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RFID Aids Inventory Management for Liverpool

Mon, 01/18/2010 - 11:15am

 UPM Raflatac, Fletcher, January 11, 2010 – El Puerto de Liverpool S.A.B. de C.V., the leading retailer in Mexico with more than 78 stores and $3.1 billion USD in annual revenue, has implemented a comprehensive RFID solution for its suppliers that has delivered quantifiable improvements to its inventory management processes. The initiative, which affects more than 200 suppliers and uses 3 million RFID tags and inlays annually, is one of the largest in the country.

After testing RFID’s potential to optimize inventory management processes, Liverpool mandated carton-level RFID tagging for all of its suppliers in 2008. Liverpool decided to offer finished UHF RFID tags and inlays for sale, to provide suppliers with a single tagging solution, while improving its control of the large-scale track-and-trace program. Liverpool selected bulk volume RFID labels from Digilogics containing UPM Raflatac UHF ShortDipole RFID tags equipped with Impinj's Monza™ 3 tag chips because of both UPM Raflatac's and Digilogics' abilities to guarantee on-time deliveries of high quality, cost-efficient products that deliver exceptional performance.

“The UHF ShortDipole RFID tags and inlays provided by UPM Raflatac and converted by Digilogics are cost-efficient, high performance and extremely accurate,” says Oswaldo Romero Martinez, Liverpool RFID Project Leader. “The results we have achieved demonstrate RFID’s ability to improve volume-intensive operational processes, reducing costs due to inefficiency and errors.”

In the next phase of the project, Liverpool will require additional suppliers to tag goods at the item level; equip retail employees with RFID handheld devices to process inventory; and update POS terminals with RFID readers to streamline checkout processes. The company is also testing customer-facing solutions, such as RFID-powered fitting rooms, which enhance the shopping experience and help cross-sell and up-sell retail goods. Liverpool’s goal is to work closely with its suppliers to increase merchandise availability to near-perfect levels, increasing customer satisfaction and product sales.

“By standardizing tag use and implementing a comprehensive tagging program, Liverpool is maximizing its benefits from implementing RFID technology,” says Jan Svoboda, Sales and Marketing Director, Americas, RFID, UPM Raflatac. “The results Liverpool has achieved demonstrate this supply chain technology’s ability to streamline a wide array of operational and customer-facing processes.”

“In today’s competitive retail environment, ensuring merchandise availability is critical to maximizing product sales and strengthening margins,” says Luca Pastorello, Partner, Digilogics SA. de C.V.

For further information, please contact:

Mr Jan Svoboda, Sales and Marketing Director, Americas, RFID, UPM Raflatac Tel. +1 805 312 4679 Mr Luca Pastorello, Partner, Digilogics SA. de C.V.

Tel. +52 555 280 6647

Mr Luis Vicente Ortega, Dynamic Response Manager, El Puerto de Liverpool S.A.B. de C.V.

Tel. + 52 555 268 1265

About UPM Raflatac

UPM Raflatac, part of UPM's Engineered Materials business group, is one of the world’s leading suppliers of self-adhesive label materials and the world’s number one producer of HF and UHF radio frequency identification

(RFID) tags and inlays. UPM Raflatac has a global service network consisting of 14 factories on five continents and a broad network of sales offices and slitting and distribution terminals worldwide. UPM Raflatac employs 2,600 people and made sales of approximately USD 1.4 billion (EUR 1

billion) in 2008. Further information is available at www.upmrfid.com.

About Digilogics SA. de C.V.

Digilogics S.A. de C.V., a Mexico-based labelstock converter, creates radio frequency identification (RFID) solutions for process-intensive industries including retail apparel, government services and supply chain management, among others. The company’s mission is to become the leading RFID label provider in Mexico by developing customized solutions for industry customers that deliver exceptional quality, performance and ROI.

Digilogics’ partners include RFID manufacturers and solution integrators 5Stat, Convergence Systems Limited, Impinj, UPM Raflatac, Venture Research, Inc. and Zebra Technology Corporation. For more information, please visit www.digilogics.com.mx.

About El Puerto de Liverpool S.A.B. de C.V.

Liverpool is the Mexican department store company with the most geographical coverage in this country. It operates 78 units in three

formats: Liverpool, Fábricas de Francia and Liverpool Duty Free; manages twelve gallerias; and has 2.6 million holders of its own credit card.

Personalized customer service and constantly renewed range of articles and services have positioned the company as the chain of stores and shopping centers of choice for the Mexican family.

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