I.T.'S International Co., a consortium of Japanese apparel and textile companies including Flandre, Teijin Group and Sumikin Bussan Corp., have implemented RFID technology in store operations. The solution, providing cost savings throughout supply chain and resulting in positive effects on consumer prices, utilises UPM Raflatac ShortDipole RFID tags. This is the first large scale item-level RFID implementation for the Japanese textile and apparel industries.
The solution, named SPA (Speciality Store Retailer of Private Label Apparel), is compliant with the guidelines for RFID in apparel supply chain management provided by the Japanese Ministry of Economy, Trade and Industry coupled with the Japan Apparel Industry Association. Moreover, it is the first-ever RFID operation commissioned by the Ministry of Economy, Trade and Industry in Japan.
The SPA solution has been implemented in all phases of the supply chain, including production, distribution and stores, for all parties of the consortium. On store level, the RFID implementation saves time as information processing for incoming goods can be done immediately instead of doing it manually, item by item. Stocktaking and inventory data transfer between stores are also substantially faster, as they can be done in real-time by utilising RFID.
Information on stock situation for products by colour and size, as well as related goods and their location are instantly available. The item-level solution streamlines also check-out process as clerks can scan all products for payment simultaneously. This leaves more time for store personnel to focus on customer service.
For strategic planning in the apparel industry, RFID technology has a lot to offer. As in this case, the technology can be harnessed to provide data of customer profiles, trends and goods movement, which create an excellent basis for brand strategy planning and product development.
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