Brazilian retailer, memove, was in need of an RFID solution that would create a unique shopping experience for customers while optimizing store operations.
The RFID solutions delivers:
- > 50% drop in operating costs
- 300% faster receiving process
- Near 100% accuracy
- >Reduced inventory counting time
- Increased inventory visibility
- 60% faster check-out times
VGB wanted their memove stores to improve on some of the challenges they were experiencing at their Siberian and Crawford stores. The goals of the memove chain were to have an efficient way to maintain inventory visibility, an improved customer experience, and an effective Electronic Article Surveillance (EAS) solution. To have a complete, cutting-edge store experience, memove sought to eliminate the standard check-out counters in favor of self-checkout kiosks spread throughout the store. memove chose to deploy a complete ‘Source to Floor’ RFID solution from RFsense using technology from Impinj. RFsense, a specialist in complete end-to-end RFID solutions for the Brazilian market, provides engineering and system integration services, and specialized middleware software for the project.
How It Works
RFsense’s RFID system tracks products from the point of manufacturing, to VGB’s distribution center, to memove’s retail stores through to the point of sale (POS). memove’s clothing manufacturers in Brazil, China and other locations are tagging apparel items at the source of manufacturing by sewing RFID tags into garments’ labels. Tags contain an Impinj Monza chip which is encoded with a Serialized Global Trade Item Number (SGTIN) to uniquely identify each garment. The garments are then sent to the DC.
At the DC, Impinj Speedway xPortal readers and a conveyor belt equipped with an Impinj Speedway Revolution reader power three read points. The readers register when items are received, when they are placed in storage and when they are shipped to a store. The technology gives memove visibility into a garment’s location at all times.
At retail stores, RFID improves inventory management for more than 40,000 items per location. A Speedway xPortal reader registers items as they arrive, allowing the store’s inventory to be immediately updated. A trolley from RFsense equipped with a Speedway Revolution reader acts as a portable inventory-taking machine. Stock counts can be updated by rolling the trolley through the back room or the sales floor.
RFID is also used at the point of sale and for EAS. Shoppers can complete purchases at RFID-enabled self-checkout kiosks throughout the store. Customers place their items in a basket and a Speedway Revolution reader and an Impinj Brickyard antenna read each garment’s SGTIN and forward the information to memove’s POS software which calculates the purchase price. When the transaction is complete, the reader erases the RFID chip’s unique ID number, rendering the tag unreadable and the sold items are removed from the store’s inventory records. If a shopper were to leave the store with an unpurchased item, Speedway xPortal readers in the doorway would register the garment’s RFID tag and sound an alarm. After an item has been purchased, since the chip’s ID number has been erased, readers cannot register the tags so no alarm is sounded.
VGB and memove are reaping benefits throughout the supply chain from RFsense’s RFID solution and hardware from Impinj. VGB saw a 50% decrease in operating costs during memove’s initial months. The receiving process at the DC and the stores is 300% faster than before the RFID system, with an accuracy of nearly 100%. While other Valdac stores were doing annual inventory counts, memove is able to take inventory weekly and the time dedicated to stock counts has been reduced from several days to about an hour. VGB found the RFID-enabled check-out process to be on average 60% faster than other systems, while also freeing sales associates to focus on customers.
Due to the technology’s success at memove stores, VGB plans to deploy RFID at its Siberian and Crawford stores starting at the end of 2012.
memove is the newest fashion brand under the Brazilian retail group Valdac Global Brands (VGB), owner of the popular Siberian and Crawford brands. VGB was founded in 1981 and operates over 120 retail stores in Brazil. memove’s flagship store opened in October 2011 in São Paulo, Brazil with a unique, high-tech in-store experience to target modern, fashion-conscious young adults. The store is equipped with mounted flat-screen TVs which play music videos and sporting games. Shoppers can also browse the internet on store-provided Apple iPads. VGB plans to open 54 memove stores throughout Brazil by 2017.
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