RADIO FREQUENCY IDENTIFICATION

RFID Delivers Total

Case Studies from Around the WorldBusiness VisibilityCase Studies from Around the World

By Mark RobertiBy Mark RobertiFounder & EditorRFID Journal

www.rfidjournal.com

Case Study 1: Kimberly Clark Goal: •To increase sales of promotional items

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•To increase sales of promotional items

•RFID provides real-time visibility into the location of promotional displays

•Making sure displays are on the sales floor•Making sure displays are on the sales floor when promotions are advertised would increase salesincrease sales

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Challenges• Displays are packaged by 3rd party

Some 3rd party packagers have no Internet

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• Some 3rd party packagers have no Internet access or even electricity in facilities

• How do you tag items and track them?

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KC Developed a Mobile RFID System• Laptop running OATSystems software

Handheld RFID reader

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• Handheld RFID reader• Tag dispenser worn on the belt• USB Wi-Fi unit

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How the System Works• Product and packaging is shipped to 3rd party

RFID kit shipped to 3rd party

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• RFID kit shipped to 3rd party• Workers assemble promotional displays• Using belt-unit, workers tag each display

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How the System Works• Another worker uses a handheld RFID reader

to capture the IDs

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to capture the IDs• Data is transferred to the laptop via Wi-Fi

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How the System Works• When the promotional display arrives at the

retailer, the tag is scanned

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retailer, the tag is scanned• When the display is moved

to the sales floor the tag isto the sales floor the tag isscanned again

• The data is transferred toKimberly Clark

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Turning Data into Useful Information• Software can analyze the RFID data

Compare when a promotional display arrived

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• Compare when a promotional display arrived at the store vs when it was supposed to arrive

• Compare when a display was put on the sales floor vs when it was put on the floor

• Alert merchandises when display is not out on timetime

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Use the “As of Date” to see what the status was on 03/07/2006, 5 days before the event start. Note more exceptions.

Red stores, promotion items received, but still in backroom.

Yellow stores, promotion items expected, but not received.Yellow stores, promotion items expected, but not received.

Source: OAT Systems

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Results• Execution of promotional program improves

from 50-60% to 80-90%from 50 60% to 80 90%• Sales of promotional items rise by 20 percent

or moreor more• ROI in less than 1 year

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Case Study 2: American Apparely pp

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Case Study 2: American Apparely pp

• US apparel retailer•300 retail stores in 12 countries•300 retail stores in 12 countries•10,000+ employees•One manufacturing facility in Los Angeles

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Operational characteristicsp• Closed-loop; quick inventory turns• Boutique sales floor (1 of every item)• Boutique sales floor (1 of every item)• Display more items (37,000+ SKUs)• Labor intensive inventory management• Labor-intensive inventory management

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Achieving 99% product availabilityg p yGoals:• AA needed visibility into what was• AA needed visibility into what was

happening in the store • AA needed visibility into what wasAA needed visibility into what was

happening in the supply chain• AA needed visibility into what was y

happening at manufacturing

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Challengesg• Locate the estimated 10 percent of items

not represented on the sales floornot represented on the sales floor• Provide real-time visibility to stock room

employees about what needs to be p yreplenished

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Step 1: Tagging items• Every item is tagged with a hangtag that

has an Avery Dennison transponder in ithas an Avery Dennison transponder in it• Tags are applied before shipping, just as

bar-code labels were appliedpp• No additional costs beyond the 12 cents

for the transponder

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Step 2: Receiving at storep g• Product is received at a receiving station• Each item is automatically identified• Each item is automatically identified• Items are stored in the back of the store

until they need to be replenisheduntil they need to be replenished

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Step 3: Fill Stationp• When an item needs to be replenished, it

is brought to a “fill station”is brought to a fill station• Smart table identifies items and confirms

the right items are being brought to the g g gsales floor

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Step 4: Validation Pointp

• Items are scanned at a “validation point” between the backroom and sales floorbetween the backroom and sales floor

• It will let the employee know if they got all the right items or a missing some or havethe right items or a missing some or have some items that are wrong

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Step 5: Point of sale

• Items are automatically identified at the point of sale (speeding up checkout)point of sale (speeding up checkout)

• The RFID system automatically indicates the item needs to be replenishedp

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Step 6: Periodic Inventory Counts

• Employees take inventory with a handheld to validate the inventoryto validate the inventory

• Using bar codes takes 5 people 6 hours each (30 hours total)( )

• Using with RFID takes1 person 2 hours

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Benefits RFID has delivered to AA

• 99% Inventory VisibilityS l i f 14 36% i RFID t• Sales increase of 14.36% in RFID stores

• Labor reduction of 168 man hours per store thper month

• ROI in 4 months per store

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Case Study 3: UCSD Medical Centery

2 hospital system in San Diego, CA• 1,250 assets are trackedover 1 million sq ft

750 assets are tracked over 238 792 sq ft• 750 assets are tracked over 238,792 sq ft• Equipment is shared between the campuses

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Goals:• Lower rental costs

R d ff i hi f i• Reduce staff time searching for equipment• Minimize equipment theft and lossq p• Reduce equipment inventory requirements

I i t• Improve maintenance processes

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Selected Awarepoint Zigbee RTLSp g• Provides enterprise, multi-building coverage

Off l l t• Offers room-level accuracy or accuracy to within 1.5 meters in open areas

• No disruption during installation• No burden for maintenance and easy to use• No burden for maintenance and easy to use• Offered a low risk business model –

scalable as hospital adds locations and assets

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Selected Awarepoint Zigbee RTLSp g

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Some of Most Commonly Tracked Itemsy• IV pumps• Crash Carts• Crash Carts• Gurneys• Feeding pumps• Feeding pumps• Beds

PCA Pumps• PCA Pumps• Trays that are sterilized

C t t it d t• Carts, scopes, computers, monitors, doctor-specific equipment, blood transport coolers

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Benefits achieved

Infusion Pump Rental Fees• Month rentals down from nearly $8,000 in

March 2007 to $2,000 in June 2007• Month rental has stabilized at about

$2 300/month for more than 18 months$2,300/month for more than 18 months• Over $70,000 year in savings—on pump

rentals alone

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Benefits achieved

Analysis of equipment usage identified d d l t i t d t lunneeded replacement inventory and rentals

• Idle equipment monitoringq p g• Equipment usage patterns

St ff ld t dil fi d il bl i t• Staff could not readily find available equipment• Capital budget savings of approximately $450,000 for 2008

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You can learn more about the many benefits of RFID at:RFID Journal LIVE! 2010RFID Journal LIVE! 2010

8th Annual Conference & Exhibition8th Annual Conference & ExhibitionApril 14-16, 2010Orange County Convention CenterOrlando, Floridawww.rfidjournalevents.com/live

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Thank youy

For more information, contactM k R b ti Edit RFID J lMark Roberti, Editor, RFID Journalmroberti@rfidjournal.com

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