After a successful pilot at two stores, Moods of Norway is deploying RFID to an additional 14 brand stores. The fast-growing Scandinavian fashion chain improved in-store stock accuracy to more than 98 percent during the four-week trial.
The additional stores will be up and running by the end of the year, and the retailer has also decided to start source tagging at the point of production. Starting with the upcoming fall and winter collections, all suits, shirts and pants will arrive with RFID tags, resulting in cost savings at the distribution center and faster DC-to-store movement for items.
Hans Petter Hübert, supply chain manager at Moods of Norway, says that the main goal of the deployment is higher stock accuracy, streamlined internal processes and an improved in-store replenishment process, resulting in higher customer service levels. Because 70 percent of revenue is generated from replenished items, RFID is crucial to Moods of Norway’s selling strategy.
“Having a high accuracy on inventory data is crucial to ensure product availability,” says Hübert. “It is not enough to know that the products are in the store. We have to be sure they are on the shelf as well; RFID provides the necessary foundation to give the store employees the tools to achieve this. Another positive effect we’ve seen in our pilot is that the store as a whole performs better. It seems like RFID has a positive impact on the general performance.”
Moods of Norway is using an RFID solution provided by Nedap, in close cooperation with Infratek, Nedap’s sales and installation partner in Scandinavia. Moods of Norway launched the solution at the start of 2014. Within four weeks the chain tracked a significant improvement for in-store stock accuracy, improving to more than 98 percent for selected product categories. Additionally, the RFID-tagged products performed significantly better in the pilot stores than in the other stores.
Moods of Norway attached RFID tags to the products in the distribution center. Retail associates took frequent inventory in the stores by using the !D Hand, Nedap’s advanced RFID handheld reader. All differences between the ERP stock and the actual stock can now be corrected, while out-of-stocks and overstocks are prevented.
“With RFID, retailers gain a deep insight into their real stock levels,” says Elles te Boome-Harbers, sales business developer at Nedap. “To achieve this, we are currently working with the team at Moods of Norway to help them fully benefit from RFID. In short, we want to enable Moods of Norway to sell more with less stock and thereby accelerate their growth.”