Myer, Australia’s largest department store, identified a key area of opportunity around Apple merchandise in its flagship store in Melbourne. As such it was decided to begin testing the benefits of RFID with a focus on two areas, inventory accuracy and stock take labour costs, with an aim to reduce stock loss and the cost of stock take labour.
During the financial year of 2016/17, Myer conducted six cycle stock takes and daily manual counts of Apple inventory in their Melbourne City store, with a significant labour cost associated with these activities. In addition to this cost, further losses were incurred due to shrinkage caused by a combination of theft and inadequate inventory control.
How Checkpoint Systems responded
Myer sought the assistance of Checkpoint Systems, an end-to-end solutions provider in loss prevention and merchandise visibility, to implement an RFID proof of concept in 2017. Checkpoint Systems, a division of CCL Industries, utilises GS1 standards which integrated well within Myer’s process.
The pilot involved applying RFID labels to all Apple merchandise in the Melbourne store once it arrived securely from the distribution center and had been checked off against the
manifest (ruling out any inventory inaccuracies from the supply chain).
Each item was then encoded by scanning the Universal Product Code (UPC) barcode followed by the RFID Barcode to ensure the stock was uniquely encoded into the Myer inventory. The merchandise was then placed in a secure reserve ready for selling. Once an item was sold and moved from the reserve, it was then retired from the inventory system using an auto retirement RFID reader, which communicates with the Checkpoint Systems software.
Stock take scans were conducted in the secure reserves every morning and at close of business daily. When discrepancies were identified, a manual reconciliation between Checkpoint and Myer data was performed.
Checkpoint Systems, a division of CCL Industries, addresses two critical issues for its customers: Improving Profitability and Improving Consumer experience. With consumer demands accelerating at an extraordinary rate driven by technology, Checkpoint recognizes the challenges faced by its customers in the rapidly evolving retail market. We deliver intelligent solutions – bringing clarity and efficiency into the retail environment anytime, anywhere. Through a unique offering of software, hardware, labels, tags and connected cloud based solutions, Checkpoint optimizes operational efficiencies through analysis of real time data captured throughout the Supply Chain and in store then translating this to clear concise actions and tasks.
We provide end-to-end solutions enabling retailers to achieve accurate real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft, thus improving merchandise availability and the shopper’s experience. Checkpoint’s solutions are built upon 48 years of radio frequency technology expertise, innovative high-theft and loss-prevention solutions, market-leading RFID hardware, RFID software, and comprehensive labeling capabilities, to brand, secure and track merchandise from source to shelf. Checkpoint’s customers benefit from increased sales and profits by implementing merchandise availability solutions, to ensure the right merchandise is available at the right place and time when consumers are ready to buy. Checkpoint operates in every major geographic market and employs 4,500 people worldwide.