Item-level tracking solution from IBM

The goal

A sensor for timely stock replenishment

From retail to distribution, transportation and manufacturing, the item-level tracking solution from IBM can help enable you to offer the highest level of product availability to your customers using radio frequency identification (RFID). Run an accurate and efficient supply chain. Identify restocking and replenishment needs as they occur. Know what's on the shelf, what's in the storeroom and what's on order with near real-time, item-level inventory visibility.

The advantage

A solution for forward-thinking companies

An accurate, up-to-the-minute view of your in-store inventory is critical in today's market where shoppers have very little store or brand loyalty. To stay ahead in the rapidly changing industries of retail, distribution, manufacturing and consumer products, forward-thinking executives are asking how to keep up with competition and grow their businesses.

The item-level tracking solution uses RFID technology, along with sensors and actuator tags, to generate higher revenues, greater customer service opportunities, wider margins and capital optimization. The item-level tracking solution can be introduced incrementally, as a phased approach, toward integrating all processes. Start small, realize benefits, refine the process and move forward. An integrated solution can compile data from consumer-driven interactions and transactions, employee tasks in sales replenishment and in-store operations so you can improve processes through better management of assets and inventory.

The benefits

Tag it and find it

Faced with operational efficiency pressures, high employee turnover and dips in customer loyalty, you must drive down cost. With item-level tracking, salespeople can be automatically alerted when inventory needs replenishment. In addition, RFID enables associates to know where items are located. Our item-level tracking solution can help you achieve a systematic process workflow and tighter integration with business operations.

• Receive last-minute docking center order updates based on a dynamic sales forecast.
• Gain an up-to-the-minute, accurate view of your inventory.
• Encounter fewer stock-outs to increase sales.
• Reduce overages to see a decline in your holding costs.
• Generate customer loyalty and appreciation by meeting customer needs.

The goal

Consumer-driven replenishment

Are you looking for a solution to improve your stocking, replenishment or inventory processes? From retail to manufacturing, IBM offers an innovative item-level tracking solution, based on radio frequency identification (RFID), to improve workflow processes across the supply chain to the store floor. Our solution helps ensure products are at the right place at the right time to maximize sales.

The advantage

A pioneer in RFID technology

Based on our RFID experience, we have developed a comprehensive item-level tracking solution that supports clients from strategy through pilot, deployment and ongoing management. IBM:

• Has worked with RFID for more than 10 years and understands the technology, the marketplace and the customer needs.
• Is leading the RFID market with the intention of becoming the business advisor and system integrator of choice.
• Is executing true end-to-end solutions in RFID for the long term.
• Is driving the market in development and deployment of RFID solutions.
• Continues to work closely with the major independent software vendors and original equipment manufacturers (OEMs), including tag and reader vendors, to deliver a complete solution to our customers.
• Is working to provide solutions across the whole spectrum of RFID, including leading this market with RFID-enabled middleware.

The benefits

Dynamic near real-time merchandising

The item-level tracking solution from IBM can enable you to accurately read items entering and leaving the store. By tagging items, you can monitor a product's whereabouts from the docking center to the back of the store to the shelf. Our solution can help you:

• Improve inventory accuracy with better inventory management and on-time ordering.
• Replenish shelves more quickly with improved back-room management.
• Gain product visibility with automated data capture.
• Reduce inventory holding by providing knowledge of what you have and what you need in virtual real-time.
• Experience more accurate and timely data collection to expedite processing.
• Replace manual or paper-based processes in plan, docking centers, back rooms or on the sales floor.
• Automate receiving so sales staff can concentrate on selling.
• Reduce shoplifting and sweethearting, by tracking items as they leave the store, while speeding customer checkout.

The approach

A fashionable German implementation

One of the leading German fashion merchandising companies for men wanted to transform their supply chain. The company was looking for an end-to-end RFID solution to address inventory management, supply chain visibility and shrinkage by tracking items from suppliers in Asia to retail stores in Europe. They chose IBM and IBM Business Partner OatSystems to provide them with an item-level tracking solution using electronic article surveillance (EAS) and RFID item tags. We delivered a managed service solution, enabling the fashion leader to pay on a monthly basis, reducing risk of deployment and allowing them to focus on improving their core business of merchandising.

The financial advantage

Quantify benefits in this cost-sensitive market

Industry research has shown that an RFID system like the item-level tracking solution from IBM can produce the following benefits:

• Reduce labor costs by 5-40% depending on your current business processes.
• Decrease inventory holding by 10-30%.
• Lower shrink by 5-30%.

In addition, our solution can improve store-level inventory visibility and out-of-stocks by:

• Reducing cycle count time from days to minutes.
• Increasing cycle counting accuracy to greater than 99%.

Next steps

Questions about this solution? Contact an IBM sensors and actuators specialist.

The issues

Tag, you’re IT

If your company needs to enhance operations, improve stock, replenishment and inventory management, or gain supply chain efficiency, the item-level tracking solution from IBM may be just what you are looking for. Whether you're in the retail, manufacturing, consumer products or telecom industry, RFID, along with sensor and actuator tags, can provide visibility of products throughout your operations.

The benchmark

A cutting-edge leader in RFID technology

From retail to distribution, travel and transportation, and consumer products, IBM is dedicated to advancing RFID solutions.

• We are an early adopter of RFID with ongoing research at Watson Labs and the experience of implementing the technology in our own semiconductor manufacturing plant.
• We are a member of the Auto-ID Center Technology Board and EPCglobal, as well as the author of leading industry white papers and studies on RFID.
• IBM has invested US$250 million in sensors and actuators.

The components

A tag team of services to meet your needs

Every company is unique and has different needs. We offer a comprehensive team to help ensure a smooth implementation from start to finish.

• IBM Global Technology Services provides IT infrastructure services including RFID reader/antenna configuration, installation, network installation integration and maintenance support.
• IBM Global Business Services provides middleware application services for custom RFID application development, executing RFID projects worldwide.

Depending on your unique configuration, the item-level tracking solution from IBM may also include the following components:

• IBM WebSphere® Premises Server, a robust, extensible J2EE™ application platform delivering a flexible architecture for data capture and delivery from a broad set of devices, as well as filtering, aggregation and integration of RFID events with other sensor information.
• IBM WebSphere MQ, an enterprise-class, message-orientated middleware that provides a reliable and scalable messaging infrastructure for integrating applications running on diverse hardware and software platforms.
• IBM WebSphere Application Server Network Deployment, a J2EE application server that provides security-rich, scalable, resilient middleware infrastructure for deploying applications. It combines near-continuous availability with automated performance optimization, and centralized management and monitoring for business-critical applications.
• IBM RFID Event Server, a J2EE application deployed on WebSphere Application Server that provides event processing using a system of WebSphere MQ message queues, handlers and event processing logic. It can also record RFID event information into an IBM DB2® relational database.
• IBM Tivoli® Monitoring components, which provide the collection and analysis of monitoring data for the WebSphere Application Server, We bSphere MQ, DB2 and Edge Controllers.

The implementation

Improving fashion one tag at a time

A German-based fashion industry company looking for an end-to-end RFID solution to track items from suppliers in Asia to retail stores in Europe chose IBM and IBM Business Partner OATSystems. Our solution was an industrial-strength RFID platform, including tools to scale to their future needs. Utilizing electronic article surveillance (EAS) and RFID tags, our item-level tracking solution was delivered as a managed service, enabling the company to pay on a monthly basis. This helped reduce deployment risk while increasing supply chain and process efficiency through better transparency in stock. The company was also able to improve product availability with online access to accurate, near real-time information.

The cost of ownership

Easing implementation for IT personnel

The item-level tracking solution from IBM is designed to reduce the cost of ownership by offering:

• A service-oriented architecture platform that integrates with existing applications.
• A flexible deployment architecture that fits the needs of various use cases.
• A pre-bundled solution with preconfigured business applications that ease learning and help produce early benefits.
• RFID best practices specific to your industry whether it's retail, consumer products, telecommunications or pharmaceuticals.
• Support for various types of RFID devices, including active, passive, sensors and bar codes.

Next steps

Questions about this solution? Contact an IBM sensors and actuators specialist.