Aviation:

International Air Transport Association (IATA) has mandated that by 2018, airlines must track each pieces of baggage that comes in at check-in and goes out at arrival. It means that airlines will need to analyse their existing monitoring systems, and implement appropriate technology which can do this in a fool-proof manner while saving on cost and time. Delta Airlines, one of America’s top airlines, has invested over $50million in RFID for baggage tracking and management. Delta Airlines have realized that RFID signals can be picked by receivers 99.85% of times as compared to a 90% success rate of manual scanners. And, the difference of 8% could be the cause that leads to loss or delay of more than 20 million baggage pieces. RFID in baggage tracking will lead to a considerable reduction in lost baggage by 2024 and will enable the air transport industry to save over $3 billion within the next seven years. In addition, airline operators, maintenance and repair organizations (MROs) and manufacturers across the supply chain will rely on RFID to streamline the pace of operations, and ensure fastest possible turnaround for passenger as well as cargo flights.

The scope of RFID in aviation is immense. At Dolphin, we are privy to this global interest and are feeling the pulse in the form of requests from our foreign partners for helping airlines in the respective countries to implement RFID systems to gain a clear business advantage. In India, we are in talks with multiple airlines to help them to adhere to the IATA guidelines and be operationally superior by implementing RFID technologies.

Retail:

In 2016, 4.6 billion clothing items carried RFID tags. However, this does not represent even 10% of the total apparel market, thus the potential for growth in retail and apparel is immense.

In a survey of 60 retailers with revenues of $500 million and above undertaken by Kurt Salmon, 73 percent have said that they are either deploying or are doing a pilot on RFID technologies. That number is more than double the 34 percent for the same study done in 2014.

Retail majors such as Marks & Spencer and Decathlon have had major RFID implementation in 2016. Even RFID tag providers Avery Dennison, Impinj and NXP have all reported a strong growth in tag sales. Avery Dennison has had nearly 30 percent growth in 2016 despite a slow apparel market in the US.

The other micro-segments that fall in the broad retail ambit such as cosmetics, electronics, auto ancillary, sports goods, jewellery and small home appliances are all seeing RFID tagging and tracking. The retail space, it’s entire supply chain, right to the warehouses, are all potential areas for robust RFID implementations. The ever-burgeoning retail market and retailers are seeing the benefits of RFID hence we would see a huge fillip in this space for RFID technologies in 2017. RFID is a must in the emerging Omni Channel sales which is the way forward for Retail.

IT & ITeS:

The IT services opportunity is huge world over. There are many mid-tier to small-tier IT companies in India which employ thousands of people. The laptops, desktops, dongles and mobiles assigned to people are the assets that organizations would want to tag, track and protect.

IT companies are now broadening the perimeter of operations. Important business data can be accessed by employees from home and on their mobiles with policies such as “Bring Your Own Device” (BYOD) becoming increasingly prevalent. These companies often work with critical data from the clients; hence their server and data centers need to be safeguarded from unauthorised access. RFID systems allow seamless entry and exit of company’s assets and restrict unauthorised access to key servers and data centers.

In a huge IT and ITeS organization, there could be over 100,000 assets. Research shows that if RFID is deployed to track these assets, the annual labour cost savings would exceed $150,000. This cost saving carries forward to subsequent years and goes on forever. Hence, RFID investments lead to significant returns and value over time.

RFID systems also enable to arrest any corrupt practices at entry and exit points and safeguard from tampering of technology assets. There is utmost transparency and accountability at all times as RFID systems can track and monitor all assets within seconds. This particularly helps IT companies that have set up huge development centers in SEZs, hence they are prone to sudden inspections and compliance checks. Companies such as Verizon already track their IT assets worldwide using RFID technology.

Healthcare:

Healthcare is among the fastest RFID adopters globally. The benefit of implementing RFID in hospitals is immense as it enables hospitals to focus on a greater cause – treating patients well and saving lives in a cost-effective manner.

Asset tracking and management in hospitals benefit immensely by use of RFID. About 20% of a hospital’s mobile assets (on average) are lost or stolen during their useful lifetime. The average cost works out to more than USD 3000 per item. Also, 75% of the time for maintenance is spent searching equipment. Hospitals typically over-stack up to 40% of spare inventory to mitigate the risk of running short of equipment during emergency. RFID can solve all these problems and ensure significant savings for hospitals without adversely impacting patient care. The savings can eventually be passed on to the patients to enable more people to afford better treatment.

Another area where RFID significantly benefits hospitals is in patient tracking and management, wherein a smart RFID device accessible by a mobile interface helps doctors and nurses to ensure perfect administration of medicines to patients at the right time. The hospitals are also able to track and manage documents and files of patients better and thus, ensuring seamless and effective treatment. Several hospitals all over the world have embraced RFID. Progressive hospitals in India such as the Apollo group of hospitals, and the Tata medical centre have been pioneers in leveraging RFID. The power of RFID in improving healthcare is such that even progressive Muncipal Corporations like the BMC are looking at introducing RFID based Asset Management in their hospitals.

Hospitality:

There is a latent demand for safe and secure hotel accommodation all over the world. The fact that start-ups like Airbnb are gaining serious momentum is testimony to this. With pilgrimage, medical tourism and leisure travel on the rise, safe, secure and reputed players in hospitality would be in great demand.

For the budget hotels to survive and compete with international counterparts and tackle disruptors in the space like Airbnb, leveraging RFID has become the need of the hour. With smart RFID based locks and energy systems, the customers are assured that their belongings are safe in hotel rooms hence enhancing the perception of safety. This leads to more people opting to stay at budget hotels that offer great service and helps the sector to flourish. The linked energy management systems also enable hotels to bring down their electricity costs. The “audit trail capture” feature of these locks helps to keep a check on any illegal use of rooms for nefarious activities and subsequent loss of both brand image and revenue. With the use of RFID readers, tracking and management of hotel’s assets can be done seamlessly and any unwarranted loss of assets can be kept in check. Hotels, after implementing RFID technologies, have seen a reduction in the inventory shrinkage from a 10% to 66% of the common shrinkage which leads to considerable savings in cost, enhances service efficiency and improves the bottom line.

Dolphin has introduced smart, RFID powered and energy efficient locks namely Aster, Sleek and Vidala that enables the budget hotels to offer the same sense of safety and security as luxury hotels at half the cost. The demand for these locks among the luxury properties is also catching up with hotel chains opting for Dolphin’s RFID powered locks and security systems. By assembling and marketing these locks and energy systems in India, Dolphin is giving a serious boost to our honourable Prime Minister Shri. Narendra Modi’s “Make in India” initiative.

Why Dolphin?

Dolphin RFID is one of the leading RFID service providers in the world with over 14 copyrights, 3 patents, and its own proprietary JAVA based middleware that can integrate with any core system irrespective of the sector or industry. With a network spanning 6 continents and a clientele comprising Forbes top 20 companies, Dolphin has been creating disruptive innovations, which has helped large organization and SMEs alike.

While Dolphin is on track to be a world leader in end to end RFID solutions, our larger mission is to empower all industries, especially across these five sectors, to leverage RFID and create disruptive business models for the larger good.

I hope all companies, be it large corporations or SMEs, embrace RFID in 2017 and give their businesses a better chance to succeed and prosper.

The post 5 sectors which will see impactful RFID disruption in 2017 appeared first on Dolphin RFID.

Today, the apparel and footwear industry is not just looking at technology for operational efficiency, it is increasingly interested in augmenting the customer experience by leveraging technology.

Shopping Redefined

Do you have to go to a shop today to buy what you need? Or is it delivered home and you pay from your mobile phones with just a click? Today, the apparel and footwear industry has to be equally appealing at the online marketplaces as at its stores. Omni-channel presence is of paramount importance and the experience for customers across channels has to be seamless.

Operational Enhancements = Customer Delight

I will focus on operational enhancements owing to RFID implementation in the Apparel and Footwear industry. Over the last five years, the use of RFID has seen tremendous growth in the Apparel and Footwear industry. The two major factors responsible for this are the realization that technology can add value throughout the supply chain and the rise of channels (internet, mobility, marketplaces) for consumption of these products.

There are definite perceivable advantages in using RFID technology and I would like to discuss them in the succeeding paragraphs.

Better Inventory Accuracy:

The inventory accuracy in normal operations of a manually run inventory management system or a barcode run system can be as low as 60% going to a maximum of 75%. The use of RFID enhances the accuracy to about 95-99%. This ensures that there are no stock outs, better production planning and management, optimum utilization of warehouses, better managed supply chains and most importantly, delighted customers.

Reduction in Cycle Count Time

The process of physically checking the inventory is usually done either once or twice a year. Each time this activity is undertaken, it takes many hours, even days at times. However, the results are still never accurate.

In contrast, an RFID based stock can be checked daily, within a matter of hours. All you need is a person with a handheld RFID reader. This optimizes the labour cost, enhances inventory accuracy, reduces shrinkages due to complete visibility of stock and hence enhances the entire supply chain planning and associated costs.

Reduced Inventory Carrying Costs:

With better inventory tracking, management and accuracy in count, the inventory can be rationalised and hence reduced. The production can be aligned with the consumption and hence inventory is maintained to the minimum. This reduces the inventory storage and carrying costs and hence contributes to a healthier bottom line.

Reduced Receiving Time:

With customers preferring to try out various omni-channel options available to them, the expectation in terms of delivery has also gone up. With RFID tagging, stocks needn’t be checked manually at every point along the supply chain. Thus, the time taken to order and receive the goods is drastically reduced. This reduces stock-out situations and also minimises lost opportunities for product sale. This results in enhanced operational efficiency and improved bottom line – both very critical parameters.

Improved Conversion Rate.

With drastically reduced stock outs and total visibility of the stock at all levels i.e. shop floor, back stores, distribution centres and the factory warehouse, there will never be an instance where the customers has to turn back because the right size or design is not available. If this is not customer satisfaction, then what is?

Increased Sales:

With total visibility of stocks, better managed supply chains and optimum inventory, the sales are bound to increase and hence the revenue. Studies with various retailers such as American Apparel, Bloomingdales , Marks & Spencer etc. have shown that the increase in sales after RFID implementations has been in the range of 4% to 21%.

Prevention of counterfeiting:

One of the major benefits of using RFID for branded products is the prevention of counterfeiting. With the advantage of unique identifier numbers, counterfeits can be easily identified and eliminated from the roots thus enhancing the brand value of the products. This is especially beneficial as it stops the counterfeit from getting through and reaching the customer. If it does, you will not only lose a customer for life but he may also influence a number of other loyal customers through the use of social media and other forums. Hence, by eliminating counterfeit products, RFID technologies enable to avert a potential PR crisis.

Theft prevention:

Shrinkages in the stock due to shop lifting by customers and also by the staff can be almost eliminated by use of RFID. Unlike the traditional EAS systems, UHF RFID tags serve both the purposes – inventory management at store shop level and also the EAS activity. Any unauthorised removal of stock from the stores is immediately detected and identified thus acting as a deterrent.

Data Analytics and strategic decisions:

If the data from RFID tracking is collected and studied, it can reveal trends, patterns and insights which can further improve operational efficiency and enable to make better strategic decisions. Big Data analysis is the future for the Retail industry in general and Footwear & Apparel in particular.

Implementation of RFID

While the advantage of implementing RFID for Apparel and Footwear industry entities is evident, it is important to get it done in a structured and phase-wise manner.

The following steps will enable seamless RFID implementation:

1. You should choose a company who has proven capabilities, is cost-effective and can implement RFID in a structured manner
2. The company can first do a limited proof of concept (POC) covering the delivery centre and a couple of stores
3. Once the processes are identified and implemented in a couple of stores, the lessons can be then be used to roll out the RFID over the complete network of the brand.

We, at Dolphin RFID, provide end-to-end solutions in RFID. Through the above steps, we can ensure a seamless RFID implementation for companies in Apparel and Footwear. We also provide best in class after sales service through the life cycle of the product. If you think RFID is the way to go, please do reach us out.

The objective of this blog and some of my subsequent ones would however, be to educate the users across industries on the benefits of RFID technologies. If you come across ambiguities while considering RFID for your business, I would be happy to have a detailed discussion.

The post Advantages of using RFID in Apparel & Footwear Industry appeared first on Dolphin RFID.