The Warehouse Limited And IBM Investigate RFID To Improve Stock Availability For Customers
The Warehouse Group Limited, one of New Zealand's largest general merchandise and apparel retailers, has selected IBM as its lead partner to undertake a proof of concept to explore how Radio Frequency Identification (RFID) can be used to improve stock availability for customers through enhancing its supply chain processes, particularly in-store stock management. This is believed to be the first significant retailer-led initiative of its kind in Australasia.
Alien Technology Corporation, a leading provider of RFID solutions, is providing RFID readers & tags and initial field applications engineering support. Saito Group will provide RFID printers and RFID labels.
In August 2004 The Warehouse (TWL) established a cross functional RFID team led by the Information Services department. "During late 2004 and early 2005 we built an extensive understanding of RFID theory, RFID in retail, opportunities within TWL and the current capability of the Australasian market to support RFID programmes of work," says The Warehouse Chief Information Officer Owen McCall.
In April 2005, The Warehouse RFID team undertook a 'check and confirm' trip in North America and Europe. The team met with a variety of hardware vendors, service providers and leading global retailers in both the US and Europe.
"We believe RFID in retail is real. Standards and the cost curve are driving the reality closer to wider consumption and the leaders are learning by doing," says Mr McCall. "We have evaluated a number of potential uses for RFID across our organisation and have focused on in-store stock management, which is the application we believe will provide the greatest benefit to our customers at this point in time."
The Warehouse selected IBM as the lead partner for the proof of concept due to IBM's strong global commitment to RFID and a strong local presence. The proof of concept will utilise IBM's expertise in RFID consulting along with IBM software and hardware.
IBM NZ Wireless Practice Leader Brent Menzies believes that The Warehouse's proposed Retail RFID model is the first and most progressive of its kind in Australasia. "We are optimistic that The Warehouse will see a significant return on their investment in RFID through being able to offer improved service to its customers and drive improvements to supply chain efficiency and capability."
Alien Technology Corporation was chosen due to its industry leadership position and ability to support New Zealand standards. Andrew Berger, VP International of Alien Technology commented "we have been working closely with The Warehouse, IBM and Saito to deliver promising results from the proof of concept activity. This has reinforced our belief that RFID can enable significant service improvements for customers of The Warehouse."
If successful, the proof of concept stage will be followed by a pilot in 2006 to further refine how and where RFID can be used by The Warehouse to improve supply chain execution and improve customer service levels.
The Warehouse team was led by Alan Mayo, Group IT Architect, and Caleb Nicolson, Supply Chain Programme Manager.
About The Warehouse
The Warehouse Group Limited owns three retail businesses (The Warehouse New
Zealand, Warehouse Stationery, and The Warehouse Australia). The Warehouse
New Zealand Limited is one of New Zealand's largest general merchandise and
apparel retailers. The first store opened in 1982 on Auckland's North Shore,
and since then has grown to 85 stores across the country. In 1991 the first
Warehouse Stationery store was opened, and in 2000 the company began
expanding into the Australian market. For the 2005 financial year, The
Warehouse Group had sales of $NZ2.224 billion and a full year net operating
profit after tax of $71.9m.
For more information about The Warehouse, please visit www.thewarehouse.co.nz
About IBM's RFID Services
IBM offers comprehensive services for the deployment of RFID including the
formulation of business plans, development of systems, implementation of
trial plans, and full-scale introduction and deployment of RFID solutions.
IBM's RFID consulting and implementation practices are part of IBM Global
Services, the world's largest information technology services provider.
IBM is a leading provider of RFID services. Its current RFID projects
include several with retailers and consumer packaged goods companies. A
partner in the METRO Group's Extra Future Store initiative in Germany, IBM
implemented the RFID technology showcased within the store. Currently IBM is
partnering with the Metro Group, the fifth largest retailer in the world, to
implement RFID across the retailer's entire supply chain, the first of its
kind globally.
About IBM
IBM is the world's largest information technology and business solutions
company with 80 years of leadership in helping businesses innovate. Drawing
on resources from across IBM and key IBM Business Partners, IBM New Zealand
offers a wide range of services, solutions and technologies that enable
customers, large and small, to transform into on demand enterprises. In
2005 IBM is celebrating 50 years in New Zealand. For more information about
IBM, please visit www.ibm.com/nz.
About Alien Technology Corporation
Alien Technology Corporation is a leading provider of Radio Frequency
Identification (RFID) products and technologies for global customers in
retail, defense, healthcare, manufacturing, transportation and other
industries. Alien's Ultra-High Frequency (UHF) and Battery Assisted Passive
(BAP) RFID products and technologies are used for such high-value
applications as supply chain management, brand authentication, cold chain
management, asset tracking and more. For more information on Alien
Technology visit www.alientechnology.com
About Saito Group
Saito Group, through its specialised Smart Label Division, offers RFID
solutions centred around RFID Printing Bureau services, RFID enabled
printers for In-house use, RFID reading devices, RFID encoded tags at
manufacturing source via its Shore to Shore network, plus full ongoing
support for all solutions implemented. With combined international RFID
expertise from Saito Groups key business partner Sato, we can access a
wealth of international RFID experience and equipment to ensure effective
client solutions. Saito Group is proud to partner with The Warehouse in
their RFID project. For more information about Saito Group, please visit
www.saito.co.nz