How FAD International Transformed Fashion Retail Inventory Across 50+ Stores Using Acube RFID
In managing stocks for many retail stores, inventory management is a major issue for today’s retailers. Any inaccuracy in stock counting, late stock replenishment, counting mistakes made by people manually and low visibility of items can have direct effects on revenue generation, customers’ satisfaction and overall business profitability. As far as larger fashion retail organizations that operate in several different locations go, inventory management is even more important.
FAD International, a top-rated fashion retailer in the GCC with more than 50 stores located in different regions of GCC, encountered all these problems while growing its retail network and decided to seek help from Acube Infotech in managing their retail inventory through RFID solution implementation.
The following case study demonstrates how the Acube RFID system assisted FAD International in improving their inventory management process.
About FAD International
FAD International is an established retailer in the fashion retail sector operating various fashion and lifestyle brands from their retail stores located within the malls and retail outlets in the Middle East region. The retailer had more than 50 retail stores and a huge amount of inventory volumes, hence the need for a powerful and smart Retail Solutions application.
The retailer was dealing with many SKUs such as clothing, shoes, fashion items, handbags, and seasonals. The manual management of the inventory was not efficient anymore.
Challenges Faced Before RFID Implementation
However, prior to implementation of the RFID technology, there were various issues that the company experienced in its operations.
1. Errors with Inventory Records
The company used barcodes and manual systems for inventory management and counting, and inventory management accuracy varied among different stores. There was inconsistency between physical inventory and inventory in ERP.
2. Inventory Counting Was Inefficient and Time-consuming
Counting took several hours from employees’ working time. During the counting period, the operation of stores stopped, and there was an extra need for manpower.
3. Lack of Stock Visibility for Management
Management was not able to see where stocks were moving among the branches, warehouses, and shelves within each store.
4. Out-of-Stock Products
Sometimes popular products were out of stock although their inventory was available within ERP systems.
5. Inefficiency of Omnichannel Retail Operations
Customer requirements changed, and omnichannel retail operations required the availability of live inventory information.
Why FAD International Chose Acube Infotech
Based on the assessment of several Retail Solutions vendors, FAD International concluded that Acube Infotech was the best choice due to its vast experience in providing RFID-based Retail Inventory Management solutions for fashion retailers operating in the UAE and GCC regions.
Acube provided:
- Total RFID solution implementation
- RFID tagging and coding service
- Hand-held RFID readers
- Fixed RFID readers and intelligent gates
- Retail Inventory Management software
- ERP and POS Integration
- Inventory visibility across multiple stores
- Stock monitoring
This scalable and flexible solution was well suited for FAD International’s growing retail business.
Acube RFID Solution
A custom-designed RFID Retail Inventory Management solution was developed by Acube Infotech that was specifically made for fashion retail businesses.
Individual Item-Level RFID Tags
Every fashion product was tagged with individual RFID tags with unique identification numbers, thus ensuring traceability of each item through the entire supply chain network and even in the retail store.
Centralized Inventory Management Solution
The inventory management system created by Acube Infotech had an integrated dashboard from which information about the following could be obtained instantly:
- Available inventory
- Product movements
- High movers
- Restocking requirements
- Transfer of products between stores
RFID Handheld Reader
Handheld RFID readers were used by the staff members for performing quick inventories. This is not possible using conventional barcode readers since hundreds of items can be scanned at once without necessarily seeing them directly.
Smart Receiving & Dispatch
There were RFID readers at receiving and dispatch stations within warehouses, and these helped automate inventory checks. Shipments into and out of the warehouses could now be authenticated automatically.
ERP & POS Integration
The RFID system was integrated with FAD International’s ERP and retail point-of-sale systems.
Implementation Process
The implementation of this solution was done in phases so that operations could continue as smoothly.
Phase 1 – Test Rollout
This pilot rollout of the RFID system was completed at selected stores to gauge its performance and effectiveness.
Phase 2 – Staff Training
Acube offered training to the warehouse, management, and retail staff to ensure proper use of the system.
Phase 3 – Full Rollout
With the success of the RFID pilot project, the system was rolled out in all the more than 50 stores selling fashion apparel.
Phase 4 – Reporting and Analytics
This entailed adopting analytics capabilities in order to help make effective inventory management and business decisions.
Achievements Realized With the Use of RFID
FAD International has managed to enjoy the following benefits from the use of RFID technology:
1. Inventory Accuracy of 98%+
Near real-time inventory accuracy has been attained by FAD International at all locations.
2. Quick Stock Audits
Stock audit time has decreased by over 80%, where tasks previously requiring several hours to complete were now being done within minutes.
3. Higher Shelf Availability
Incorporating real-time stock visibility helped the store team members in restocking faster and avoiding situations of being out-of-stock.
4. Better Omnichannel Services
A Retail Inventory Management System enabled by RFID has allowed FAD International to provide customers with click and collect service, ship from store, store-to-store transfers, and online inventory management.
5. Lower Cost of Operations
Automation has saved costs because there is no need for manual inventory handling and inventory counts due to automation.
6. Increased Security
RFID systems helped with stock tracking and minimized instances of stock loss and misplacement.
Business Impact
The use of RFID technology helped in establishing an intelligent business environment in FAD International.
The advantages included:
- Improved inventory management
- Efficiency in operations
- Effective decision-making
- Satisfaction of customers
- Increased sales potential
- Improved visibility in all retail environments
Successful completion of this project also paved the way for future expansion and digitization in the retail department of the company.
Why Is RFID Important for Fashion Retail?
The reason why RFID is important for fashion retailing business is that there are large quantities of items involved and changing inventories. Barcode systems cannot keep up with the pace of operation that modern retail requires.
RFID-based Retail Solutions can assist fashion retailers in:
- Improving inventory accuracy
- Stock tracking in real time
- Lowering the risk of stock loss
- Improving the replenishment process
- Increasing the quality of customer experience
- Omnichannel retailing
- Operational efficiency
With increasing customer demands, RFID is becoming indispensable for fashion retailers.
The success story of FAD International’s RFID transformation shows how an advanced Retail Inventory Management system can help increase operational efficiency within a big retail network.
Collaborating with Acube Infotech, the company has managed to successfully modernize their fashion retailing with the help of innovative RFID Retail Solutions.
With the implementation of RFID technology, Acube Infotech helped FAD International make many business changes, including quick and more accurate stock counting, increased transparency of processes, etc.
Other companies wishing to transform fashion inventory operations should consider utilizing the advantages of advanced RFID solutions.