The Warehouse Limited partners with IBM to investigate the use of RFID to improve stock availability for customers
The Warehouse Group Limited has selected IBM as its lead partner to undertake a proof of concept to explore how Radio
Frequency Identification (RFID) can be used to improve stock availability for customers through enhancing its supply
chain processes, particularly in-store stock management. This is believed to be the first significant retailer-led
initiative of its kind in Australasia.
Alien Technology Corporation, a leading provider of RFID solutions, is providing RFID readers & tags and initial field applications engineering support. Saito Group will provide RFID printers and RFID labels.
In August 2004 The Warehouse (TWL) established a cross functional RFID team led by the Information Services department.
"During late 2004 and early 2005 we built an extensive understanding of RFID theory, RFID in retail, opportunities
within TWL and the current capability of the Australasian market to support RFID programmes of work," says The Warehouse
Chief Information Officer Owen McCall .
In April 2005, The Warehouse RFID team undertook a 'check and confirm' trip in North America and Europe. The team met
with a variety of hardware vendors, service providers and leading global retailers in both the US and Europe.
"We believe RFID in retail is real. Standards and the cost curve are driving the reality closer to wider consumption and
the leaders are learning by doing," says Mr McCall. "We have evaluated a number of potential uses for RFID across our
organisation and have focused on in-store stock management, which is the application we believe will provide the
greatest benefit to our customers at this point in time."
The Warehouse selected IBM as the lead partner for the proof of concept due to IBM's strong global commitment to RFID
and a strong local presence. The proof of concept will utilise IBM's expertise in RFID consulting along with IBM
software and hardware.
IBM NZ Wireless Practice Leader Brent Menzies believes that The Warehouse's proposed Retail RFID model is the first and
most progressive of its kind in Australasia. "We are optimistic that The Warehouse will see a significant return on
their investment in RFID through being able to offer improved service to its customers and drive improvements to supply
chain efficiency and capability."
Alien Technology Corporation was chosen due to its industry leadership position and ability to support New Zealand
standards. Andrew Berger, VP International of Alien Technology commented "we have been working closely with The
Warehouse, IBM and Saito to deliver promising results from the proof of concept activity. This has reinforced our belief
that RFID can enable significant service improvements for customers of The Warehouse."
If successful, the proof of concept stage will be followed by a pilot in 2006 to further refine how and where RFID can
be used by The Warehouse to improve supply chain execution and improve customer service levels.
The Warehouse team was led by Alan Mayo, Group IT Architect, and Caleb Nicolson, Supply Chain Programme Manager.
ENDS