David Savastano, Editor11.26.19
The field of RFID is clearly evolving, and it is interesting to hear the perspective of people who have long been involved in the field. From time to time, Printed Electronics Now interviews some of the leaders in the field and presents their viewpoints.
Printed Electronics Now: How are you using RFID in your operations?
Yongli Zhang: China Outfitters Holdings, Ltd. is a traditional retail clothing company with a supply chain that includes manufacturers, warehouses, and both physical and online stores.
We introduced RFID in two phases:
Zhang: For any company that wants to implement RFID technology, ROI and goals need to be clearly defined in advance, especially in light of the specific characteristics of the company’s goods and supply chain. Our company is using RFID technology to drive improvements in the following five functions in the management of our supply chain: identification, counting, merchandise positioning, traceability, and theft prevention.
In the first phase of RFID usage that we have completed, the biggest benefit is the significant increase in warehouse efficiency and accuracy. In the warehousing acceptance of the goods mentioned above, the efficiency of the operation has increased by at least 25 times. This is driven by the use of the RFID counting function.
We believe that the biggest difference between bar code technology and RFID technology is that the former requires close contact when reading, while RFID is non-contact and can be read from farther away. It is precisely because of the non-contact reading characteristics of RFID that “group reading” of items becomes possible. When accepting a box of packages containing several items, traditional bar code technology required us to open the box and scan each individual item with a scanner, and then close the box, which takes a few minutes. For the RFID technology we only need to pass the closed package by the RFID reading device. The whole reading process of a package with a quantity of 200 products or less takes just 1 to 2 seconds. The efficiency advantage is very obvious.
There is also the application of returns processing. In the past, when processing the return of an online order, the original order was matched according to the return order or the delivery order information of the returned goods, but the proportion of incomplete information was very large. So the return and matching of the original order caused a big obstacle and work efficiency was very low. RFID technology can be used to read the EPC code of the returned goods and quickly match it to the original order, greatly simplifying the returns operation process. This is of great significance to apparel retailers with an increasing proportion of online sales.
PE Now: What have been the biggest challenges in implementing RFID, and how did Impinj help you install the operations?
Zhang: When planning for the implementation of RFID, we thought that implanting RFID chips into the commodity tag was going to be the most challenging task, but during the actual implementation we found that this was not the case. Our challenges were:
Various types of RFID reading devices and antennas are arranged at our suppliers, warehouses, and retail stores in order to guarantee fast reading of items. We have also selected Impnj-related products for these areas.
There is also technical support and training. Impinj’s Shanghai-based team was able to perform this easily and quickly. This is the biggest help for us as a company that is still new to RFID technology.
PE Now: Have there been any unexpected benefits that you have received from using RFID?
Zhang: In some cases, RFID technology can be used to “read” goods in a package without opening the box, so there is no subsequent resealing of the box since it remains unopened, which improves the efficiency and accuracy of the acceptance operation. At the same time, it also avoids the use of additional tape, saves a lot of consumables, and conforms to the concept of green environmental protection.
PE Now: Are you receiving good feedback regarding the system from your customers?
Zhang: Yes, the most positive response is that the efficiency and accuracy of the delivery and delivery operations have increased significantly. The time needed for checkout at the time of purchase is shortened, and the experience is better.
PE Now: Do you anticipate further implementing RFID in the coming year?
Zhang: Yes, our current RFID applications are more focused on improving logistics efficiency. In the retail sector, we use RFID technology to collect product activity information, adjust product configuration and displays to procurement plans, as well as for anti-counterfeiting and anti-theft. There is also a need for a process of continuous improvement.
- Yongli Zhang, China Outfitters Holdings, Ltd.’s executive chairman and CEO, spoke with Printed Electronics Now about the company’s experience with RFID, as well as its successes and its plans for future deployment.
Printed Electronics Now: How are you using RFID in your operations?
Yongli Zhang: China Outfitters Holdings, Ltd. is a traditional retail clothing company with a supply chain that includes manufacturers, warehouses, and both physical and online stores.
We introduced RFID in two phases:
- In the first phase, which began in the second half of 2017, we added RFID tags to all new products, deployed RFID reading devices in the warehouse and manufacturing locations, and established a database for managing RFID information. This phase has been completed. The biggest advantage is that the efficiency of merchandise storage, sorting, review, and delivery is greatly improved—especially the efficiency of shipment inspection. Acceptance of shipments received by the warehouse has increased by more than 25 times;
- In the second phase, beginning in the first half of 2020, we plan to deploy RFID reading devices at retail stores mainly to improve the efficiency and accuracy of operations in the cash register, inventory, storage, and delivery areas. Finally, an RFID reading device will be installed in the fitting room, fitting mirror, and the store ceiling to record the position and movement of products, analyze product activity, and manage the positioning of products to inform merchandising. This phase will be completed in the next two years.
Zhang: For any company that wants to implement RFID technology, ROI and goals need to be clearly defined in advance, especially in light of the specific characteristics of the company’s goods and supply chain. Our company is using RFID technology to drive improvements in the following five functions in the management of our supply chain: identification, counting, merchandise positioning, traceability, and theft prevention.
In the first phase of RFID usage that we have completed, the biggest benefit is the significant increase in warehouse efficiency and accuracy. In the warehousing acceptance of the goods mentioned above, the efficiency of the operation has increased by at least 25 times. This is driven by the use of the RFID counting function.
We believe that the biggest difference between bar code technology and RFID technology is that the former requires close contact when reading, while RFID is non-contact and can be read from farther away. It is precisely because of the non-contact reading characteristics of RFID that “group reading” of items becomes possible. When accepting a box of packages containing several items, traditional bar code technology required us to open the box and scan each individual item with a scanner, and then close the box, which takes a few minutes. For the RFID technology we only need to pass the closed package by the RFID reading device. The whole reading process of a package with a quantity of 200 products or less takes just 1 to 2 seconds. The efficiency advantage is very obvious.
There is also the application of returns processing. In the past, when processing the return of an online order, the original order was matched according to the return order or the delivery order information of the returned goods, but the proportion of incomplete information was very large. So the return and matching of the original order caused a big obstacle and work efficiency was very low. RFID technology can be used to read the EPC code of the returned goods and quickly match it to the original order, greatly simplifying the returns operation process. This is of great significance to apparel retailers with an increasing proportion of online sales.
PE Now: What have been the biggest challenges in implementing RFID, and how did Impinj help you install the operations?
Zhang: When planning for the implementation of RFID, we thought that implanting RFID chips into the commodity tag was going to be the most challenging task, but during the actual implementation we found that this was not the case. Our challenges were:
- First, the deployment of RFID reading devices involves manufacturers, warehouses, and retail terminals. The number and investment are huge. SMEs will have greater financial pressure to implement them, and there are pressures on personnel training;
- The second is the pressure of big data. With the implementation of RFID, each item has a separate ID card, and the database also records the movement path of each item, which led to a big explosion of data. The original ERP database often does not have the ability to manage such data, and needs a new database management solution.
Various types of RFID reading devices and antennas are arranged at our suppliers, warehouses, and retail stores in order to guarantee fast reading of items. We have also selected Impnj-related products for these areas.
There is also technical support and training. Impinj’s Shanghai-based team was able to perform this easily and quickly. This is the biggest help for us as a company that is still new to RFID technology.
PE Now: Have there been any unexpected benefits that you have received from using RFID?
Zhang: In some cases, RFID technology can be used to “read” goods in a package without opening the box, so there is no subsequent resealing of the box since it remains unopened, which improves the efficiency and accuracy of the acceptance operation. At the same time, it also avoids the use of additional tape, saves a lot of consumables, and conforms to the concept of green environmental protection.
PE Now: Are you receiving good feedback regarding the system from your customers?
Zhang: Yes, the most positive response is that the efficiency and accuracy of the delivery and delivery operations have increased significantly. The time needed for checkout at the time of purchase is shortened, and the experience is better.
PE Now: Do you anticipate further implementing RFID in the coming year?
Zhang: Yes, our current RFID applications are more focused on improving logistics efficiency. In the retail sector, we use RFID technology to collect product activity information, adjust product configuration and displays to procurement plans, as well as for anti-counterfeiting and anti-theft. There is also a need for a process of continuous improvement.