Shrinkage Despite Security
GANT stores were losing inventory even with a robust anti-theft system in place. The cause was unknown, although management suspected employees who left between stock-taking cycles.
Liwa Trading, a retail group with more than 200 stores across the Gulf region, was losing stock from its GANT stores despite a strong anti-theft system. Technowave piloted an RFID inventory solution in one store, then rolled it out across 19 GANT stores with an in-house middleware that connected to Liwa's enterprise system.
Liwa Trading is a retail group based in Abu Dhabi, with more than 200 stores across the Gulf region. When it became aware of shrinkage in several of its stores, it looked to its long-standing technology partner, Technowave International, for a solution.
Technowave offered its RFID-based inventory tracking system, easyTRACK. After consultation, Liwa decided on a pilot run followed by a rollout for its exclusive brand, GANT, across 19 stores in the region.
Despite a robust anti-theft system, GANT stores were facing high shrinkage, and the causes were hard to see because stock was only checked once a year.
GANT stores were losing inventory even with a robust anti-theft system in place. The cause was unknown, although management suspected employees who left between stock-taking cycles.
Stock was counted once a year, which made the count a laborious job that could not be repeated at regular intervals.
A team of ten people with barcode scanners took 60 to 90 minutes to count an average of 3,000 items per store.
Goods moving from warehouse to store were scanned one barcode at a time before each carton was sealed, which slowed the operation.
Technowave, a UAE-based system integrator with more than 15 years in barcode, mobility and RFID solutions, ran a one-week pilot in a GANT store in Sahara Centre, Sharjah, and submitted ROI statistics with its proposal.
A reusable RFID pin tag, which also carries a barcode, is attached to each item of clothing and merchandise. The RFID code is linked to the product code with a single scan at the warehouse, and the pin is released for reuse at checkout.
Impinj Speedway Revolution readers with Farfield antennas are installed at the warehouse to read cartons and their contents, so dispatch data flows into the ERP and is reconciled at the store.
Technowave's software team built RFID middleware that fitted into Liwa's enterprise resource management system. The pins also work alongside the existing anti-theft tags.
For mobile reading, Technowave used the PL 3000 cross-dipole RFID handheld from its strategic partner Nordic ID, which reads tags in any orientation.
A one-week pilot in a GANT store in Sahara Centre, Sharjah, provided the ROI statistics used in the proposal.
After Liwa's approval, Technowave assembled the complete solution, including the middleware and the RFID components.
Reusable pin tags were linked to product codes in the warehouse, and fixed readers recorded cartons as they were dispatched.
Dispatched cartons were reconciled at the store, and handheld readers supported counting on the sales floor.
This video from the Technowave channel shows the GANT RFID solution built with Liwa Group, from the warehouse readers to the store.
The reduction in manpower was substantial, and the solution was then extended to other GANT stores and brands in the region.
Counting time dropped from 10 to 15 man-hours to 25 minutes for both folded and hanging items, with 100% reading accuracy.
Stock visibility increased, the sales floor stayed at 100% stock levels, and labour costs and human errors in inventory fell.
The solution achieved its goal of reducing shrinkage to a great extent, and Technowave has since rolled it out to other GANT stores and brands.
“Liwa chose the RFID technology for two main reasons: firstly, we didn't have to change much, as it sat in our operational procedure seamlessly, and secondly, the infrastructure on the security system didn't change much. Now we have accountability on pilferage.”Stylo IttoopBrand Manager, GANT
Once an RFID count takes minutes instead of a day's work, stock can be counted at regular intervals rather than once a year.
Linking the RFID code to the product code at the warehouse keeps stock data accurate from dispatch to the store.
The pin tags fit with the anti-theft tags already in place, so the store does not need a new security system.
A one-week pilot with ROI figures gave the client the evidence it needed before the rollout across 19 stores.
Liwa Trading needed to stop shrinkage in its GANT stores without relying on yearly manual counts. Technowave combined reusable RFID pin tags, warehouse readers, mobile handhelds and in-house middleware to give it accurate, fast inventory control.
Technowave International has more than 70 Auto ID professionals across the Middle East and India, and it continues to roll out its easyTRACK inventory tracking system to retail clients.
Technowave designs RFID inventory tracking for retailers, from a one-week pilot with ROI figures to a full rollout with middleware and handhelds.
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