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C&A increases inventory accuracy with Checkpoint RFID

Clothing retailer C&A has improved inventory accuracy from 70 to 95 percent and increased sales by more than 5 per cent by introducing Checkpoint Systems’ RFID solution in all European stores and distribution centres. With the project, C&A won the ’Best RFID Implementation in Retail’ award at this year’s RFID Journal Awards.

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In March last year, C&A completed the large-scale rollout of RFID at over 1,300 stores in 17 European countries and at its distribution centres. To ensure a smooth implementation with minimal disruption to daily operations, the company worked with Checkpoint Systems to develop an implementation plan for all locations over a period of three years. This provided the project partners sufficient time for change management and to adapt store operations to the new processes.

The clothing company uses the latest version of Checkpoint’s RFID inventory management software, ItemOptix. Suitable hardware solutions complement the solution. For example, the company has fully equipped its distribution centres with Checkpoint RFID tunnels. The systems enable seamless shipment validation and generate ASNs (Advanced Ship Notices) for more efficient logistics processes.

RFID increases transparency

C&A attaches an RFID label to every single item. This enables the company to precisely track every product movement throughout the entire product life cycle. Thanks to real-time inventory counts, it stays always informed about current stock levels. Replenishment is automated. This helps to optimise availability of goods on the sales floor.

For better control of goods distribution, the technology enables seamless tracking of product movements between different locations. The solution automatically updates inventory levels and makes write-offs. This ensures that data is always correct and up to date. At the POS systems, RFID scanning ensures greater accuracy and a faster checkout.

Fewer out-of-stock situations

According to the project partners, the RFID solutions, combined with the implementation of an EPCIS repository based on GS1 standards, have brought significant benefits. Thanks to real-time transparency of stock levels, inventory accuracy has increased from 70 to 95 per cent. This higher accuracy helps stores to restock faster and more efficiently, which has led to fewer out-of-stock situations.

Optimised supply of goods from distribution centres to sales outlets helped to avoided bottlenecks, resulting in a sales increase of over 5 per cent. Hans Peter Scheidt, Delivery Lead Tech – Merchandise Visibility at C&A, commented: “The implementation of RFID has revolutionised our inventory management, as it provides us with real-time transparency and significantly increases operational efficiency.”

More time for customers

The company can now much more accurately process shipments from distribution centres to stores and transfers between locations. Employees need less time to search for products and can focus more on customer service. The RFID system also supports omnichannel delivery. It ensures that customers receive the products they want at the right time and in the right place, thereby reducing cancellation rates. At checkout, the technology reduces waiting times and ensures a better customer experience.

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Joachim Pinhammer

Joachim Pinhammer supports retail and technology companies with consulting and marketing expertise. He was Senior Analyst and Research Director Retail Technology at the London-based analyst group Planet Retail. Prior to that, he was the global marketing director for the retail division of Wincor Nixdorf (now Diebold Nixdorf). Joachim Pinhammer is a regular speaker at events organised by Messe Düsseldorf (EuroShop and EuroCIS), the EHI and further industry conferences. His reports are regularly published by trade magazines and online retail industry media.

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