Levi’s Brazilian Subsidiary Uses RFID Successfully

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Nancy   2017/01/02

The Brazilian subsidiary of jeans company Levi’s has deployed RFID technology for inventory tracking and control. The system is deployed by iTag Tecnologia.

Earlier this year, Levi’s Brazil decided to try to use the RFID solution in store. Brazil’s Levi’s owned a total of 78 self-owned POS stores that use the same ERP system. This year’s Black Friday, the solution was tested for the first time, this year’s sales growth of 56% over last year.

Rui Araújo Silva, General Manager of Levi’s in Brazil, said: “I believe one of the reasons for increasing sales is the quick and easy replacement of items on the shelves. I can not figure out how much sales RFID has brought because of a series of process improvements this year. At the same time, the national economic situation has also shown an obvious recovery. ”

Silva said all the signs show that RFID technology allows stores to more efficiently meet customer needs. If the company fails to deploy the technology successfully, some sales may be lost due to out-of-stock. Currently, the company sells 500 RFID tags a month, 20% of which are produced in Brazil.

Levis is using RFID to track products received from the company’s distribution center (DC) for item validation, transfer, inventory counting and security.

Companies print labels in distribution centers and attach them to all products so that companies can more easily control where inventory and goods are located. At the store, the company uses the RFID system to tally and count the items that sent from the distribution center. Cashiers also use RFID for sales, automatically marking the items sold, all in use of the labels are in line with the GS1 standard. “We use the SGTIN-96 / EPC Gen 2 encoding, the logistics chain uses the SSCC standard and the DataMatrix GS1, and the total network uses EPCIS data,” said Sérgio Gambim, iTag CEO.

In the distribution center, iTag uses Iprint middleware to check the number of items and power the SATO CL4NX printer to print GS1-compliant labels. The labeled product is placed in a sealed box, identified by an RFID channel reader, and sent to the store through the company’s picking process.

Levi’s uses Zebra Technologies’ RFID 8500 reader to link with iTag’s Android Alert mobile app for counting large or partial inventory of items in stock. In this way, operators can read and retrieve the locations and related information of item directly from the application.

At Levi’s store, tagged items are displayed in the sales area. At the time of purchase, the consumer takes the item to the cashier and the total sales process will be done with the iTag Monitor integrated with the Levi ERP system. To prevent product theft, iTtag’s theft-proof 2.0 software records the invoice numbers of all purchased items. When a consumer takes a product that has not been invoiced and does not record an invoice away from the store, the software sends a reminder to the store manager’s tablet via iTag Alert.

To help control inventory, the product code for each product is sent to Levi’s EPCIS solution at the time of warehousing. This allows staff to view the items displayed in the sales and inventory area.

The product checkout was read by using an Identix rPad UHF RFID desktop. The device incorporates a circularly polarized antenna, reducing hardware procurement costs and facilitating deployment.

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