THROTTLEMAN AND BYBLOS, CUSTOMERS OF AVERY DENNISON RFID, DEMONSTRATE THE BENEFITS OF RFID TECHNOLOGY

Published 31st October 2008

Avery Dennison sponsors RFID study tour demonstrating radiofrequency identification technology in use at Byblos and Throttleman retail and distribution centres

Lisbon, 30 October 2008 – Avery Dennison, the leading global manufacturer of labelling and identification materials, has launched two radiofrequency identification (RFID) projects in the Iberian Peninsula, both for retailers who have completed the pilot test phase and are now using RFID as a management system.

Avery Dennison has supplied the RFID labels, printers and coders that are needed in order to integrate the RFID technology with all the products sold in the Lisbon-based bookshop Byblos, and the Throttleman fashion chain in Portugal.

Last month, Avery Dennison sponsored an RFID Study Tour in Portugal organised by RFID integrators Sherpas and Creativesystems. The tour included site visits, where attendees were able to talk with users of RFID technology at both the main Byblos bookshop and one of Throttleman’s retail outlets in Lisbon, as well as one of the Throttleman distribution centres in Porto. The aim was to inform other companies interested in using RFID of the applications available for the retail sector in the Iberian Peninsula.

RFID Sherpas was represented by Kay Marshall, and Creativesystems by Francisco Melo during the two day tour. Miguel Martins from Throttleman and Rui Gaspar from Byblos also attended to discuss their experiences in using RFID technology.

By using RFID technology to identify over 350,000 books, games and DVDs at its new shop in Lisbon, located at the Amoreiras 3300m² shopping centre, Byblos has integrated RFID to improve service levels and convenience for customers and employees.

Rui Gaspar told attendees on the tour, that the technology providers made the changeover to the RFID system in a mere 100 days. Currently, the whole bookshop, including bookshelves, products, cash desks, and access doors, is managed with RFID technology. Thanks to this system, the shop itself has become the Byblos warehouse, and a separate warehouse is not needed.

Additionally, by using this tracker system, customers can easily find all the information about the products they are interested in. By simply taking an item labelled with an Avery Dennison RFID tag to one of the information points, the customer can view it on an interactive touch screen.

Rui Gaspar, Byblos’ Chief Operation Officer, explained:

“The RFID system means that Byblos always has the correct product available, and can find it in the place indicated, when it is needed by the customer. As well as enhancing the shopping experience, this system means that no sales are lost due to a lack of stock, which previously may have negatively impacted on 20% of sales.

“By using Creativesystems and Avery Dennison’s RFID solution, we have managed to reduce stock by 30%, and cut down the time spent at the cash desk and stocktaking by 65%, therefore increasing sales. Stocktaking is now done very quickly, on a daily basis, and with zero error.”

Those attending the tour were able to see how the fast RFID-enabled cash desk, compares with items carried by the customer when they leave the shop. An added advantage of the RFID system is if the customer exits the shop with an item tagged with an identification number not registered as sold, the RFID reader will activate an alarm.

Throttleman, one of the companies setting standards in the world of fashion, has been using RFID technology to manage its chain of suppliers for more than two years. The Avery Dennison’s Service Bureau, which has a production site placed very close to Throttleman’s manufacturing plant in Asia, will label approximately 80% of Throttleman’s next collection with RFID tags, making it possible to apply them at source.

Thanks to RFID technology, Throttleman has reduced delivery time from 5 days to 24 hours, stock at its central warehouse by 60%, and delivery delays from 21% to a current rate of 0%.

Miguel Martins, Director of Logistics at Throttleman, commented:

“We have decided to use RFID technology because it is easy to integrate with our existing logistical processes. It immediately reduces delivery times and increases reliability and precision in the control of stocks. RFID also introduces the idea of cross-docking, allowing us to send items from the Avery Dennison production centre in Asia directly to the shops, reducing the quantity of stock kept at the warehouse.”

Those attending the tour were able to see first hand all of the advantages of operating the RFID system at the Throttleman distribution centre, as well as finding out about the new “improve your shopping experience, thanks to RFID” concept, which the Company started this year when it enabled this technology at the Throttleman retail outlets.

In addition to making stocktaking easier, this new concept provides total precision in terms of product information and availability of the products at the shop. Furthermore, the “improve your shopping experience, thanks to RFID” concept incorporates the Magicmirror™ application, the innovative and interactive RFID mirror created by thebigspace, marketed by Avery Dennison and integrated in Throttleman by Creativesystems.

The “magic mirror,” which Throttleman has already installed in its outlet in Cascais, provides the customers with information about the garment that they are trying on, the availability of other sizes and colours, as well as items of clothing that may go well with the chosen product. It also allows them to ask a shop assistant equipped with a Personal Digital Assistant (PDA) for another item of clothing, without having to leave the changing room.

During the study tour there were live real-time demonstrations of two of the most ambitious RFID systems currently enabled in the Iberian Peninsula, and in which Avery Dennison and Creativesystems play a major role. Several Spanish companies have shown an interest in this technology or have already started to use it, which, as demonstrated by Byblos and Throttleman, definitely offers them some interesting benefits.

Carlos Gimeno, Director of information and logistics management, Kiabi, Spain commented on the Study Tour:

“This has been a very positive initiative to see in situ how the RFID logistics management and RFID retail solutions and its benefits are already a reality. The possibility to share the experience and learn from the companies who have applied this technology has really been extremely interesting.”