ADT's Sensormatic solution improves inventory management

Boca Raton, Fla. – April 27, 2009 – With weak retail sales, retailers have never been more driven to seek new ways to profit, reduce costs and retain customers. One big potential source of these benefits is better management of inventory, especially in the information “black hole” of their retail floors. With a low total cost of ownership, ADT’s broad portfolio of Sensormatic RFID-enhanced, item-level intelligence solutions backed by comprehensive service delivery capabilities has helped a number of innovative retailers realize game-changing gains in their retail operations. ADT will showcase these solutions at RFID Live! 2009, April 27-29, 2009, in Orlando, Florida, USA.

Two retail pilot projects are profiled by technology market research and strategy consulting firm VDC Research Group in a recent whitepaper sponsored by Sensormatic Retail Solutions titled “Chaos in the Retail Cosmos.” These profiles reveal some of the benefits associated with item level intelligence that can be achieved by implementing RFID on the retail shop floor: increased supply chain optimization, incremental revenue generation and improved customer satisfaction.

VDC cited some of the benefits associated with item level intelligence solutions from a pilot project undertaken by ADT using Sensormatic item level intelligence solutions with a leading book retailer:

• Increased inventory accuracy from 65 percent to 97.5 percent and expedited physical inventory audit process to less than four hours
• Replenished close to 75 percent of its inventory with semi-automated inventory replenishment system
• Enhanced store revenues by almost 15 percent compared to stores lacking the technology, thanks to an immediate order capability enabled by item-level management Similarly, VDC reported results from a similar project undertaken by a leading European department store:
• Decreased receiving time of all incoming shipments from one hour to just eight minutes – an 87 percent improvement
• Reduced physical inventory audits from 90 minutes to 20 minutes – a 67 percent improvement
• Updated information on shelf inventory levels every 10 minutes drastically reduced retailer’s potential for stock-outs

According to Tom Wimmer, director of AutoID and Transaction Automation at VDC Research Group, “Out-of-stocks, misplaced merchandise, shrink and vendor fraud are ongoing challenges for retailers that can adversely impact sales and profitability. Given the current economic outlook, retailers need to consider investing in a new breed of inventory management solutions that are capable of addressing these challenges head-on, while enhancing the customer’s shopping experience and creating new opportunities to capture incremental revenue.”

The October 2008 acquisition by Sensormatic Retail Solutions of VUE Technology, a leading provider of item-level RFID software and infrastructure solutions, strengthened the Sensormatic portfolio of loss prevention solutions and other sensor technologies. ADT, the primary delivery channel for the Sensormatic portfolio, now offers retailers complete enterprise solutions using advanced multisensory technologies in a multilayered approach to controlling shrink and optimizing operations.

This approach can help retailers worldwide accurately track goods coming from factories through distribution centers and all the way into their stores. Once on store shelves, goods can be tracked while in stock, through the point-of-sale and out the store exit to avoid out-of-stocks and maximize store profitability. To lower deployment risks and costs, ADT supports its Sensormatic solutions portfolio with comprehensive services, including consultation, system design, engineering, implementation, full post-deployment maintenance, remote diagnostics and service. If required, ADT can provide a hosted or managed RFID solution, as well.

“In today’s economic environment retailers need to consider investing in inventory management solutions for the retail selling floor that can deliver greater product availability, more accurate replenishments and more effective inventory cycle counting, “ said Jeff Bean, vice president, Retail Sales, ADT. “ADT’s comprehensive Sensormatic item-level intelligence platform combined with ADT’s global reach and service delivery capabilities are uniquely positioned to help retailers worldwide scale and execute real-time inventory visibility solutions that can help them optimize profitability, cut costs and better retain customers.”