Internet of Retail

INTERNET OF RETAIL To illustrate the point, let's follow a pair of shoes in a department store as it makes its way up the retail supply chain and to the consumer. Just like everything on the Internet is connected, so too is retail. It wouldn't be called the "retail supply chain" if it wasn't interconnected in some way. However, the "links" to this "chain" are the sophisticated technology found in every step of the retail process. SHIPPING RECEIVING :9 The manufacturers ship the pair of shoes, The package containing the pair of shoes is then delivered to along with 3,000 other pairs, to the retailer distribution center. The shipment is made up one of the stores. of many smaller packages, each with a different bar code label that designates which store it should go to. 1 Workers at the back of the store will scan the bill of lading using a mobile LADING device which will indicate that the 1 WORKERS SCAN THE BARCODE LABELS on each package using a merchandise has been received. mobile device which tells them where 2 All of the shoeboxes are then unloaded and given a UPC code. the package is destined to go, whether it's to a store or to a storage While some will go on to the facility for a future delivery. sales floor, most will be moved to the stockroom. 2 WORKERS PRINT OUT A Clothing exports worldwide were worth $431 BILLION in 2011. "MOVE LABEL" using a mobile printer and stick it on each package before they are loaded All of the countries in the EU imported a total of $164 BILLION worth of garments in 2010. into the next shipment. THE UNITED STATES is the biggest single importer of apparel with imports valuing from $26 BILLION IN 1990 TO $88 BILLION IN 2011. CHINA is the biggest global exporter of apparel with exports valuing from $9 BILLION IN 1990 TO $129 BILLION IN 2011. 3 Before it's ready to go, a bill of BILL oF LADING lading is printed by a desktop printer for the freight carrier. USA CHINA PRODUCT IDENTIFICATION & PRICE LABELING RE-PRICING & SHELF-EDGE LABELING The pair of shoes make it on to the sales floor. Before they are put on the display shelf, they need a label not only to identify the product Sometimes, the prices of certain items can fluctuate from day to day. Let's say the price tag of the pair of shoes raises by $1 on this particular day. but to also give it a price. 1 Using a handheld device, the 1 Store employees are equipped with mobile printers with store employee scans the UPC code on the shoebox and prints 5.80 handheld terminals that can out an RFID (radio frequency make repricing shelf-edge 45.40 identification) bar code. REID labels easier. RFID The embedded RFID codes can Recently, stores in Europe have be scanned by handheld readers begun experimenting with digital that keep track of which shoes shelf-edge labels which can 45.50 are on display, where they are instantly change prices with a placed and which ones may need stroke of the keyboard. to be pulled from the stockroom. 45.50 Barcodes have an excellent track record of accuracy. THERE IS ONE ERROR IN EVERY 10,000 SCANNER READS. of shoppers surveyed said they were able to recall more items in the end caps. A 2011 global survey 44% found that more than THAT'S 16% OF RETAIL SHRINKAGE $19 BILLION is due to internal errors, which may be due to improper product labeling and identification. LOST! MOBILE CUSTOMER SUPPORT CONNECTING FITTING ROOMS One particular customer, Amy, really likes Amy finds that the original size US 7 shoes fit the pair of shoes and wants to buy them. her the best. She decides to buy them. Before The shoes are a US size 7 (note: UK-5, she checks out, she sees a skirt she'd also like EUR-38), but Amy finds it that sometimes, to purchase. Amy goes into the fitting room to try it on but upon second glance, she's not sure shoes that are a size 7.5 fit her much better. She wants to try on both to make sure. she likes the color. If only she could a second However, she doesn't see the same brand of opinion without leaving the fitting room? shoes at 7.5 on the display shelf. A store employee can scan the RFID barcode on the 1 With connected fitting rooms, store employees are only a call shoe with a handheld device button away. They are able to and quickly see in a mobile oh bring Amy the same skirt in tablet that the shoes are many different colors. However, available in a size 7.5. stores are also placing digital SZE screens inside the fitting room. If a customer has additional questions about the shoes 2 Amy can now look through (for example, about the material or where it was several color options and receive recommendations for manufactured), the answer complementary garments or will also appear on the tablet accessories without leaving the after scanning the item. fitting room. LINE BUSTING LOYALTY CARDS However, the line to check out at the Before Amy pays for the shoes, the store counter is long because it's Black Friday. associate asks her if she would like to enroll in their store's loyalty program. Amy agrees. Luckily, a store associate is there and equipped 1 Loyalty programs are one way $45.50 retailers can reward LOYALTY CARD with a hand-held device customers for repeat ready to process the sale AMY H. business. The store associate and print a receipt. $45.50 is able to input Amy's information on his mobile This concept is called line tablet and print out a AMY H. busting and improves customer customized loyalty program service by eliminating long card (with her name on it) in waits. It's already practiced by a matter of minutes. retailers like Apple, JCPenney and Nordstrom. When she's ready to pay, the store associate can swipe the Estimates say that a high-end retailer with loyalty card on the tablet. AMY H 10 POINTS 50 STORES, producing $525 IN SALES PER SQUARE FOOT, could generate $1.2 MILLION in additional annual sales by replacing three check out counters with mobile payment technology. FOUR OUT OF FIVE Americans belong to at least one retail loyalty card program. A study says that North American mobile payment technology hardware and software sales will total $2 BILLION BY THE END OF 2013. WEDDING REGISTRY KIOSK SELF-SERVICE KIOSK PRINTING After Amy is done paying for the shoes, she spies a wedding registry kiosk. That reminds her about her friend's upcoming nuptials. The friend just happens to be registered at this department store. With a self-service kiosk in the store, the customer is able to sift through the wedding registry, pick out an item and print out that item's information. In addition, a self-service kiosk can generate coupons. It's another way to enhance customer service without extra labor. : -25% 5% BUY REGISTRY Airlines in the U.S. saved In 2010, there were an estimated $3.50 28.2 MILLION UNITS of self-service technologies GIFTS every time a self-service installed, including check-in was used. self-service retail kiosks. According to a recent survey, Self-service kiosk transactions will be worth more than 66% of people in the UK want $1.3 TRILLION in 2013. The number of self-service kiosks in self-service at the the United States and Canada is checkout. 1.2 MILLION. ШOO VALUE FOR VALUE FOR RETAILERS CUSTOMERS For retailers, technology, specifically mobile, For customers, it keeps them more engaged in the increases productivity of the whole supply shopping experience, especially after a quick scan chain. No longer do workers waste time of an RFID code, the store associate is equipped with $25 more information about the product that they can walking long distances to and from a centralized computer and printer. provide. In addition, because it's more accurate, it Customized loyalty cards provide a more personalized makes inventory management, both in the experience while line busting using mobile technology front and the back of the store, more efficient. leads to speedier checkouts and happier customers. 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