May 27, 2005
Gillette, Wal-Mart, Levi, Michelin Share RFID Results
Chris Murphy at Information Week has written a piece that details some of the real-world ROI results that companies such as Gillette, Wal-Mart, Levi Strauss, and Michelin have experienced so far. Levi Strauss, for instance, has equipped a store in Mexico City so that every item is RFID-tagged. This allows for the store to take full inventory each morning in just 30 minutes. Levi Strauss hopes that this will reduce out-of-stock items and thereby improve customer satisfaction. On a different front, Gillette has noticed that during a recent ad promotion campaign, 38% of the measured stores did not execute correctly. On the other hand, according to RFID-EPC data, the stores that did execute correctly realized a 48% increase in average dollars per point of sale. According to Information Week:
Gillette has been among the leaders in RFID, and over the past two years it has built a business plan in which it estimates 80% to 90% of the benefits will come from collaboration with retailers. Put another way, 20% or less of the benefits will come from operational improvements it can make on its own, within its walls. "Our approach has been to launch and learn," Dubash said.
Read more: Real-World RFID: Wal-Mart, Gillette, And Others Share What They're Learning
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