[ 1:41-4:06 ] How has RFID evolved and enhanced retailing over time?
RFID technology is rapidly evolving, and rapidly being integrated into retail tech stacks. It's a transition from being a technology to being a solution. Tune in to hear Ted describe how RFID allows retailers to more accurately and easily track their product. Ted describes RFID as barcodes on steroids.
[ 4:52-6:45 ] How RFID helped Macy’s reduce their safety stock.
Macy's was struggling with finding products and completing orders in an efficient way. Think about the two departments that present an inventory nightmare: intimates and denim. With RFID technology, you can take a scan of a wall of denim and know exactly what you're missing. Macy's used to withhold safety stock for omnichannel availability (a billion dollars worth). When they started with RFID tags, they were able to scan their entire stores and reduce that safety stock to nothing.
[ 7:30-9:18 ] How long does it take retailers to implement RFID in-store?
Retailers don't need to roll out new initiatives across your store networks all at once. It's risky and failure comes at a high cost. Ted McCaffrey suggests rolling out RFID technology at 3-5 stores to start. The proof of concept takes about 6 months to understand how it works in your store, what the benefits are, and how to tie it into the planogram.
[ 15:04-16:29 ] What makes Ship from Store and BOPIS the greatest solutions of all times
Ted McCaffrey believes BOPIS and ship-from-store are the greatest solutions of all time. In his words, it means instant money. You are able to leverage your entire store network to leverage demand instead of focusing on a few isolated warehouses. During the pandemic, BOPIS has become a necessity. 20-30% of customers buy more when they come in-store to pick up.
[ 18:54-19:59 ] How Ship from Store helps to liquidate orphan inventories.
What is orphan inventory? In Ted's words, it's inventory that has been shuffled around and forgotten, often for years. With RFID technology, retailers are able to cycle-count that inventory in order to make it available to the customer. It flushes older or inactive items out quicker.
[ 23:10-25:48 ] How retail brands can measure ROI of the returns of RFID implementation.
Ted McCaffrey recounts his experience working with a luxury retailer that had to cancel or delay omnichannel orders because they couldn't find the items in time. There are a lot of labor dollars associated with finding inventory. When measuring ROI for this technology, it's important to focus on cancellations, split shipments, and the cost of counting inventory. Lululemon was an early adopter of RFID technology, and they're able to count their entire store every week in less than an hour.
[ 31:21-33:08 ] Role of RFID in future of stores
The more that retailers can take the friction out of the shopping experience, the more than can combine the physical and the digital, the better off they will be. Ted imagines RFID technology at the check-out process, reading the whole cart for you to make that process as easy as possible.