference would be sent to one, easy to use tool. What's
more, profile would be updated in real time. Marketing
department would not have to organize costly exit pool
research to learn anything about visitors. It will be easy to
evaluate such important parameters like time spent in
shopping center, characteristic of visitors, most popular
shops, and frequency of visits.
It would result not only in precious knowledge, but also in
savings, like the already mentioned elimination of
marketing research.
SMART RFID allows for locating in real time clients who
have mobile application or loyalty card. Location of
products or equipment is easy, too. SMART RFID can be
used for marking e.g. segways.
Implementation of such technologically advanced
solution has a positive impact on the process of creating
brand image – among tenants as well as clients. First
group will surely appreciate detailed and updated
information about clients. They will eagerly use SMART
RFID as a new marketing channel for communication with
clients.
Latter will see shopping center with SMART RFID as a
modern and friendly place, taking good care of its visitors.
It will result in more frequent visits and shopping.
TURNOVER INCREASE AFTER REDUCTION OF PRODUCTS SHORTAGE Stock-taking with SMART RFID may be performed even couple of times a day. It makes easy to control stocks and make
precise orders in advance.
These are quite spectacular proofs of RFID benefits:
TYCO The GAP
AccentureMeadWestvaco
TescoMcKinsey
1,6% totalsale growth
3% total retail sale
6,2% totalsale growth
2% clothes salegrowth
3-8% total salegrowth
4% DVD salegrowth
Smart Technology Group 27