 | Friday, November 16, 2007
Issue 727 | | Will Smith, Editor |  |
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Editor's Note: Today's top story is the item-level tagging program by Finnish apparel designer and manufacturer NP Collection. The company expects full ROI in a mere six months, and plans a major expansion of the deployment in 2008.
ABI Research predicts that the worldwide RFID market will reach $8.4 billion in 2012, growing from roughly $3.8 billion this year. The five-year growth represents a respectable 21 percent compounded annual growth rate (CAGR).
Note the new classified listing below for the Global RFID ROI 2008 event taking place in Munich, Germany, on the 29th and 30th of January.
Lastly, a publishing note: RFID Update won't be published next week due to the US Thanksgiving holiday. A safe and happy holiday to those of you in the States. |
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Finnish Retailer Gets Quick ROI on Item-Level RFID
Finnish apparel designer and manufacturer NP Collection says it expects full ROI in less than six months from a pilot program in which Gen2 tags were placed on 80,000 individual garments. The project has been so successful that the company plans to more than triple the amount of garments tagged in 2008, add new in-store applications, and expand collaboration with suppliers and logistics providers.
"Increase in turnover by reduction of out-of-stock situations is the major contributor to the business case. There are not any actual measurements yet, but we could assume that every fourth event in a store might end up as an out-of-stock case," NP Collection managing director Risto Rosendahl told RFID Update.
In an announcement released by tag supplier UPM Raflatac, Rosendahl said: "Thanks to our state-of-the-art RFID solution, the product handling rate has improved tenfold and human error has been eliminated. We expect to reach ROI in six months."
Garments are tagged at the point of manufacture in Europe and read each time they are received and shipped from distribution centers. Product tags are currently read in six company-owned stores and in an NP Collection distribution center. The company expects to tag 250,000 items in 2008, and to possibly extend source tagging to products manufactured in China.
NP Collection merchandise is sold in about 500 stores in Scandinavia, Europe, and Russia, and the company is working with retailers to install RFID infrastructure to support expanded tracking plus new merchandising, smart shelf, and possibly security applications. It is also expanding the system so its suppliers and logistics provider Itella make more use of RFID tag data and the advance ship notices (ASNs) that the system automatically generates.
"The apparel supply chain involves a lot of slow manual processes," said Rosendahl. "Stock-level inventory management and improved customer service contribute to the ROI. Improved processes [have] less mistakes, and this means a really huge cost savings in apparel logistics."
Finnish firms RDN, Salpomec, and Vilant Systems provided integration services. The readers came from ADT, and SML converted Raflatac inlays into smart labels.
NP Collection began tagging garments in September, the same month European retailer METRO Group announced an item-level tracking program that was hailed as the first of its kind (see METRO Unveils Warehouse-to-Checkout RFID System and Why METRO's Item-Level RFID Deployment Matters).
Apparel tracking is becoming increasingly fashionable in Europe. European fashion houses Lemmi Fashion and Throttleman each previously disclosed RFID programs (see Kids Clothes Firm Outgrows HF, Puts on Gen2 RFID and TAGSYS Announces Two Apparel RFID Deployments, respectively).
Dillard's was the last US retailer to announce an item-level garment tracking program, but provided few details (see Dillard's Announces Item-Level RFID Pilot).
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| Upcoming Events | Global RFID ROI 2008, 29th - 30th January, Munich, Germany
Taking place 29th and 30th January, Global RFID ROI 2008 is bringing together the leading RFID practitioners from a broad cross section of industries that will give you the opportunity of discovering the real ROI behind RFID implementation. View the full programme at http://www.rfid-roi.com/downloadpdfx2.asp and to register, please call 0044 207 202 7558. | Asset Management Conference & Expo, Jan 22-23, Atlanta, GA
How much control do you have over your assets? Failure to manage assets can result in underuse, misplaced items, poor maintenance, increased operational costs, legal liabilities, and financial reporting errors. Attend the Expo and learn to increase asset visibility & life-cycle management, implement process & operational improvement, and explore the newest technologies. www.AssetExpo.com. | Active RFID and RTLS - Dallas, Texas - December 5-6, 2007
Attend the only event dedicated to Active RFID and RTLS; Dallas, Texas on December 5-6, 2007. All the technologies and main Active RFID markets are covered from ultra wide band to ubiquitous sensor networks, from postal applications to Active RFID in hospitals. Visit www.IDTechEx.com/active to find out more and register! | | | Products & Services | Peel - Stick - Ship(TM): SimplyRFID Pre-Programmed Tags
Military-grade, Class 1 Generation 2 RFID Tags pre-programmed to DoD 252.211-7006 specifications shipped same day for less than $1 each. Find out why over 1,000 DoD (Department of Defense) suppliers choose SimplyRFID for their RFID needs. Visit us at www.SimplyRFID.com for no hassle RFID solutions. | | | RTLS & Active RFID | Locate it now. How? Ekahau. That's how!
Ekahau RTLS (Real-Time Location System) automatically tracks assets and people via your existing Wi-Fi network. Control costs and improve asset management with Ekahau. For more information, visit us at www.ekahau.com. | | | Employment | RFID Recruiters - 100% Focused on RFID Recruiting
Whether your company is looking for the best RFID talent or you have the best RFID talent and are looking for the best RFID employer, RFID Recruiters offers the most focused approach to your objective. To learn how the RFID industry and the RFID job market are evolving, visit www.rfidrecruiters.com | | | Research & Whitepapers | How RFID Can Decrease Manufacturing Errors
Specialized RFID tags that are optimized for use on or around metal are an effective and viable alternative to bar codes for error proofing applications in manufacturing. Learn the financial impact of errors and recalls and how RFID can be used for error proofing and other manufacturing processes. Get the full report now. | RFID Marketing Strategies Report from RFID Update
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