Articles

Retail Holiday Global Forecast: RFID Addresses Profitability Strains

SPONSORED CONTENT: The recently published 2016 Retail Holiday Season Global Forecast, underwritten by an independent grant from Checkpoint Systems, provides an analytical view of business risks that major retailers face during this holiday season in 13 global markets.

Michael Guiher, Sr. Director, Global Product Management, Checkpoint Systems

Overall, research shows that global retailers will experience both the heaviest sales volumes and the weakest performances specific to margin rate during this holiday season. Strains on profitability manifest now largely because of increased shrink/theft from external, primarily via shoplifting/organized retail crime (ORC) and internal sources, primarily via sales reducing activities.

According to the report, some global recommendations to address these issues include the following:

• Maintain operational execution standards, while being vigilant regarding financial performance expectations.
• Update planning and financials to properly account for advanced deliveries of seasonal products, since the seasonal build starts earlier now than in the past. Enhance oversight to seasonal/holiday merchandise to ensure financial goals are achieved while cost center controls are contained.
• Properly train seasonal help to manage the increasing complexities of the season.
• Employ technology to stabilize inventory loss and ensure on-shelf availability while enhancing product protection countermeasures.

This last point is where RFID can play a critical role. Because retailers are bringing in holiday merchandise earlier than ever, retailers are at greater risk for asset burn. As such they must do a better job of effectively managing inventory to avoid serious financial losses.

For most retailers, wholesalers and distributors, inventory and the space to store it is the largest single cost of doing business. From purely a cost viewpoint, less inventory means lower costs. At the same time, unproductive or “dead” inventory as well as insufficient inventory leads to out of stocks, lost sales and unhappy customers. So balancing these two factors is critical to profitability and growth, particularly in omni-channel environments.

According to report, achieving this balance is not easy. This specific facet of the business requires process disciplines, systemic controls at the three core areas of the business (receiving, center store and POS) and strongly structured protocols/procedures in order to optimize this most significant financial asset of the business. The study says the use of technologies such as RFID to track merchandise as it moves throughout the supply chain to distribution centers, retail backrooms and store shelves is one approach that is being used to successfully address this issue.

Additionally, retailers are increasingly leveraging RFID for its loss prevention (LP) benefits. They are investigating RFID for numerous reasons, including design considerations, store expansion plans, understanding and addressing patterns of theft and increasing the value of RFID inventory management initiatives.

Consider the following the following RFID LP applications:

Open Entrances: Mall stores often have open entrances, with merchandising close to the exit door. For example, some mall stores and luxury stores want open-entrance LP solutions that are seamlessly integrated into the store design, to enhance the shopping environment. RFID-based EAS provides format and usage flexibility.

Additional Insights: Beyond informing retailers that a theft event may have occurred, RFID can provide important information about quantity, value and description of the inventory, enabling restocking to ensure shelf availability.

New Stores and Remodels: RFID-based EAS can serve as a “future proof” technology that can accommodate new formats and information sharing down the road.

Organized Retail Crime: RFID is a new tool in the fight against ORC, providing differentiated alarms for high volumes of merchandise and high-value items leaving the exit door, as well as analysis to help prevent future incidents.

Inventory Management: When a retailer uses RFID for both inventory management and LP, the same tags can be used for both, delivering significant cost savings and labor savings for the organization.

For shoplifting and ORC, using RFID-based detection and prevention can provide the following benefits:
• Item-level detail on what was stolen, enabling re-stocking to improve shelf availability.
• Differentiated alarms – by quantity, value of items stolen.
• Protection for multiple merchandising formats including mall stores, luxury stores, etc.
• Automated, chain-wide alerts for ORC.
• Ability to analyze patterns of theft over time and respond.

RFID address internal theft in the following ways:
• Extending EAS to the dressing room, back room and other “pre-POS” areas of the store.
• Improved inventory visibility throughout the store.
• Ability to analyze patterns of theft over time and respond.

The 99-page 2016 Retail Holiday Season Global Forecast can be downloaded here.

EmailFacebookTwitterShare

windows 7 key generator

windows 7 key generator

windows 7 activation crack

windows7 activation crack

free winrar

free winrar

free winzip

free winzip

winzip activation code

winzip activation code

winzip freeware

winzip freeware

windows 7 product key

windows 7 product key

windows 7 ultimate product key

windows 7 ultimate product key

winrar free

winrar free

winzip free download

winzip free download

winzip free download full version

winzip free download full version

windows xp product key

windows xp product key

free winrar download

free winrar download

windows 7 crack

windows 7 crack

winzip registration code

winzip registration code

winrar free download

winrar free download

download winrar free

download winrar free

winrar download free

winrar download free