RFID technology is a non-contact tag identification technology. It was born in the 1950s and was initially used by the Air Force to distinguish between the enemy and ourselves in a fierce air battle. Since then, the technology has matured and costs continue to drop. Since the 1990s, it has been widely commercialized and used in industries such as railways, highways, agriculture and industrial automation. After 2000, RFID technology began to gradually penetrate the retail industry. Wal-Mart invested heavily in 2005 to establish a complete RFID logistics system, which greatly promoted the improvement of the RFID industry chain. In recent years, with the emergence and rise of concepts such as "Internet of Things" and "new retail", RFID technology has once again shown tremendous potential for growth. Especially in the traditional retail and electricity business both encountered bottlenecks in today's development, RFID seems to have become the two selected spontaneous "straw." So, why RFID has such a huge attraction for the retail industry, let us find out.
Inventory visualization
Inventory visualization refers to a management objective that provides complete real-time visibility into inventory status. This concept evolved from Toyota's Kanban management and has now become an indispensable cornerstone of lean management across all industries. The existence of RFID technology to make this concept in the retail industry has become a reality.
RFID technology with non-contact read, batch processing and other features, can greatly improve the inventory of inventory efficiency. According to statistics, the traditional manual manual counting method can handle an average of 200 pieces of goods per hour. After using RFID technology, the figure is increased to 14,000 pieces / hour, and the efficiency is improved by 70 times. The error and repetition are greatly reduced, and the accuracy is also obtained Great upgrade. As a result, the store can regularly frequent inventory or set up in the store several fixed RFID reader way, real-time inventory of goods in the store to eliminate the chance of loss due to out of stock. At the same time, the time it takes for the clerk to inventory the goods can also be significantly reduced, giving them more time to receive their customers.
RFID can also bring a lot of improvements to the stock shortage that is prevalent in the retail industry. Research at the Harvard Business School shows that 8% of the retail industry is out of stock for a long period of time, causing an annual loss of just over $ 69 billion in the United States. According to Kurt Salmon's speculation, in the size and color of a wide range of retail apparel, the extent of the stock shortage may be more serious, or even up to 15 to 20%. According to a survey conducted by ABI Research, such as the introduction of RFID technology, it is possible to anticipate the types of out-of-stock items in advance and remind the shops to replenish the stock of the shops and the warehouse timely and in appropriate quantities, reducing the stock-out rate by 60-80% Growth may reach 3 to 10% (depending on the substitutability of the goods to float). Europe's world-renowned fashion brand stores across the board into the RFID technology, the shop out of stock problem has been fundamentally resolved, an average of each store sales increased by 4%, the annual sales of 2.5 billion US dollars to achieve growth.
In addition to addressing storefront outages, RFID can also help increase the product's average unit retail price (AUR). The traditional store management can not frequently inventory the goods, resulting in a large number of goods stacked in the warehouse did not even have access to the sales process. According to survey data, nearly 30% of the goods in the apparel industry are not "discovered" until the clearance sale, which is a tremendous waste. If this part of the goods can be properly replenished when out of stock, the average unit retail price will increase 3 ~ 5%.
Omni-channel Retailing
Through real-time inventory visualization management, retailers can achieve the goal of omnichannel retail with higher precision. Omni-channel retail, the most direct understanding is the physical and digital sales channels organic combination, such as online delivery orders within the store, and then for example, online store to buy experience. With respect to omnichannel retail, most retail companies are focused on customer flows and information flows, thinking of how to break through the online and offline barriers and reduce the loss of customer resources to other channels. Few realize that The importance of logistics. However, only accurate, real-time inventory visualization management is a solid foundation for omni-channel retail. This is because two key actions for omnichannel retail - online in-store pick-up and in-store deliveries - all require retailers to know exactly what quantities of merchandise in which stores are guaranteed by inventory visualization . If you can clearly grasp the stock situation in the store, shop staff even have the opportunity to sell the goods does not exist in the store to the guests.
There are many examples of how RFID technology can promote omnichannel retail. A fashion brand in the United States also sold its physical storefront as a back-up online shopping delivery point, boosting online sales by 30%. For another example, Nordstrom, a high-end department store chain in the United States, achieved an online sales growth of 39% after consolidating an online and in-store inventory management system. In addition, through the unified management of inventory by RFID technology, the surplus stock in one place can be forwarded to other shops, which can both relieve the unsalable situation and increase the overall selling price.
Improve the demand plan
The visualization of the stock status enables the shop to achieve high-precision, real-time cargo replenishment. Further, manufacturers can make more accurate material procurement and distribution operations by reference to the inventory information in the early stage of material requirements planning (MD). This will further improve inventory levels, reduce sales, and increase profitability. Science of demand planning management is expected to help stores in the 4 to 5% increase in turnover, while reducing the level of 1% of the library. Restock, transfer cargo information accuracy
Use dynamic display technology to promote real-time consumer and product interactions
Combined with dynamic display technology, RFID can show guests the details of their products and their stores at any time, or push information that may be of interest to guests based on their purchase history and preferences to enhance their sense of participation and experience, And increase the chance of cross-selling. In addition, dynamic display technology can not only provide information to customers, but also create some refreshing applications. Such as UNIQLO and other businesses to launch the "fitting mirror", the guests through a simple button operation you can see the mirror in the body of their clothes changed to different colors, both novel and interesting, but also eliminates the need to repeatedly wear and tear off the trouble.
According to Kurt Salmon's survey of several boutiques, these fun, personalized services can increase the lead-in rate by 40-60% and the cross-selling probability by 15-25%.
Enhance anti-theft function
According to University of Florida research shows that the retail inventory losses of more than 370 billion US dollars each year. In view of this situation, we can import RFID technology to accurately monitor a single product, record the transfer of records of various products, has achieved the purpose of preventing the loss. Of the 120 stores in the U.S. fashion industry that have already introduced RFID technology, the accuracy of inventory information reaches 99.8% and the inventory loss is reduced by 55%.
The current introduction of RFID technology costs are declining, the return on investment is also getting higher and higher. The realization of "omni-channel retail" and the enhancement of interaction with consumers are two of the essential aspects of modern retail
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