The need to replenish items on the sales floor the instant they are sold required American Apparel, the Los Angeles-based apparel manufacturer and cult status retailer, to reinvent its inventory management process. In 2007, the company embarked on RFID pilots at a number of its New York City retail locations using Avery Dennison inlays and components from Motorola and Xterprise.
The result: American Apparel RFID inventory management pilot stores have achieved the Holy Grail of retail—99+% on-floor availability of all the items stocked. In addition, work-hours required for restocking have been reduced, efficiencies in back room stock replenishment have increased and customer service has improved.
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