Luxury children’s clothing retailer Coccinelle is the latest retail brand to take advantage of the inventory accuracy provided by RFID to use their brick and mortar stores as fulfillment centers for online orders.
Coccinelle has deployed RFID at all six of its stores in the Netherlands, and has already witnessed a 60 percent decrease in online order cancellations. Prior to rolling out an RFID system from Nedap, poor inventory visibility led to frequent cancellations of online orders when customers became frustrated that items were not available.
The increased inventory accuracy at the store level and within Coccinelle’s distribution center has boosted sales and had a positive impact on employee productivity, since store associates have greater insight into which products are available and where those products are.
“Our goal was to reduce out-of-stocks in our web shop without having to make concessions in product assortment quantities,” says Marc Bakker, Coccinelle’s Managing Director. “After an intensive period, we have arrived at a level of extreme inventory accuracy in the physical shops, and this results in considerably fewer cancellations in our web shop.”
Nedap supplies the RFID point-of-sale (POS) and the hand-held readers required for the solution, along with the associated iOS app. For automatic processing of inventory transactions, Nedap’s RFID solution is linked to Softwear’s ERP and cash register system.
All products are tagged with RFID labels at the Coccinelle distribution center so that all shipped items can be registered using !D Hand, an RFID hand-held reader from Nedap. This information is then processed automatically in the ERP system.
At the cash register, the RFID labels of items sold are read by an RFID POS reader that is also linked to the cash register system. In addition, store employees quickly take inventory twice each week using !D Hand. The results of these counts are processed automatically in the ERP system.
Because of the 99.9 percent inventory accuracy of goods received and the store counts, any differences between the administrative inventory and the actual inventory can be traced and corrected extremely quickly.
“We’ve also taken significant steps forward in terms of efficiency in our DC because the RFID process has enabled us to put a stop to a number of actions and a large number of transactions can now be executed more quickly,” says Bakker.
Bakker says that his firm will focus on expanding functionalities that further optimise processes, as well as conducting further research about the advantages that RFID offers from a marketing standpoint.
“We’d no longer consider working without RFID,” says Bakker.