Solutions Provide Real-Time Inventory Visibility and Shrink Management for Retail Apparel Supply Chain

Checkpoint Systems, the provider of radio frequency-based product identification and shrink management solutions for retailers and consumer package goods manufacturers, presented several new EPC/RFID applications for use in the retail-apparel supply chain at the Frontline show in Chicago. These included new item-level applications. Checkpoint says that analysts and researchers including Accenture, AMR Research, A.T. Kearney and The MIT Auto-ID Center have published studies and business models that show item-level EPC/RFID tagging can provide a return on investment today for select product categories, including apparel. Retail and CPG industry leaders are actively testing that business case now.
The new applications developed by Checkpoint leverage all the ways RFID can be used in the apparel supply chain and include:

• A Smart Dock Portal for identifying and receiving products into inventory automatically at the distribution center.  


• An inventory management function for identifying inventory real-time in the stockroom with a portable reader.  


• Smart shelves/smart zones monitor merchandise throughout the store and provide complete inventory visibility, notifying personnel when inventory replenishment is needed.  


• A smart merchandising solution for changing rooms where shoppers can view accessory items on screen (providing cross-selling opportunities for retailers) and provide information, for example, about sizes and colors of merchandise in stock.  


• A smart point-of-sale for speeding the check-out process while capturing critical data, including identification of each item for better, more complete transaction histories.  


• An anti-theft function. Only items identified as paid can have their hard tags removed and be carried through antennas without setting off an alarm. 

‘These RFID applications are prototype designs to demonstrate how the technology will fulfill a customers need for greater information and stock availability while at the same time protecting items from both shoppers and staff theft,’ said David Donnan, president, North America of Checkpoint Systems. ‘The fast-paced business of retailing is getting more complex. Retailers are struggling for consistent profitability and many are searching for a more strategic approach to the challenge. And that is where we believe EPC/RFID technology can play a significant role.’
Checkpoint Systems RFID solutions are designed for the retail supply chain. Field tests are currently being conducted in North America and Europe. The METRO Group, one of Europes largest retailers, is testing several retail applications at its Store of the Future, in Rheinberg, Germany.