NP Collection Benefits RFID in Logistics and Stores. Markus Rosendahl, CEO of Senso Global

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2 NP Collection Benefits RFID in Logistics and Stores Markus Rosendahl, CEO of Senso Global

3 Company Background - Women's clothing brand founded in 1919 in Finland by Aino Rosendahl - Main market areas: Scandinavia, Russia, Netherlands, Belgium and Germany - Manufacturing is outsourced to Eastern Europe and China - 8 stores in Finland and 1 store in St. Petersburg, Russia - Design, marketing and DC operations are located in Finland - 70% of its products exported to 450 retail locations in Europe new SKUs in every 6 months

4 Project Background Key Factors: - Innovative management - Interested in tracking the whole supply chain - Willingness to try out new sales and marketing tools and methods - Interest to gather more information on consumer behavior - Desire to improve customer service - Ambition to make retail store environments more efficient

5 Project Objectives - Improve inventory accuracy - Decrease stock amounts and speed up stock rotation - To provide better customer service and consumer shopping experience - To gain better accuracy of the whole supply chain - To gather more information on consumer behavior - Start using new sales channels and sales tools

6 Project Phases - Project started in September Since the beginning of 2008 all the items of NP has been tagged - In 2008 tag reading at the DC and at the Itella fashion logistics - Senso Retail Environment was launched in the first NP store in October 2008

7 Solutions - Automated shipment receiving - Inventory management with hand held RFID readers - Intelligent dressing spaces and information kiosks - POS with RFID and Anti-Theft System

8 Logistics and Supply Chain - RFID tags printed and encoded in a service bureau - Tags attached to the correct clothes in the point of manufacturing (China and Turkey) - By using Senso Business Management software an Advanced Shipping Notice is created - Itella reads the received garments in Finland with RFID readers and compares it to the ASN - Garments forwarded to the NP Collection DC where read again - The ERP is automatically updated after the reading - Lastly the garments are shipped to NP's own retail stores and other retail location around Europe - Once again the items are read with RFID readers (NP stores)

9 Inventory Management Inventory management with hand held RFID readers in NP Collection's own retail stores - Inventory takes with RFID readers in weekly basis - More accurate and faster Key Benefits: - Less out of stock situation - Less out of shelf - Less lost sales opportunities -> more sales - Increased customer loyalty and satisfaction

10 Intelligent Fitting Rooms and Info Kiosks Intelligent fitting rooms and Information kiosks - Dressing Rooms equipped w/ an antenna and touch screen PC - Items brought to the fitting room automatically recognized - Cross-sales functions - Realtime info about stock availability and prices - Automated garment suggestions and service requests Key Benefits: - Increased customer service - Better customer shopping experience - More precise data on consumer behavior

11 POS with RFID and Anti-Theft POS with RFID - POS equipped with an RFID reader and antenna Key Benefits: - Faster checkout process - Less errors Anti-Theft Solution with RFID - First UHF RFID security gate in the world - Regular or silent alarms (can be send to sales reps PDAs) - Unpaid items recorded automatically into the ERP system Key Benefits: - Exact data about of which items were stolen - Less missed sales opportunities

12 Results - Increased supply chain visibility - More accurate and faster inventory process - Less time spent on goods receiving - Noticeable decrease of out of stock situations - Less out of shelf - Sales increased - Better customer service and customer satisfaction - Increased consumer loyalty - Realtime data coming out of NP's own stores in Finland and Russia enabled the company to reduce stock amounts in NP's warehouses

13 Key Factors for Success - Effective partner co-operation - NP's innovative mindset and patience to test the solution multiple times - Clear business case driving the project - Full end-to-end RFID project (full ERP integration) Risto Rosendahl, CEO of NP

14 What's Next? POS Change - Discontinue using regular POS - Self-service POS - Mobile POS PLM (Product Life Cycle Management) - Origin Tracking - Authenticity Tracking Mobile Applications - Customer Interaction on iphone and Android - Unmanned Retail Store??

15 Project Partners - Project Management and Software - RFID UHF Gen 2 inlays - RFID chips and hardware - UHF RFID hand held readers - Fashion Logistics and warehouse management - Encapsulated RFID tags - UHF RFID Anti-Theft gates

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