Children's clothing retailer uses RFID to reduce online out-of-stocks

Feb. 12, 2014

Coccinelle, a high-end children's clothing retailer, announced it is now optimizing its inventory accuracy using RFID, resulting in a decrease of more than 60 percent in online order cancellations. Nedap supplies the RFID point-of-sale and the hand-held readers for this, along with the associated iOS app. For automatic processing of inventory transactions, Nedap's RFID solution is linked to Softwear's ERP and cash register system.

According to the companies, the total inventory in the six Coccinelle stores and in the distribution center is also the online store's inventory. In the past, differences between the administrative inventory in the ERP system and the actual inventories often led to customers being disappointed by sold-out products. To ensure customer satisfaction and improve inventory accuracy, Coccinelle decided to introduce RFID technology.

All products are given RFID labels in the distribution center so that all shipped items can be registered using !D Hand, an RFID hand-held reader; this information can be processed automatically in the ERP system and the product is then registered as "sent."

At the cash register, the RFID labels of items sold are read by an RFID POS reader that is also linked to the cash register system. In addition, store employees quickly take inventory twice each week using !D Hand. The results of these counts are processed automatically in the ERP system. Because of the 99.9 percent registration accuracy of goods received and the store counts, any differences between the administrative inventory and the actual inventory can be traced and corrected extremely quickly.

"Our goal was to reduce out-of-stocks in our web shop without having to make concessions in product assortment quantities," said Marc Bakker, Coccinelle's managing director. "After an intensive period, we have arrived at a level of extreme inventory accuracy in the physical shops, and this results in considerably fewer cancellations in our web shop."

Read more about RFID in retail.

Topics: Omnichannel / Multichannel , Online Retailing , Point-of-Purchase / POP , RFID Technology , Supply Chain , Technology

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