TYCO RETAIL SOLUTIONS. ID-ea event, The Magic of … · Leveraging RFID for ... based on bad data...

Mario BeltramiMay 2016

The Magic of Macys:Leveraging RFID for

Pick to the Last UnitOmni-Channel Fulfillment

3 2016 Tyco. All Rights Reserved. 3

$10+ Billion Annual

Revenue

Market LeadershipR&D Spend: $275 Million

ProvidingCustomer Value

Through Innovation

Strategic CustomersGlobal Support

Scale & Experience57,000 Employees

// Global Leader in Technology and Innovation

Global ReachPresence in 94 countries

50 Direct; 44 Indirect

Copyright 2016 Tyco. All Rights Reserved.

4 2016 Tyco. All Rights Reserved.

Tycos Key Enterprise Solutions

Fire Protection Integrated Security Solutions

Electronic Article IntelligenceHigh Theft SolutionsSource Tagging SolutionsTraffic IntelligenceVideo Based In-Store Analytics

RFID- Enabled Solutions:// Inventory Intelligence

Integrated Store Performance Professional Services

Retail Store Performance & Loss Prevention

Supply, design, installation, monitoring, maintenance and auditing services for:

Fire alarm and detection systemsWater based fire suppression: Sprinkler, deluge & water mist systemsSpecial Hazard Systems: Foam, clean agent and inert gasMass notification systemsEmergency fire responseMechanical products including valves, piping and coupling for engineering and design projects

Life Safety

Supply, design, service & installation of:

Access control / BiometricsIntrusion detectionPerimeter protectionVideo surveillanceSecurity MonitoringCommand & Control (PSIM)RFID, Real Time Location Systems (RTLS)Vehicle & Gate ManagementDuress & notification systems

// Respiratory protection systems// Thermal imaging products// Gas and flame detection // Personal protective

equipment// Compressors// Communication Systems


One Company with a Portfolio of Flagship Brands

FIRE PROTECTION

ELECTRONIC SECURITY

RETAIL

LIFE SAFETY


GLOBAL INTEGRATED SOLUTIONS AND SERVICES


$1B Business Unit

Market Leadership

SolutionPortfolio

Global Customers

Scale &Experience

With nearlyof excellence in retail, we have the expertise to understand your needs, the technology to meet them, and the comprehensive technical, professional and support services to ensure your long-term success.

Tyco Retail Solutions // Industry Impact

GlobalReach

8 2016 Tyco. All Rights Reserved. 2016 Tyco. All Rights Reserved. 8

IBM RFID Prediction Nine Years Ago

IBM RFID Prediction Nine Years Ago

2016 Tyco. All Rights Reserved.

Agenda

10

SummaryWelcome to MacysAligned with the Customer, Prepared for GrowthThe ChallengeThe SolutionMacys Pick to the Last Unit ProgramThe Results


Summary

Increased sales & margin

Reduced markdowns

Enhanced customer experience

Industry: Department store

Solutions: RFID Inventory Visibility

Benefits: Improved inventory accuracy & visibility

Inventory optimization

Omni-channel fulfillment


Welcome to Macys

Established 1858, New York City Retailer with nearly 800 stores + online at macys.com Sales of over $28B Its famous flagship located at Herald Square in New York

City is known as the Worlds Largest Store, with over 1.1 million square feet of retail space

Shopping experience: the customer is paramount, as in the brick & mortar stores as online


Aligned with the Customer, Prepared for Growth

Macys is committed to helping its customers shop anywhere, anytime, and anyhow they choose, by leveraging the entire inventory of the company to satisfy demand: buy anywhere, fulfill anywhere model

M.O.M. My Macys merchandise assortments, Omni-channel integration, and Magic Selling customer engagement


You dont want to make decisions

based on bad data

Peter Longo, Macys President of Logistics and Operations


The challenge

Inventory degradation occurs at a rate of about 2-3% a month stating

Item-Level RFID: to help ensure inventory is optimized across the entire enterprise

By working with Tyco Retail Solutions and leveraging the TrueVUE RFID Inventory Visibility platform, Macys was able to establish a foundation of inventory accuracy in key replenishable product categories across all 800 stores


The solution

The overall changes to inventory management in support of this omni-channel strategy have enabled Macys to reduce $1B of inventory from its stores

The company realized that brick and-mortar stores could be their greatest asset for single unit orders, essentially functioning as robust and flexible warehouses to utilize the full assortment of owned inventory. With item-level RFID, Macys can focus on assortment and service while using their existing inventory to address fulfillment demands


Gather new insights into the sources of fraud, shoplifting and internal theft.

Achieve real-time inventory visibility to improve inventory accuracy and operational efficiency.

Attain increased shopper visibilityby capturing and analyzing customer traffic patterns in and around the store.

Complete In-StoreVisibility Solutions

Connecting Data and Devices and across all Solutions Sets to a Single Integrated Platform

Reducing Theft andImproving Store Operations


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Macys Pick to the Last Unit Program

P2LU for omni-channel fulfillment attempts to ensure that the last unit of an item in any store is able to be easily located and made available for sale

The success of this strategy is possible due to the inventory accuracy and visibility enabled by RFID technology


The Results

The use of RFID has been a game-changer for Macys in driving inventory accuracy which is critical to execution and omnichannel fulfillment

In addition to sales lift on regular and first markdowns with the rollout of RFID, Macys has reduced inventory costs by lowering interim inventory requirements by one third


Macys RFID Journey

Inventory count 1x / year

Inventory accuracy deteriorates 2-3% per month

Inventory accuracy 60-70%

BEFORE RFID

1x / year & can cycle count up to 24x / year

Achieve nearly 99% accuracy w/annual inventory

Annual inventory accuracy 95%

RFID categories out performed non-RFID categories with avg. 10% sales lift

WITH RFID

B2F Back to Front, Sales Floor Replenishment

Increased sales and margins, reducing MDs

1/3 reduction in basic stock required on-hand

Improved display compliance from avg. 65-70% to nearly 100%

P2LU Pick to the Last Unit

Leverage 15-20% of store inventory that exits in single units

Omni-channel readiness enabling $1B reduction in store inventory

Sales lift on regular & 1st MD merchandise

BEYOND REPLENISHMENT

Peter LongoMacys, President, Operations and Logistics -January 2015

RFID is your foundational air supply

to deliver an omni-channel promise.

Source: GS1 panel discussion -- January 13, 2015 at NRF Big Show


Age of Amazon:Challenges & Opportunities

Source: RIS / Gartner Retail Technology Study 2016

1. Developing personalized marketing capabilities 51%

2. Network and IT systems security 47%

3.Leveraging social media (for sales, CRM, hiring, customer service, etc.)

46%

4.New payment technologies(EMV, contactless, mobile, etc.)

45%

5.Expanding unified commerce (omnichannel) initiatives

44%

Top 5 major strategies over the next 18 months

Top 5 challengesover the next 3 years

1. Customer data security 49%

2. Retiring legacy systems 46%

3.Optimizing digital commerce as growth channels

39%

4. Application integration 35%

5. Optimizing stores as a growing channel 29%

Investments in technologies that improve the retailers ability to meet customer

expectations, exploit innate strengths, overcome weakness and disintermediate

others, will move the needle. Make wise choices.


Technology Will Continue to Disrupt the Store


Mario BeltramiRFID Presales Support

[email protected] +39 328 4208713

Thank You

Diapositiva numero 1Diapositiva numero 3Diapositiva numero 4Diapositiva numero 5Diapositiva numero 6IBM RFID Prediction Nine Years AgoIBM RFID Prediction Nine Years AgoDiapositiva numero 10SummaryWelcome to MacysAligned with the Customer, Prepared for GrowthYou dont want to make decisions based on bad dataDiapositiva numero 15The challengeThe solutionDiapositiva numero 18Macys Pick to the Last Unit ProgramThe ResultsMacys RFID JourneyAge of Amazon:Challenges & OpportunitiesTechnology Will Continue to Disrupt the StoreThank You

TYCO RETAIL SOLUTIONS. ID-ea event, The Magic of … · Leveraging RFID for ... based on bad data...

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