Italian women’s fashion retailer Sandro Ferrone is deploying RFID throughout its supply chain, and at more than 200 stores worldwide after a successful pilot.
By tagging the more than two million items it sells each year, Sandro Ferrone gains numerous benefits. Including higher inventory accuracy and increased productivity. The company plans to extend the solution to a new distribution center being built in Bologna.
Improvements through RFID Implementation
Prior to RFID, workers scanned barcodes to identify and track items in the warehouse. This was both time consuming and prone to errors. It took about 10 minutes to identify 100 items arriving at the distribution center.
Once RFID was deployed, Sandro Ferrone reduced this time to about seven seconds. While it also improved inventory accuracy to 99 percent, nearly eliminating errors. Allowing a significant improvement in the efficiency of the flow of items throughout the DC.
RFID also improved order preparation and reduced labor costs. According to Sandro Ferrone marketing manager Danilo Athanasius, the automated RFID system reduces the time it takes to pick items from warehouse shelves. As a result, the number of employees required to prepare items for shipping has been reduced from 18 to six.
How The System has Been Implemented
Sandro Ferrone’s suppliers apply EPC Gen2 passive UHF RFID labels from Tageos. They are located on hang tags for each garment or accessory in various product categories, such as dresses, tops and bags.
Prior to being attached to garments, RFID labels are printed and encoded by the supplier. With a unique EPC product identification number, using Toshiba BSX4T RFID printers. The suppliers print information such as barcode, product description, collection identification number on the face of the label. Then encode the RFID identification number into the tag, including information about the supplier and detailed product information. The information encoded into the RFID label is used throughout the manufacturing process and the supply chain.
After being tagged and packed, garments are shipped and tracked to Sandro Ferrone’s distribution center in Roma, Italy.
Arrival at Sandro Ferrone
When products arrive at a DC they are automatically read by RFID readers placed at receiving gates and tag information recorded in the retailer’s database. The software part of the system was developed by Zucchetti. No human checking or intervention is needed at this step. Each RFID gate employs four RFID antennas connected to a FEIG LRU 3500 four-port RFID reader. The system allows for quick and automatic identification of goods as they pass through the gate.
Once the products are identified and stored, operators using Nordic ID Merlin RFID handheld readers can perform fast shelf inventories of the entire distribution center, consequently increasing inventory accuracy to 99 percent.
RFID is also used to prepare orders for packing and shipment to stores. Operators use a handheld reader to locate and pick ordered goods in the DC. The quick identification process allows Sandro Ferrone to significantly improve the speed and efficiency of order preparation.
Ordered products are then packed, ready for shipment, passing through an RFID gate. This helps ensure shipments match the order, recording that the correct products have been shipped to the stores.
Results of implementation
In order to achieve these process and inventory accuracy improvements, Sandro Ferrone put a strong emphasis on training staff. Developing skills in the use of RFID technology and systems. Allowing them to rapidly adopt the technology and achieve positive results.
Item level tagging gives Sandro Ferrone dramatically improved visibility of the items produced and shipped to stores. Along with a significant improvement of supply chain and store replenishment processes.
The data collected provides an intelligent and accurate monitoring of its fast-fashion collections. Matching closely with Sandro Ferrone’s fast-fashion philosophy of having five collections a year instead of two. That strategy, coupled with their weekly-based renewed offers, results in shoppers who maintain high store traffic and who are up to three times more loyal. Benefits of RFID are expected to increase brand loyalty.