RFID System: Fujitsu Installation Of AbsoluteSKY RFID System Is Successful At STAPLES Business Depot

Fujitsu Transaction Solutions Inc. announced recently that the three-month installation of AbsoluteSKY's Radio Frequency Identification (RFID)-based intelliTRACKER product suite in STAPLES Business Depot's first store was successful.

STAPLES Business Depot, Canada's largest supplier of office supplies, business machines, office furniture and business services, worked with Fujitsu to install AbsoluteSKY's real-time, long range inventory tracking system in a 37,000 sq. ft. STAPLES Business Depot store in May 2007 as a test pilot. To date, roughly 1,500 SKUs have been tagged, and the system has been dynamically reporting inventory status and changes on a minute-to-minute basis as merchandise travels from receiving to store shelves, across retailer-defined zones and through the point-of-sale process. The results achieved illustrate a fully automated and highly accurate business system for item-level inventory tracking.

Key benefits achieved include:

• 100 percent read rate with no system issues
• 21 percent reduction in out-of-stock merchandise
• Increased comparative sales for the tagged inventory categories
• Increased gross margin on tagged inventory classes
• Low cost per use of approximately eight cents (intelliTRACKER tags are re-useable over a 5-year lifespan)
• Significant return on investment (ROI)

"The clear and measurable gains we experienced with intelliTRACKER have exceeded our expectations," said Joe Soares, director, process engineering at STAPLES Business Depot. "The system was easy to install and has consistently delivered inventory visibility with 100 percent accuracy since we went live."

The intelliTRACKER system eliminates the need for STAPLES to conduct physical cycle counts on the RFID tagged inventory. In an audit, the intelliTRACKER system proved to be more accurate than physical counts, and shrinkage for the tagged inventory was completely eradicated. The system has quickly balanced STAPLES' master inventory system, and has provided a critical tool for locating merchandise, managing returns, feeding the replenishment system and preventing out-of-stock situations.

The installation and tagging process was quick and efficient and the system operation and user interaction was intuitive and easy to learn. Establishing RFID zones in the store has made it easy for employees to locate merchandise and set business rules and conditions relative to particular zones. The browser-based intelliTRACKER application enables STAPLES' staff to interact with the system directly, remotely or via mobile devices (laptop, PDA, etc).

"The flawless execution of item-level RFID tags at STAPLES Business Depot is a profound achievement for this emerging technology," said Peter Sciberras, general manager and vice president of sales, Canada, Fujitsu Transaction Solutions. "In the hands of an innovator like STAPLES, this new technology becomes an incredible tool for increasing efficiency and improving the retail shopping experience."

"Our intelliTRACKER system is now performing the tasks and delivering the sizeable benefits that everyone had hoped for when RFID technology first made its big splash in the retail market a few years ago," stated John Frabasile, president and CEO of AbsoluteSKY Solutions.

Fujitsu and AbsoluteSKY formed their strategic relationship in 2006 to respond to the growing need for item-level inventory tracking in the retail industry. Delivering accurate, long-range tracking in real-time, intelliTRACKER provides an extensive range of customer benefits that includes: increased inventory turns, virtual elimination of missed sales as a result of out-of-stocks and extensive control over loss prevention.

About STAPLES Business Depot
Founded in Toronto in 1991, The Business Depot Ltd., is Canada's largest supplier of office supplies, business machines, office furniture and business services for the small business and home office customer. The company is an everyday low price retailer. The chain operates stores in all provinces across Canada under the banners STAPLES Business Depot and BUREAU EN GROS. The company has over 13,500 employees serving customers through more than 280 office superstores, catalogue, and e-commerce. STAPLES Business Depot/BUREAU EN GROS is committed to making shopping easy by offering customers three ways to shop - online, by catalogue and in-store. More information is available at www.staples.ca.

About Staples
Staples, Inc. invented the office superstore concept in 1986 and today is the world's largest office products company. With 74,000 talented associates, the company is committed to making it easy to buy a wide range of office products, including supplies, technology, furniture, and business services. With 2006 sales of $18.2B, Staples serves consumers and businesses ranging from home-based businesses to Fortune 500 companies in 22 countries throughout North and South America, Europe and Asia. Headquartered outside of Boston, Staples operates more than 1,900 office superstores and also serves its customers through mail order catalog, e-commerce and contract businesses. More information is available at www.staples.com.

About AbsoluteSKY, Inc. AbsoluteSKY, Inc. specializes in the design, development and implementation of Radio Frequency IDentification (RFID) technology that provides real-time item-level inventory tracking for retail customers. Based in Montreal, Canada, the Company's business model combines strategic, creative and technical skills to deliver solutions that help its clients achieve their business objectives through the use of AbsoluteSKY's breakthrough technology and extensive knowledge of their business operations. For more information visit: www.absoluteSKY.ca.

About Fujitsu Transaction Solutions
Fujitsu Transaction Solutions Inc., a wholly owned subsidiary of Fujitsu Limited , collaborates with retailing companies to relentlessly reduce their costs and facilitate consumer interactions that improve their profitability. Fujitsu's Pervasive RetailingT approach enables companies to minimize the time; cost and risk of creating interoperability between disparate applications and devices that support a multitude of consumer touch points. Fujitsu's offering includes solution software, point-of-sale store technology, U-Scan self-checkout systems, self-ordering systems and multi-vendor lifecycle services. Customers include Canadian Tire, Chevron Corporation, Hallmark, H-E-B, Kroger, Loblaws, Nordstrom, Payless ShoeSource, Regal Cinema, Ross Dress for Less, Staples, Stop & Shop and The TJX Companies, among others. Web site: us.fujitsu.com/retailing.

SOURCE: Fujitsu Transaction Solutions Inc.