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Department Store Management with RFID Technology

Background
This case study is based on a big departmental store based in China. The store was opened in 2003 and offers all kinds of clothes, toys, cosmetics, home appliances, furniture, sports goods, jewelry and baby products etc. For the past decade, the store has expanded its stores in many cities of China, which further increased the pressure on the store’s warehouse and inventory management. The store administration realized a need for an RFID based solution to streamline inventory management and to reduce the operational cost.

Challenges
  1. It was difficult for the customer to get proper information such as a discount, offer price, content, and texture of the display products. Therefore, resulted in bed shopping experience for them.
  2. The manual process of inventory management was subject to errors and delay in the process.
  3. Real-time access to inventory and customer information was not possible. In the absence of this data, operational and marketing teams could not anticipate the inventory requirement and consumer behavior respectively for increasing store revenue.

Solution 
Considering the departmental store’s requirement, Chainway offered its C3000 UHF mobile computer for inventory management. This mobile computer was configured with UHF circular antenna for 360-degree scanning of the tags. That is why the operator and floor employee could use these devices for stock tacking and for helping the customers with the products information by just scanning the item tags. All the items in the store, whether in stock or in the display were tagged with the unique RFID tags. These tags were encoded with all the information about the products such as MRP, offer price, discounts etc.  

Effects
  1. Customer satisfaction has enhanced many folds with a quick response to the customer queries. A floor salesperson can show the product details to the customers by scanning the product tag.
  2. Now stock tacking is just a matter of a few minutes. The stock operator just needs to wave the handheld device in the warehouse and it will count all the items in stock immediately.
  3. Availability of real-time data has enhanced the marketing activities planning for the store.
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