Executive Briefings

Lululemon Finds RFID Useful in Tracking Product Throughout Its Supply Chain

Global athletic apparel company lululemon reports that it has boosted its in-store revenue by deploying a radio frequency identification system at all of its stores to track its products' movements as they arrive, are placed on display on the sales floor and are sold. The system has increased the company's inventory accuracy to 98 percent, says Jonathan Aitken, lululemon's RFID program director.

Lululemon Finds RFID Useful in Tracking Product Throughout Its Supply Chain

The company's ability to access RFID-based inventory data and choose to sell goods online or in-store accounted for 8 percent of e-commerce revenue for the quarter, said Stuart Haselden, lululemon's CFO.

By adopting RFID, lululemon strove to reduce the amount of time that its store employees spent counting inventory, as well as increase merchandise visibility within each store, thereby enabling shoppers in the store and online to find what they seek, at the location where they need it.

To date, lululemon has already tagged 3.5 million items at its three distribution centers, as well as at a third-party warehouse. Its suppliers tag another 6.7 million units annually with tags provided by Avery Dennison.

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The company's ability to access RFID-based inventory data and choose to sell goods online or in-store accounted for 8 percent of e-commerce revenue for the quarter, said Stuart Haselden, lululemon's CFO.

By adopting RFID, lululemon strove to reduce the amount of time that its store employees spent counting inventory, as well as increase merchandise visibility within each store, thereby enabling shoppers in the store and online to find what they seek, at the location where they need it.

To date, lululemon has already tagged 3.5 million items at its three distribution centers, as well as at a third-party warehouse. Its suppliers tag another 6.7 million units annually with tags provided by Avery Dennison.

Read Full Article

Lululemon Finds RFID Useful in Tracking Product Throughout Its Supply Chain