RFID: Taking the Mystery Out Of Retail Item Level Tagging

RFID over the past couple of years has made great progress in such areas as Department of Defense programs for weapon tagging, container shipment, and Logistics Management from food to ammunition. The knowledge the industry has gained in the past three years through initiatives like Wal-Mart’s RFID program has provided executives the real-world information they need to make informed decisions and provides a baseline for where RFID provides the true Return on Value (ROV) to Retail organizations.

The Common Denominator in Deploying Technology

RFID technology is no different than any other technology: The process of definition and design is key. Like any technology project, if the entire business process is not considered as part of the solution the gains promised may not be achieved. This is especially true for retailers as RFID tagging solutions typically impact the entire supply chain, from the manufacturer to the client to the end customer, and most importantly it affects the entire business process and culture of the organization. To realize the promised gains the business process outputs, Key Performance Indicators (KPIs), reporting mechanisms, processes and tools must be integral components of any proposed solution.

Digging Through the Hype to Find the Bottom Line

Any new technology challenges you to dig through the hype and claims of the vendors to determine the true cost to deploy and operate, and what the actual Return on Value (ROV) will be. In fact the executives responsible for meeting corporate financial targets must approve the project, or you’ll never even get started. For retailers ROV is directly tied to the following factors:

• Decreased shrinkage and loss prevention
• Increased revenue through out-of-stock reductions
• Increased client satisfaction
• Decreased manual inventory management

The Need for a Solution Provider

The current RFID technology market is still very fragmented with multiple suppliers providing individual components required to deliver a comprehensive solution. Today the Retailer must cobble together a solution of hardware and software components from tags, readers, antennas, and middleware to connect to their ERP, POS, and/or Item Inventory system(s). Mastering the disciplines required to integrate these disparate components can be cost and time prohibitive. For that reason retailers should look to seasoned solutions providers who have deep systems integration knowledge and experience.

Choosing a Solution Provider

While many retailers are cautious about the value of RFID the most critical decisions retailers must make is who their solution provider partner will be. There are several key questions to ask the Solution Provider:

1. Does this solution increase revenue, and if so when?
2. If yes, then how do we control the deployment, change business processes, and achieve a successful project without new change orders or contract amendments?
3. Where do my business processes need to change and how?
4. What percentage (%) of the proposed solution is Commercial Off-The Shelf (COTS) based?
5. What is the business tools provided to the organizational business units to make immediate informed decisions, without constant manual intervention?
6. Are there products available or on the horizon that can reduce the number of components?
7. What is the Total Cost of Ownership?
8. If performing a proof of concept:
1. What is the decision criterion to continue with the project?
2. What should you keep and what should you throw away?
9. What are the associated Risks and what are the exit strategies if necessary?

Conclusion Section – Why Stealth

Have you ever been influenced by companies touting the hottest new technology, only to find out later that it may not have been necessary for your particular situation? Stealth Network Communications approach is more about evaluating how your business works, screening technology developments and alternatives, and offering a range of options from which to choose. Committed to a customer-centric methodology that focuses on the root cause of business challenges results in measurable performance and customer satisfaction. In addition, the client receives “peace of mind” that the right technology and solution, among a variety of existing and new options, is tailored to fit their requirements. Because Stealth listens carefully to understand the customer’s business decisions and needs, we generate an outcome of total quality and customer satisfaction.

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