Articles
Case Study: American Apparel Finds The Right Fit With Motorola RFID
October 30, 2008
•Case Study: American Apparel Finds The Right Fit With Motorola RFID
By Motorola
American Apparel retail stores operate boutique-style, stocking only one item of each style, color and size on the floor at any time. Inventory turnover is quick and traffic between the stock room and the sales floor is high, particularly during busy hours. With more than 26,000 SKU items to manage, maintaining accurate inventory counts and a 100% stock mix on the floor consumed significant time and labor. However, both were considered critical to the chain's success, since inventory errors and stocking delays translated directly into lost sales.
The potential benefits of reducing labor and increasing sales from deploying an item-level RFID operation at American Apparel were clear. And given the control it has over its manufacturing, distribution and retail operations, American Apparel's plan was not only to reap the benefits of RFID on the retail floor, but throughout its closed loop supply chain. The company was eager to test the current capabilities of RFID for accuracy, performance and adaptability to American Apparel's business processes, with four clear goals for process improvements
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