rfid investing for vfs future. agenda who is vf corporationwho is vf corporation history of rfid at...
TRANSCRIPT
RFIDRFIDInvesting for VF’s FutureInvesting for VF’s FutureRFIDRFIDInvesting for VF’s FutureInvesting for VF’s Future
AgendaAgenda
• Who is VF CorporationWho is VF Corporation
• History of RFID at VFHistory of RFID at VF
• Current RFID Focus – Customer ComplianceCurrent RFID Focus – Customer Compliance
• VF’s Future RFID DirectionVF’s Future RFID Direction
®
You may not know VF Corporation, but you know our
brands . . .
We Are VFWe Are VF
World's largest apparel supplier
$5.2 billion in sales
150 countries/52,000 employees
Strong brands with leading market shares
Multiple channels of retail distribution
Financially strong and conservatively managed
We are VF
VF CoalitionsVF Coalitions
Je a n sw e ar G lo b a lIn tim a tes
O u tdo or Im a g ew e ar S p o rtsw e ar
VF Corporation
•Wrangler
•Lee
•Riders
•Rustler
•Brittania
•Timber Creek
•Earl Jean
•Gitano
•20X
•Riggs
•Hero by Wrangler
•Maverick
•H.I.S
•Old Axe
•Vanity Fair
•Vassarette
•Bestform
•Lily of France
•Tommy Hilfiger*
•Curvation
•Gemma
•Lou
•Bolero
•Intima Cherry
•Variance
•Belcor
•Red Kap
•Bulwark
•Penn State Textile
•Horace Small
•Lee Sport
•CSA
•Chase Authentics*
•NFL Red*
•NFL White*
•VF Solutions
•E. Magrath
•Byron Nelson*
•Harley-Davidson*
•JanSport
•Eastpak
•The North Face
•Napapijri
•Kipling
•Nautica
*licensed
Thumbnail of VF’s Supply ChainThumbnail of VF’s Supply Chain
• 500 million units produced annually500 million units produced annually– across 500,000 SKUsacross 500,000 SKUs– by over 1,000 owned/contracted factoriesby over 1,000 owned/contracted factories– 1,000’s of miles from customers1,000’s of miles from customers– delivered to 43 DCsdelivered to 43 DCs– shipped to 47,000 retailers in 25+ countries shipped to 47,000 retailers in 25+ countries
and over 240,000 householdsand over 240,000 households– on-time, within selling seasons -- not yearson-time, within selling seasons -- not years
History of RFID at VFHistory of RFID at VF
• Goal to achieve improvement in internal inventory Goal to achieve improvement in internal inventory controlcontrol
• Started investigating RFID in 1993Started investigating RFID in 1993• Developed tag specifications in 1995Developed tag specifications in 1995• Identified 3 vendors that could meet specifications Identified 3 vendors that could meet specifications
in 2000in 2000• Cost of tags exceeded benefitsCost of tags exceeded benefits
– $0.35 cost per tag in 2000$0.35 cost per tag in 2000– Need between ¼ and ½ billion tags per yearNeed between ¼ and ½ billion tags per year
• Waiting for tag cost to drop to deployWaiting for tag cost to drop to deploy
Current RFID FocusCurrent RFID FocusCustomer ComplianceCustomer Compliance• Goal to comply with Wal-Mart and other RFID Goal to comply with Wal-Mart and other RFID
tagging requirementstagging requirements– 3 coalitions with 3 different WMS systems3 coalitions with 3 different WMS systems– 7 distribution centers7 distribution centers
• Project stepsProject steps– Evaluate current supply chain processesEvaluate current supply chain processes– Identify any potential cost benefitsIdentify any potential cost benefits– Research technology solutions availableResearch technology solutions available– Identify RFID tagging solutionIdentify RFID tagging solution– Implement RFID tagging solutionImplement RFID tagging solution
VF’s Future RFID DirectionVF’s Future RFID Direction
• Tactical compliance with customer initiativesTactical compliance with customer initiatives• Strategic migration to item level taggingStrategic migration to item level tagging
– Internal inventory controlInternal inventory control– Replacement of Electronic Article Replacement of Electronic Article
Surveillance (EAS) tagSurveillance (EAS) tag– Quality controlQuality control– Product returnsProduct returns
• Tag prices must drop for item level tagging to Tag prices must drop for item level tagging to become feasiblebecome feasible
RFID ChallengesRFID Challenges
• Technology issuesTechnology issues– Tag production capacityTag production capacity– StandardizationStandardization– Tag costsTag costs– Read reliabilityRead reliability
• Cultural issuesCultural issues– Public acceptancePublic acceptance– LegislationLegislation– PrivacyPrivacy
SummarySummary