INDUSTRY FOCUS
M&S achieves 99.5% inventory accuracy across its retail stores with Retail & Asset Solutions' RFID Hybrid Stocktaking Solution
M&S has long been an advocate for the use of RFID in retail from pioneering its use in the UK since 2004. Although the majority of their clothing and home stock is now RFID enabled (95%), M&S had predominantly used barcode scanning to reset their stock files on a 6-monthly basis.
M&S were looking to further increase their stock file accuracy through the use of their existing RFID deployment. Improving stock file accuracy would contribute towards greater on-shelf availability which would ultimately benefit M&S’s customers. Integrating RFID data and processes with their existing systems was considered early on in the project and involving a technical solutions provider, Retail & Asset Solutions (RAS) was key to the project’s success.
RAS has just developed the RFID + Barcode Hybrid stocktaking solution, which would deliver one combined stocktake file. The resultant file with combined data would be formatted to the client’s specification, and include variance reporting through the START cloud-based dashboard.
RAS piloted the solution with M&S in five test stores and measured the outcome against a traditional barcode stocktake. The findings overwhelmingly pointed to an increased stock file accuracy using the RFID scan process, with further trials validating the success of the first pilot.
A larger scale phase of 70 stores was scheduled for a hybrid count as part of the Summer 2019 stocktake schedule. Stores which had a barcode stocktake during the Summer 2019 were then scheduled to receive a hybrid count in Winter/Spring 2020 culminating over 200 further stores benefiting from the solution. Following this phase, RAS introduced additional RFID reporting and state of the art Denso SP1 RFID handheld sled hardware in order to aid external auditor sign off, as well as vastly increase the stock file accuracy in comparison to the traditional barcode count.
Combining the RAS START management system and the RAS RFID solution (powered by RFKeeper) enabled RAS to scale the RFID Hybrid Stocktake Solution nationwide utilising their dedicated RFID teams.
Through the delivery of this cost-effective hybrid counting, M&S have realised savings through lowered resource requirements and reduced external stocktake costs. The solution has also facilitated faster counts and crucially it has also achieved their original objective of significantly increasing its stock file accuracy.
M&S have identified many other points throughout its operations to explore where RFID can continue to deliver benefits, including extending this RFID enablement to its entire supply chain which would include and benefit its manufacturers and distribution centres.
“RAS now counts all the Clothing & Home stock holding using RFID once a year for M&S, with a 99.50%+ accuracy, and at a cost that is less than half that of a traditional stocktake. The deployment has supported a further improvement in our stock file accuracy which helps drive our omnichannel retailing capabilities. Improving our operational efficiency and accuracy while driving down costs is even more critical given the current retail challenges.”
Ben Hodges | Systems & Operations Manager, Clothing & Home Operations, M&S
