Collective Research Project: In Store Improvement. RFP feasibility tests December 2015

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1 Collective Research Project: In Store Improvement RFP feasibility tests December 2015

2 2 1. Introduction Context and scope Scope of the In Store Improvement Project Scope of the Proof-of-Concept Objectives Results Scenario List of Materials The following hardware will be provided by the candidate: The following software will be provided by the candidate: Planning and milestones Response guidelines Consultation objectives Procedure Contents of proposal Proposal structure Content Suggestions Project budget Payment conditions Confidentiality Intellectual property Project Management Selection procedure Evaluation criteria... 11

3 Disclaimer Assignment Governing law Contact... 12

4 4 1. Introduction The Flanders Institute for Logistics is an open innovation platform for the logistics sector that has the mission to leverage Flanders as a sustainable and innovative logistics top region in Europe. We adhere to a bottom up approach and are company driven. We are also a membership organization with about 500 members. 2. Context and scope 2.1. Scope of the In Store Improvement Project. In December 2014, the Flanders Institute for Logistics (VIL) launched the collective research project In Store Improvement. Inventory management is still a weak point in the fashion industry. Products are mostly not managed well at item level (color, size). However in today s economy, it is a must and required for managing e- commerce and omni-channel processes. If the item level control is applied today (by using barcodes), it requires a heavy workload (scanning) and discipline to have full inventory visibility in the shops. Will RFID be the right technology to achieve a much better inventory accuracy? What s the status of the technology and implementations, and what to expect over the coming years? What are the benefits? Which investments need to be made? Which barriers, challenges to expect? How do we start? With this project VIL finally aims to develop a roadmap for Item Level Identification for Fashion companies active in Flanders. 10 companies are participating in this project: Bleckmann, bpost, Caroline Biss, Fabrimode (Bel & Bo), GIKS Mode, GS1, PostNL, Scapa, Siemens and Van de Velde. This document outlines the RFP for the Proof-of-Concept. The aim of this PoC is to provide 100% itemlevel visibility at the shop floor of two or more project participants. This RFP outlines the functional requirements. The supplier candidate must propose a solution meeting these requirements or propose alternatives with a clear explanation. The candidates are fully free to propose a different set-up if this justifies a better solution.

5 Scope of the Proof-of-Concept The Proof-of-Concept will cover the following processes (minimum): 1. The RFID tagging/commissioning process (Distribution Center) 2. The shipping process (Distribution Center) 3. The receiving process (Retail Store) 4. The cycle count process (Retail Store) It is open to the candidate to offer additional processes in the shop (replenishment, POS, EAS) within the budget limitations. The Proof-of-Concept will be done at the following locations: 1. Distribution Center (commissioning and shipping) 2. Retail shop (receiving and inventory count) Three cases of the participants are directly concerned with fashion logistics: 1. Bleckmann (DC operations)/scapa(retail) 2. Van de Velde (Brandowner/Retail): DC operations and retail 3. Bel & Bo (Retailer): DC operations and retail All operations are located in Belgium, except for the retail store of Van de Velde. This store is a shop-inshop store in Paris. The amount of items in the Proof-of-Concept is a minimum of 1000 items per participant. The idea is to maximize the benefits of the Proof-of-Concept for all participants. Ideally all listed participants would be included in this Proof-of-Concept. The budget of the Proof-of-Concept is limited to EUR. It is up to the candidate to define the final number of locations included in the Proof-of- Concept Objectives The main objective for the Proof-of-Concept is to achieve a 100% product visibility for the tagged items at item level within the store through daily inventory checks during the whole Proof-of-Concept period Results Reports on inventory levels of each cycle count from each participating shop need to be available. All final test results will be documented in a clear report. The test scenarios and results will be described and completed with conclusions and recommendations.

6 6 3. Scenario The following steps describe the base scenario for the Proof-of-Concept. 1. RFID Commissioning: all items which are part of the Proof-of-Concept, will be identified through an RFID tag. The information of the item will be linked to the RFID tag. Preference will be given to a GS1 compliant solution. This use case must show how product information can be transferred and how proper serialisation can be achieved in compliance with GS1 requirements. 2. During shipping (DC) all tagged items will pass an RFID reader. Shipping status will change. This use case must assess the actual status of reading packed items in bulk. (min. 50 units in a cardboard box) 3. During receiving (Shop) all tagged items will pass an RFID reader. Shipping status will change. This use case must show the time it takes to read shipped items with a mobile reader with 100% accuracy in a working (shop) environment. 4. Each day, a shop assistant will perform a cycle count. A report of the available items will be produced. This use case must show the time needed to achieve a 100% accurate inventory of the shop by using a handheld reader. Baseline inventory accuracy figures will be provided by the participants of the Proof-of-Concept. It is allowed to include other use cases if included in the provider s solution, for example store replenishment (back room/sales floor), Point-of-Sales (Check-Outs) and theft control. 4. List of Materials 4.1. The following hardware will be provided by the candidate: 1. RFID labels (quantity depends on scope of the Proof-of-Concept) 2. RFID printer (commissioning) 3. RFID reader for shipping 4. RFID reader for receiving 5. RFID reader for cycle counting

7 7 There is no specific need for having different RFID readers in the shop (see above). The same RFID reader can be used to cover both processes The following software will be provided by the candidate: The candidate will provide the software covering the different processes and reports as described in the scenario. By preference the software is developed to be used in a fashion retail environment. The software will also include the middleware managing the RFID hardware. Integration of the candidate s solution with the participant s back-end system is not a requirement of the Proof-of-Concept. 5. Planning and milestones The Proof-of-Concept run time will be 2 months at a minimum. The Proof-of-Concept run time is considered to be from the first cycle count in the retail shop until the last cycle count. Start of the Proof-of-Concept: mid-february Response guidelines 6.1. Consultation objectives VIL is looking for one or more candidates (integrators/service providers) capable of providing the best possible products and services for its In Store Improvement project in terms of quality, price and flexibility, in compliance with the specifications. The candidate is asked to submit its response in compliance with the described response guidelines 6.2. Procedure The RFP will be sent as an electronic PDF document via mail to the multiple system integrators who are invited to participate in this RFP. Furthermore the RFP will also be published on the VIL website. Electronic documents and questions should be sent to Jan Merckx at the following address: jan.merckx@vil.be

8 8 Interested parties can apply by a full and substantiated written quote sent electronically to the following e- mail address: jan.merckx@vil.be. Latest reception date is January 15th PM GMT. From Jan 18th to Jan 22th selected applicants may be invited for a meeting in order to present and to provide additional explanations on their quote Contents of proposal Proposal structure The proposal has to respect the following format: Brief Company presentation and important figures (turnover, profit for 2014, number of employees) Solution description Price offer Project approach, project management and detailed planning CV s of the project team Project references in Fashion sector (includes also contact person and contact information) A certified copy of the civil liability insurance police in case of professional misconduct The tender may be submitted in English or Dutch Content The applying party provides a quote that meets the requirements and functionalities described in the RFP. The proposal contains a clear budget in terms of usage of hardware material, software and services (project management, development, maintenance, installation). The hardware devices shall be clearly specified and marked. For the services, a clear overview of the cost structure is required. Resources should be identified by their number of budgeted man-days, together with summary, credentials, project approach and planning Suggestions Of course, the system integrators are free to propose, in their capacity as professionals, any functional or technical solution that would be able to meet or enhance the objectives contained in this RFP. Within this document some suggestions have already been added.

9 9 The intention of the project is to give to the participants a maximum of learning exposure. Within this context the candidate should try to maximize the number of shops/participants in the project Project budget The implementation of this project is offered at a fixed price (maximum EUR) (see page 31 of the Law on public procurement) Payment conditions Payments shall be performed according to the following scheme and on the basis of acceptances: At start-up: 20% After acceptance test: 40% After execution of the feasibility tests and final report: 40% 6.6. Confidentiality Confidential Information means any oral, written, graphic or machine-readable information communicated by the Receiving party related to this RFP or consequent discussion related to the project. Confidentiality applies to information, but not limited to this RFP, the planned testing or information of commercial nature, that the principal or participating companies in the project disclose to the external party orally, written or electronic format. Receiving party shall not have any liability to the disclosing party with regard to any Confidential Information which Receiving Party can prove: was in the public domain at the time it was disclosed by the disclosing party or has entered the public domain through no fault of Receiving Party; was known to receiving party, without restriction, at the time of disclosure, as demonstrated by files in existence at the time of disclosure; is disclosed with the prior written approval of the disclosing party or is disclosed to receiving party by a third party which is not subject to any confidentiality restrictions regarding such information; is disclosed pursuant to the order or requirement of a court, administrative agency, or other governmental body; provided, however, that receiving party shall provide prompt notice of such court order or requirement to the disclosing party and shall reasonably cooperate with the disclosing party to enable the disclosing party to seek a protective order or otherwise prevent or restrict such disclosure; is or has been independently developed by employees, consultants or agents of receiving party without violation of the terms of this agreement and without reference or access to any confidential information.

10 10 These confidentiality commitments apply for 2 years Intellectual property Receiving party agrees, except as otherwise expressly authorized by the disclosing party, not to make any copies or duplicates of any confidential information. Any materials or documents that have been furnished by the disclosing party to receiving party in connection with the relationship shall, except as may be required by applicable law or court order, be promptly returned to disclosing party or destroyed by receiving party, within ten (10) days after (a) the transaction has been rejected or concluded or (b) the written request of the disclosing party. Nothing in this RFP shall be construed as granting any rights under any patent, copyright or other intellectual property right of the disclosing party, nor shall this agreement grant receiving party any rights in or to the disclosing party s Confidential Information other than the limited right to review such confidential information solely for the purpose of determining whether to enter into the Transaction. In case of violation of this provision regarding intellectual property, a compensation of euro will be paid by the contractor per violation, subject to higher claims if the actual damage amount surpasses the aforesaid Project Management Project management is in the hands of the VIL. VIL will monitor and supervise the tasks of the selected partners. The daily management of the project will be observed by Jan Merckx from VIL.

11 11 7. Selection procedure 7.1. Evaluation criteria The main evaluation criteria are: Ability to comply the requirements of the RFP and to offer a proper quotation in the recommended timing. Quality and proven business experience in similar environments and/or solutions. Implementation and installation of the solution within the fashion industry in compliance with GS1 requirements is an important plus. The budget of the proposal. The plan of approach in terms of project management, support and implementation. Availability for the implementation of the work Disclaimer This offer request does not imply any obligation for VIL Assignment Given the limited value of the quotation, less than 50,000 Euro, excl. VAT, and taking into account Art. 17 2, 1, a WOO 1993 and 26 2, 1, a WOO 2006, the RFP is granted on the basis of the negotiated procedure without prior publication Governing law This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the Belgian laws. The parties agree that the courts of Antwerp, Belgium, shall have sole and exclusive jurisdiction over any dispute arising under the terms of this Agreement. The Parties consent to venue in Antwerp, Belgium. If any of the provisions of this RFP are found to be unenforceable, the remainder shall be enforced as fully as possible and the unenforceable provision(s) shall be deemed modified to the limited extent required to permit enforcement of the RFP as a whole.

12 Contact Vlaams Instituut voor de Logistiek VZW-VIL Koninklijkelaan Berchem Contact person: Jan Merckx Tel: Mail:jan.merckx@vil.be Additional questions for clarification can be sent to the above address until January 11 th

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