Moving to 100% RFID Tagging
Moving to 100% RFID Tagging of
General Merchandise
Kim Phillips: M&S Head of GM Packaging
October 2013
Moving to 100% RFID Tagging
Marks and Spencer plc Key Facts
• Founded in 1884
• Group Turnover £10bn
• 49% General Merchandise
• 51% Food
• Over 750 UK stores & 430 international stores in 53 territories
• 82,000 employees worldwide
• 2,000 suppliers
• 21 million customers visit M&S stores each week
• Plan A – Aims to be world’s most sustainable major retailer by 2015
Moving to 100% RFID Tagging
Transforming the business
Moving to 100% RFID Tagging
Execution: 24 minutes to inspire and impress
Moving to 100% RFID Tagging
RFID Scanning
Execution: Availability
Moving to 100% RFID Tagging
History of RFID in M&S
• M&S were the first major retailer to adopt RFID technology
• Will use over 400m tags per annum by 2014
• Have been using RFID on Food totes since 2000
• Currently have 9m totes with HF RFID tags
• Started trials on clothing RFID in 2003
• Decision to roll-out on clothing made in 2005
• Extension to all General merchandise agreed 2012
Moving to 100% RFID Tagging
• Get accurate information on the stock position in each store, and keep it accurate!
• Improve the TRUE availability of sizes and colours to the customer.
• Become known as “The store in which you can always find your size”
• Increase customer satisfaction and reduce manual stock checking by staff.
• Deliver Increased Sales and a rapid Return on Investment
Business Case Objectives for RFID in Clothing
Moving to 100% RFID Tagging
In 2004 reader was
tethered to a shopping
trolley!
In 2006 we adopted
a 2 piece wireless
reader
Today we have new
Gen 2 HHT readers
Evolution of RFID Readers in M&S
Moving to 100% RFID Tagging
RFID Scanning in M&S
Moving to 100% RFID Tagging
How it works in M&S
Garments arrive in store
with RFID tags applied at
source.
Customer assistant scans
garments on a 2 weekly
cycle
Completed count
submitted to
Central RFID
database
Count validated
and sent on to
Stock Mgmt
Replenishment prompted All sizes on display to
maximise availability & sales
Moving to 100% RFID Tagging
RFID in M&S Today
• Top 270 stores count stock with a mobile reader to correct their
inventory data
• Extending RFID to all items and 750 stores in Spring 2014
• Over 200 factories in 20 countries apply RFID tickets
and labels
• Replenish from the DC more accurately
• Better availability proven to increase sales.
• During 2012 converted to Gen 2 EPC standards
• Intelligent Label TM
now replaced by RFID ISO emblem
• Sole supply of RFID tags from Avery Dennison
Moving to 100% RFID Tagging
We are using a variety of tagging solutions…
Integrated RFID Tickets
Moving to 100% RFID Tagging
Self Adhesive RFID Labels on promotional tickets
Moving to 100% RFID Tagging
Metal Costume Jewelry uses normal RFID labels
Moving to 100% RFID Tagging
• Cosmetics
• Pastes
• Metals
• Small footprint or diameter
• Stacked products
• Foil packaging
Many Home items can use
RFID labels similar to Clothing
Avery Dennison has developed specialist
RFID labels for:
Moving to 100% RFID Tagging
• Business case for RFID stock accuracy remains strong
• RFID delivers the stock accuracy you need for multi-channel retailing.
• Almost 1 billion tags supplied by Avery Dennison with no
data loss or duplication
• Good change management and compliance reporting is essential
• Initial focus should always be on one or two major benefits to achieve a
quick ROI
• Longer term strategy needs to build ROI on multiple benefit applications
across the supply chain. One tag many functions!
Lessons from 8 years of RFID Scanning
Moving to 100% RFID Tagging
M&S current RFID solution
RFID tags and labels delivered
from Avery Dennison service
bureau or in-plant solution
Rapid RFID inventory
scanning
1
2
Moving to 100% RFID Tagging
Future End to End RFID solution
RFID shipping
labels generated
Work in Process
progress tracking
via RFID
Packing plans
verified via RFID
carton scans
Automated RFID
shipping
Automated Advance
Ship Notice
generation RFID tags and labels
delivered from Avery
Dennison service
bureau or in-plant
solution
RFID store destination
labels generated
Pick and Pack cartons
RFID verified
Automated
RFID receiving
Exception
reporting for
immediate
sales floor
replenishment
Rapid RFID
inventory
scanning
RFID
inventory
counts
Automated
RFID receiving
Automated
Advance Ship
Notice generation
1
2
5
4
6
3
7
8 9
10
14
13
12
11
RFID tag
scanning
for loss
prevention
16
RFID
point of sale
transaction
15
Moving to 100% RFID Tagging
Execution: Footwear & Accessories
Moving to 100% RFID Tagging
Important for Consumers to have accurate
information about RFID
We support the new Consumer Web Site
developed by RFID in Europe
www.rfidandyou.org
Moving to 100% RFID Tagging