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TRANSCRIPT
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Mario BeltramiMay 2016
The Magic of Macys:Leveraging RFID for
Pick to the Last UnitOmni-Channel Fulfillment
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$10+ Billion Annual
Revenue
Market LeadershipR&D Spend: $275 Million
ProvidingCustomer Value
Through Innovation
Strategic CustomersGlobal Support
Scale & Experience57,000 Employees
// Global Leader in Technology and Innovation
Global ReachPresence in 94 countries
50 Direct; 44 Indirect
Copyright 2016 Tyco. All Rights Reserved.
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Tycos Key Enterprise Solutions
Fire Protection Integrated Security Solutions
Electronic Article IntelligenceHigh Theft SolutionsSource Tagging SolutionsTraffic IntelligenceVideo Based In-Store Analytics
RFID- Enabled Solutions:// Inventory Intelligence
Integrated Store Performance Professional Services
Retail Store Performance & Loss Prevention
Supply, design, installation, monitoring, maintenance and auditing services for:
Fire alarm and detection systemsWater based fire suppression: Sprinkler, deluge & water mist systemsSpecial Hazard Systems: Foam, clean agent and inert gasMass notification systemsEmergency fire responseMechanical products including valves, piping and coupling for engineering and design projects
Life Safety
Supply, design, service & installation of:
Access control / BiometricsIntrusion detectionPerimeter protectionVideo surveillanceSecurity MonitoringCommand & Control (PSIM)RFID, Real Time Location Systems (RTLS)Vehicle & Gate ManagementDuress & notification systems
// Respiratory protection systems// Thermal imaging products// Gas and flame detection // Personal protective
equipment// Compressors// Communication Systems
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One Company with a Portfolio of Flagship Brands
FIRE PROTECTION
ELECTRONIC SECURITY
RETAIL
LIFE SAFETY
Copyright 2015 Tyco. All Rights Reserved.
GLOBAL INTEGRATED SOLUTIONS AND SERVICES
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$1B Business Unit
Market Leadership
SolutionPortfolio
Global Customers
Scale &Experience
With nearlyof excellence in retail, we have the expertise to understand your needs, the technology to meet them, and the comprehensive technical, professional and support services to ensure your long-term success.
Tyco Retail Solutions // Industry Impact
GlobalReach
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IBM RFID Prediction Nine Years Ago
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IBM RFID Prediction Nine Years Ago
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Agenda
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SummaryWelcome to MacysAligned with the Customer, Prepared for GrowthThe ChallengeThe SolutionMacys Pick to the Last Unit ProgramThe Results
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Summary
Increased sales & margin
Reduced markdowns
Enhanced customer experience
Industry: Department store
Solutions: RFID Inventory Visibility
Benefits: Improved inventory accuracy & visibility
Inventory optimization
Omni-channel fulfillment
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Welcome to Macys
Established 1858, New York City Retailer with nearly 800 stores + online at macys.com Sales of over $28B Its famous flagship located at Herald Square in New York
City is known as the Worlds Largest Store, with over 1.1 million square feet of retail space
Shopping experience: the customer is paramount, as in the brick & mortar stores as online
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Aligned with the Customer, Prepared for Growth
Macys is committed to helping its customers shop anywhere, anytime, and anyhow they choose, by leveraging the entire inventory of the company to satisfy demand: buy anywhere, fulfill anywhere model
M.O.M. My Macys merchandise assortments, Omni-channel integration, and Magic Selling customer engagement
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You dont want to make decisions
based on bad data
Peter Longo, Macys President of Logistics and Operations
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The challenge
Inventory degradation occurs at a rate of about 2-3% a month stating
Item-Level RFID: to help ensure inventory is optimized across the entire enterprise
By working with Tyco Retail Solutions and leveraging the TrueVUE RFID Inventory Visibility platform, Macys was able to establish a foundation of inventory accuracy in key replenishable product categories across all 800 stores
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The solution
The overall changes to inventory management in support of this omni-channel strategy have enabled Macys to reduce $1B of inventory from its stores
The company realized that brick and-mortar stores could be their greatest asset for single unit orders, essentially functioning as robust and flexible warehouses to utilize the full assortment of owned inventory. With item-level RFID, Macys can focus on assortment and service while using their existing inventory to address fulfillment demands
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Gather new insights into the sources of fraud, shoplifting and internal theft.
Achieve real-time inventory visibility to improve inventory accuracy and operational efficiency.
Attain increased shopper visibilityby capturing and analyzing customer traffic patterns in and around the store.
Complete In-StoreVisibility Solutions
Connecting Data and Devices and across all Solutions Sets to a Single Integrated Platform
Reducing Theft andImproving Store Operations
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Macys Pick to the Last Unit Program
P2LU for omni-channel fulfillment attempts to ensure that the last unit of an item in any store is able to be easily located and made available for sale
The success of this strategy is possible due to the inventory accuracy and visibility enabled by RFID technology
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The Results
The use of RFID has been a game-changer for Macys in driving inventory accuracy which is critical to execution and omnichannel fulfillment
In addition to sales lift on regular and first markdowns with the rollout of RFID, Macys has reduced inventory costs by lowering interim inventory requirements by one third
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Macys RFID Journey
Inventory count 1x / year
Inventory accuracy deteriorates 2-3% per month
Inventory accuracy 60-70%
BEFORE RFID
1x / year & can cycle count up to 24x / year
Achieve nearly 99% accuracy w/annual inventory
Annual inventory accuracy 95%
RFID categories out performed non-RFID categories with avg. 10% sales lift
WITH RFID
B2F Back to Front, Sales Floor Replenishment
Increased sales and margins, reducing MDs
1/3 reduction in basic stock required on-hand
Improved display compliance from avg. 65-70% to nearly 100%
P2LU Pick to the Last Unit
Leverage 15-20% of store inventory that exits in single units
Omni-channel readiness enabling $1B reduction in store inventory
Sales lift on regular & 1st MD merchandise
BEYOND REPLENISHMENT
Peter LongoMacys, President, Operations and Logistics -January 2015
RFID is your foundational air supply
to deliver an omni-channel promise.
Source: GS1 panel discussion -- January 13, 2015 at NRF Big Show
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Age of Amazon:Challenges & Opportunities
Source: RIS / Gartner Retail Technology Study 2016
1. Developing personalized marketing capabilities 51%
2. Network and IT systems security 47%
3.Leveraging social media (for sales, CRM, hiring, customer service, etc.)
46%
4.New payment technologies(EMV, contactless, mobile, etc.)
45%
5.Expanding unified commerce (omnichannel) initiatives
44%
Top 5 major strategies over the next 18 months
Top 5 challengesover the next 3 years
1. Customer data security 49%
2. Retiring legacy systems 46%
3.Optimizing digital commerce as growth channels
39%
4. Application integration 35%
5. Optimizing stores as a growing channel 29%
Investments in technologies that improve the retailers ability to meet customer
expectations, exploit innate strengths, overcome weakness and disintermediate
others, will move the needle. Make wise choices.
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Technology Will Continue to Disrupt the Store
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Mario BeltramiRFID Presales Support
[email protected] +39 328 4208713
Thank You
Diapositiva numero 1Diapositiva numero 3Diapositiva numero 4Diapositiva numero 5Diapositiva numero 6IBM RFID Prediction Nine Years AgoIBM RFID Prediction Nine Years AgoDiapositiva numero 10SummaryWelcome to MacysAligned with the Customer, Prepared for GrowthYou dont want to make decisions based on bad dataDiapositiva numero 15The challengeThe solutionDiapositiva numero 18Macys Pick to the Last Unit ProgramThe ResultsMacys RFID JourneyAge of Amazon:Challenges & OpportunitiesTechnology Will Continue to Disrupt the StoreThank You