Question

In: Operations Management

explain how RFID has affected retailing operations in Lululemon. What are some of the key benefits...

explain how RFID has affected retailing operations in Lululemon. What are some of the key benefits of this technology?What does the RFID chip tell you and how does it impact the guest experience? What type of merchandise is most likely to be crossdocked. at retailers' distribution centers? Why is this the case? Which of the following types of retailers do you think would benefit most from instituting CRM a. supermarket b. banks c. autombile dealers, or d. consumer electronic retailers? Why?

Solutions

Expert Solution

RFID can generate information that can be combined with other store-level data and provide insights in areas including demand forecasting, dynamic pricing and in-store marketing.

Jonathan Aitken, lululemon athletica's director IT, store technology operations and RFID program director, described how passionate the company's store employees are about the game-changing technology that was rolled out in 2014.

Lululemon's primary objective for RFID was elevating the customer experience. "The best way to make customers happy is to give them as many choices as possible," Aitken says. At the beginning of the rollout, the company found that it typically had about 250 SKUs out of its 15,000 SKUs in store that were in the stockroom and not available on the shop floor. Restocking used to be a manual "eyeball process" with an associate on the phone describing which products she did or didn't have. And once customers began trickling in, the restocking would come to a halt as associates switched into customer-service mode. Today, with RFID fully enabled the number of SKUs languishing in the stockroom stands at about 25 — roughly a 90 percent improvement.  

Radio-frequency identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects. The tags contain electronically-stored information. Passive tags collect energy from a nearby RFID reader's interrogating radio waves. Active tags have a local power source (such as a battery) and may operate hundreds of meters from the RFID reader. Unlike a barcode, the tag need not be within the line of sight of the reader, so it may be embedded in the tracked object. RFID is one method for Automatic Identification and Data Capture (AIDC).

RFID tags are used in many industries, for example, an RFID tag attached to an automobile during production can be used to track its progress through the assembly line; RFID-tagged pharmaceuticals can be tracked through warehouses; and implanting RFID microchips in livestock and pets allows for positive identification of animals.

The process of cross docking will not suit every warehouses needs, it is therefore important to make an informed decision as to whether cross-docking will increase the productivity, costs and customer satisfaction for your specific business. Cross docking can advance the supply chain for a variety of specific products. For one, unpreserved or temperature controlled items such as food which need to be transported as quickly as possible can be benefitted by this process. Additionally, already packaged and sorted products ready for transportation to a particular customer can become a faster and more efficient process through cross docking.

main reasons

  • Combine numerous smaller product loads into one method of transport to save on transportation costs. This process can be described as ‘consolidation arrangements’.
  • Break down large product loads into smaller loads for transportation to create an easier delivery process to the customer. This process can be described as ‘deconsolidation arrangements’.

AUTOMOBILE DEALERS would benefit the most.

GAO RFID’s Automobile Dealership System combine RFID hardware with a desktop application designed specifically for automobile dealership management and security. With a number of RFID readers mounted in different areas of the dealership, the system is able to track and inventory all tagged cars, key fobs as well as employees in the dealership. Features:-

Test Drive Detection

ReportsThe user

Multiple Deployment Options Available

Tag Tracking


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