Benefits of RFID: ASDA’s Successful Retail RFID Rollout | SML - Двуязычные субтитры
So, again, welcome, everybody.
Today, we're going to talk about the journey that Azda's gone through with RFID again.
Why don't you, Kirsty and Nathan, introduce yourself and your responsibilities at Asta.
Hi, everyone.
I'm Kirsty Bookston.
I work in the George transformation team, and accountable for the delivery of RFID and any new initiatives we look forward to in the future.
Good morning, everyone.
My name is Nathan Jennings.
I am the senior director of a transformation at Georgia Asta.
I've been working for President for about 15 years now,
so the last six or seven years, my job has been how do we really start to transform the base system.
And now we've done that,
we're now trying to understand how do we really leverage those new underpinning systems
for new technologies such as RFID and how do we really start to add value for the Azure business?
Great, and what were the compelling reasons about moving from a SKU level system to an item level RFID system inside the business of George?
So, George has had a long-term opportunity with availability and a lot of that has been driven about the way that we've grown.
So, George has been part of the Walmart family for many, many years now.
But unfortunately, we've never really been able to leverage Walmart system.
So we've always had to have slightly different systems which interact with the mains,
but wherever we've made these Compromises,
unfortunately those compromises result in Availability choices and unfortunately we've not always been able to drive the availability that we would like to into stores
So we can see that in our own numbers So we all we were aware of what was happening in the business,
but very difficult to understand But we also know that our customers feedback was that
But availability was that number one thing that they'd like us to improve upon so that
they've got size availability when they walk into our stores.
How is it impacting that?
I mean, from a standpoint of the George business as a whole.
Yeah.
How was it impacting the George business and the customers directly?
Yes, I think when you look at the feedback initially from the stores,
we talked to the colleagues about how are they using it, how are they needing to deploy the guide account, and all the functionality.
And actually they don't need to use it as much as we thought.
The great thing about RFID is it means that that product that should be on the shop floor is there all the time.
So that one way availability through shop floor, the of the business.
Great, and continuing on that vein, basically,
what were some of the hard and soft benefits that were found in the last year at the point?
I mean, it's clear that this was really the business focus was based on sales.
So we did a really thorough piece of work with Newton back,
always 10 years ago now, to understand the bottlenecks of availability in the business.
And when we did that work, we really identified areas of availability, which is in our own remit to fit.
And it is that that we talented RFID to do.
So we ran, as you know, Dean, many trials over the last 10 years.
And actually everything that we thought we could deliver, we did deliver on both the POCs, the and now right through to deliver it.
That's great.
So describe some of the responses from the different stakeholders in the business from a company.
So I think it's fair to say RFID has been the biggest piece of strategic change the George business seen in the last 10 years.
So I think it's fair to say that it's been overwhelmingly positive responses we've had in terms of the deployment,
not only from a George point of view,
but certainly from the wider Asta business from the exec down and what it started to show us,
it started to uplift the interest in the RFID infrastructure and technology.
We've had a lot of questions already from other areas of the business,
wanting to understand how the benefits of RFID can support their business as they move forward.
As you may show the video, you describe it.
So, I think this slide speaks for itself and we talk about store adoption, so the importance of engagement is paramount on this journey.
From a head office point of view,
you can see here, these are all the social media channels that we have in each of our individual stores.
And it's fair to say,
given the challenge of us being,
you know, the biggest strategic change that we've seen in the last 10 years, the colleagues really have embraced the technology.
And they've also, we started to see good shoots in terms of compliance, in terms of consistency and process driven execution.
And then from a head office point of view,
I think the wealth of data that RFI gives your business is very overwhelming to start with,
but ultimately is now enforcing and making us make more informed decisions at every point of our operating model processes.
So example, more intelligent buying, size profiling, store grading and also more, you know, accurate in terms of replenishment and allocation to our store.
So we can just go on from that.
So there's got a real clear value in the direction for the business that we will be a data-driven business going forward.
And is absolutely driving that.
So since deploying RFID we've seen great results of the sales in store.
But since then every area, every department of our business is starting to use this RFID.
We're solving supply chain problems with it.
We're highlighting shrink issues with it.
It really is a wealth inspiration of the business And at the heart,
we're trying to grow this data-driven culture as for our data science teams.
And actually,
this is really empowering that information through each of the Yeah,
I commenting from a vendor standpoint,
solution provider, we watch the Azda team really embrace that and really focus on using the data to one, learn more about your business.
And number two, learn about maybe their areas to improve it.
So more question to both of you,
just, you know, RFID is a technology, but it's used It's to to be be
And I think the social media posts that you have are good examples of that,
but maybe both of you could comment on kind of what that journey looked like as we see with other retailers
the journey of taking a team from never doing a stock count.
to now doing stock counts weekly or whatever the frequency is and and for them going through that emotional
Transition of saying this is more work or it's not or a kind of can you share a little bit about that?
I think realistically as I say,
it's the biggest strategic change that George have seen in the last 10 years So there was some hesitation and a lot of colleagues
Because it's we made the solution so simplistic for our teams to use they absolutely thrive on it
And it also now becoming competitions within regions within divisions, you know in terms of performance factors.
We've set ourselves some key Metrics that we benchmark our stores against
In terms of they get regular reporting on a weekly basis and basically they like to be sure that you know that division,
the importance now, they've really, I can't stress enough how they have engaged this technology.
But when it's like using an iPhone, that's how we really sold it in.
The fact that it's a simple,
if you can use an iPhone, you can use this RFID technology, and it seems to have done the job.
And I think there's a key point in what Kirsten said there, and about simplification.
So rather than just try and put RFI on our existing business,
we tried to understand before we deployed it, where do we need to simplify?
How do we make our business simple?
How do we make the outputs of this business simple?
So it's easy to digest, easy to create action.
And I think it's really landed incredibly well.
We've got right from the stores all the way through it to senior leadership, really using the state.
And you guys had gone through a transition at the same time of coming out of Walmart, which was interesting to observe from the inside.
And that transition was also added to the complexity of what you guys were trying to do.
So, and no comment needed because you lived through it, so we'll leave that.
From a standpoint of, you know, a lot of, there's retailers in the audience that are going through this door.
What are two to three things you would encourage them to look at based on your lessons learned?
I'll start with that one.
So for me is to have a clear packaging strategy.
That is the biggest fundamental thing that you need to get right on this journey.
So for me it was important we took the opportunity to streamline our packaging.
Obviously we had multiple tickets and stickers, hundreds of different variations.
So we actually streamlined it to use the best performing in Lays.
and reduced it down from 60 to like three different ticket sizes.
But it's the importance of making that moment in time and switching from old references,
removing them from any system and putting in the new references.
And what that does is it's mitigated any risk of stock arriving in from source that's incorrectly tagged.
So for me, that was one of our biggest achievements.
And we've seen no material impact in terms of stock arriving from source, it's fair to say.
So I'm really delighted with us taking that approach and I would recommend anyone starting
on this journey that they do really consider that as an option.
Yeah, I completely echo the point of simplification that I think we've already gone over.
I think there's another point of simplification of how are you going to use it when it gets in.
RFID does an incredible job at giving you accurate PI,
but then how do you use the output so you will find information about your business that you didn't know before.
Think about what's going to come out.
how do you talk through your leadership,
through your operational teams, et cetera, and are you really going to embed new processes to take action on the information that you see?
Yeah, I from an outsider that ultimately we were inside
is you guys did something that we've really encouraged
and that is you had one team working both the packaging and the solution at the same time.
And it wasn't two different organizations kind of pulling in their own direction and I think it really helped because
the packaging RFID tagging side of this was immediately aligned with the use cases that you wanted to use in the store.
And just from a comment standpoint, another encouragement is do those things together.
All so you've deployed in close to 500 stores.
You got people using the technology every day.
You got people that are clearly happy.
Okay, that they're doing better in their store.
They're competing with one another.
Kind of what's next?
I how are you guys looking at using the technology
and the visibility it gives you to your processes and so on as you move forward?
So, obviously phase one was always around improving our inventory accuracy point of view and also driving on the shelf availability to the customer.
I think we can safely say we've got the tick in the box there.
So phase two for us is making sure we really embed the basics for RFID.
Not only in stores, but across our head office teams as well.
In addition to that,
it's about where do we start and leverage the RFID technology for the future across speaking,
unlocking capabilities and value from the omni-channel and also store-facing environments.
So, from an omni-channel perspective,
If we want to unlock buying line, pick on store, we to enhance our George offering on our grocery home store.
We also want to, we unlocked the potential now we've got our create inventory.
We now showcase our store inventory on our website,
so if a customer can't get the item they look for,
they can search the neighbouring store,
I that has been massively received in terms of a 50% uplift in terms of cut through and click throughs to use that feature.
I think then from a store face We've got some old technology we use for Markdown application at the moment,
so we're going to leverage the existing RFID devices along with the software components and make the process
more simple so we can land and execute Markdown much better.
In addition,
we're going to look at our returns process,
so both online and store returns and how we can actually make that more seamless for the customer.
In addition to that,
we'll work collectively with SML in terms of how do we get to the next level of development on some of our core processes like movement,
MTR transfers, movement stock between stores, between supply chain.
So they're the next kind of things that we're really, really going to go after.
Yes, that's sort of a George perspective.
I see, particularly as we continue with our separation from Walmart, which is a big job as it stands today.
But once we're part of that journey,
then we can certainly see looking at these, looking at RFID on different categories across the business as well.
I think what I would say is we're, we've absolutely got a store process going down.
We're trying to create revenue streams.
But what we also need to do there is embed this data as well,
I we've said before, but how do our data team start to use this?
So fix the problems of availability in store, but now we're using RFID to tell us where the problems are within our supply chain.
So we can really start to really pinpoint accuracy,
tell us what we're So we've gone from having one availability number really in a week to seven or eight different availability numbers,
all allocated to different teams to action with actionable progress so we can understand the impact of our findings.
Yeah, it's exciting to see you guys have embraced the vision of every place an item touches a
process you think it could add enterprise value and you're on that journey to try to expand that more.
We've got a few minutes before we open it up for questions,
but one last question I have is,
we've talked about the benefits both to the people,
to the business,
to how you look share one of you each of you share one of you share basically what exactly are you
doing are you doing counts are you doing receiving replenishment yeah help them
get a little bit more practical with the the audience about what exactly how
you're using the technology today so from a George perspective there's five
fundamental processes that we use in store to maintain inventory accuracy
and location accuracy first one being stock counts we do a weekly count it's a
compulsory count that happens every Sunday before the store open And it's safe to say that has been the best compliance rate that we've seen.
They embrace that significantly from the beginning.
And we're seeing regularly over 98% plus week in week out In terms of our compliance metric there.
In addition to that, we're also receiving our deliveries in using rfid.
So we're taking our expected quantity.
And then we're receiving against that.
So both the weekly count and the delivery, we're actually making those plus or minus adjustments in real time to our master record of inventory.
So we're keeping our inventory well maintained in accurate all times.
In addition to that,
we're using a move functionality so we let the system know every time we move stock from the backroom to the shop floor and vice versa.
This just helps obviously with the next two processes that we do, so we do targeted replacement.
But having,
it's the first time in Georgia's history it's ever had location visibility by backroom and shop floor,
and this allows us to then drive top the back room to the front house,
so basically sales have come in in,
the is intelligent enough to know what's in the back and it will bring it forward onto a targeted pick list.
In addition to that, we've got a soft benefit called Stock Explorer.
This allows an colleagues with confidence to answer customer queries when they are for items in store.
Not can they see in real time what is available in their store and what location it is in,
they can also search any other store within the country and see the same level of information.
great anything to add Nathan I think she's got an old that okay I'm gonna ask one
more that is you guys you guys use George's how many units a year is sold
roughly hundreds and hundreds of millions right and so
The tag cost that goes on every item has been able to be overcome by the benefits, correct?
We hear that a lot about,
well, the cost too much, but the reality is the benefit of sales and so on were easily justified the investment on the tags and so forth.
Okay, good.
I'm going to stop there and see if there are any questions from the audience.
If you could state your name, that be helpful.
Okay.
Absolutely.
Thank you so much.
My name is tany.
I'm founder of cyclone.
We garments to post consumer services.
I'm wondering if you guys are already looking at connecting the garments you're selling to reuse, re-recycling, etc.
Through rfid.
And how are you thinking about this?
Thank you.
So we've, obviously, DPP is something that's coming down the road for all clouding products, textiles, etc.
So we are looking into DPP solutions now.
We're starting to bring these together.
So can we create a permanent record of that gum that, you know, initially it's made of, what larger that gum has been.
We are starting to,
how do we bring RFID and DPP together through So that's permanently bed on the clothing,
so we can really talk to the customer about the credentials of the product that we're selling.
Is that, yeah.
Okay.
Behind you.
Thank you.
So this is Rana from UX,
so we reached our company,
but my question was if we were putting RFID tags on hundreds and millions of products,
cost goes up, but what's the impact of that on environment and emissions, you and the carbon, that's zero.
So we From a position of research ability, the tag is still the same tag, so applying the sticker to the tag.
So we are looking to work with SML about what the long-term future that tag looks like and how do we get great transparency,
what's in that and how do we get it to a fully researchable tag?
You know, I would add that what we're seeing is what we talk about the environmental impact of the tag.
We've got retailers that are in this room that have taken 10% of inventory out of their supply chain while they increase their sales.
One took 400 shipping containers out of inventory every year while they increase their sales.
So talk about environmental impact.
We to add to that how better inventory management.
all the way back to the factories in Vietnam and Bangladesh and shipping and everything.
As a way for us we're trying to open up the way we think about sustainability using this technology.
Hi, thank you so much, Nathan and Kisty for sharing your experience and insights.
My question is about this RFID technology is being used, right?
It's mainly using being used at the stores level.
also being used on the customer side where people are able to use this data to know
some products which are not available at one of the stores they can find this product in another store.
I want to know how successful have you been to get this data being useful for the customers because I myself am a consumer I'm buying
stuff from different markets and I don't find many of the products in the
So do you really kind of check how much of the services being used by the consumers or the data?
Because it still doesn't mean to be like, it's there, but the data is there, the services are there.
But I don't find it so helpful to find whether the product is there or not.
And I think this needs to be improved a lot.
What do you think about this?
I don't know if you can measure it can you I can't I don't know if you can measure the actual usage of stock explorer in store
But certainly and you know the colleagues in store do find this is a real game changer in terms of being able to assist with
customer queries as they move forward because ultimately
years before we introduced RFID you know it would be no we don't have it but they
now have a of confidence they've got a technology in front of them that
can tell them at the touch of a button to say we do have it in the front and in
the back of house which would drive the incremental sale.
We're seeing across the board.
Consume Basically,
C and the impact because they get online and they go to an ASDA website and the probability of confidence is significantly higher knowing that that inventory table for
online has actually been updated with a count that was done Okay,
and so there's a real customer satisfaction component that goes into this as well Yeah, thank you.
Thank you for the answer I'm happy to know about it what you're doing with the RFID text by the way
I'm Nadim and also from a Aldi and I'm happy to see her and hear you.
Thank you Hi,
so my name is Katie Schurfield and I just wanted to know in terms of storm engagement which you've touched on How did you focus like the biggest training styles one board people onto that journey
more with the biggest challenges that you first?
I would say don't underestimate the size of the job in hand.
We fortunate enough to have regional change coaches who were able to deliver our And obviously then,
every store within that region came to their model store for training.
But I would also suggest that it's keeping them abreast of everything that's going on week in week out, regular updates.
Also, you know, the size of what was coming was significant.
Everything had to have a tag.
And rollout was significantly bigger.
We actually went from source tagging to go in live within nine months.
So we had an awful lot of carryover stock that we had to tag.
So we had to prepare our stores for that journey as well.
And were overlaid hours to make sure they were trained.
We gave them enough experience and hands-on technology training beforehand.
But yeah, it's one thing that I would never underestimate from an engagement point of view.
I will say that every project that we've had that's been wildly successful has taken on this champions approach where you have champions by region.
Okay, Tesco started with that, but we've seen that across the board, including Asta.
Where you have people that are motivated and champions enthusiast about the technology and they're carrying that forward Hi, I'm Natasha I work at Zulka.
I'm just keen to know how you could die RFID and with a single customer view.
It may, you know, is that helping for personalization?
Is you know, what's next and is that possible?
Personalization, but we're not at that point as yet always.
So, part of ASDA is looking at that.
So we do have our ST, which is looking at personalization, but that is looking at ASDA-wide.
So at the moment, RFID tags are just on Georgia at the moment.
So we will be able to make sure that we improve that data,
but realistically, that's a slightly separate use case, but that's the central business, yeah.
Thank you.
Okay.
Any other questions?
Hi there, I'm George Clark.
I'm Consultant.
It's actually not a question.
It was just the answer to that chap's question.
I've been through a similar program myself and I think the benefit that you guys will see,
which I have seen, is the increase in volume of available stock for customers at one point.
So if you're on your digital platform,
you've got one single pool of stock at your warehouse,
with a number of sizes that may not be available,
all of a sudden you've got availability for all of your stores,
and the volume of stores you've got is absolutely huge,
I was at Mulberry at the time and we saw sales quadruple,
right, and availability of stock was phenomenal from opening up all the stock that was available in all of our stores.
That was what I just wanted to answer.
It would have annoyed me if I hadn't have said anything for you.
Thank you.
Thank you.
Thank Unbelievable job you guys are doing because it's huge, absolutely huge.
I was interested in the implementation of it.
So mentioned it was one team that looked after the Packaging through to the implementation.
I curious how you worked with the teams or whether the Transformation team took this from end to end.
So there was the direct transformation team.
So me and my direct team, and we had bolt-ons to that.
So had some comments from packaging, from distribution, from technology.
So we all worked collectively on the program, haven't picked the right people to do the wrong thing.
job but it was very much they've all we all went on the journey together so
we didn't have any pinch points where we lost people along the way we've been
consistent in our approach having the same people in the on the same route
haven't we to been able to deliver everything that we've delivered to
date I think that's about having the right people in the right time is that it's
really bringing the stores on board yeah and I was sure from a first point.
You guys had multiple suppliers on tags.
You us on software, you had zebra on hardware, and I think you guys embraced and us all into that same team.
So the communication that was driven by Kirsty and her team was significant element of making this thing work.
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