TFG deploys RFID to spearhead 7-year Digital Transformation Strategy
The South African based retail group, TFG, has announced their continuing wide-scale RFID deployment. The group, which operates 28 brands in over 4000 stores across 32 countries, put RFID at the centre of their 7 year ‘Digital Transformation Program’ and citing improved inventory accuracy as key to their long term Omni-channel strategy.
“From an Omni channel strategy [point of view] stock accuracy is absolutely critical. We want to be able to fulfil orders across any channels and across any inventory point. The only way we were going to be able to deliver on that promise was with inventory accuracy. RFID is a huge step in that direction for us. We like to invest wisely with our partners and with our solutions”
Following an extensive six store pilot program testing technology from a number of solution providers, TFG selected ITL Intelligent Label Solutions as their global RFID inlay and source tagging supplier embarking on an ambitious 24-month roll-out program in September 2018. The first stage of deployment covered all 22 of their South African brands including Markham, Fabiani, G-Star Raw, and Sports Divisions with the remaining brands going live thereafter.
The partnership with ITL sees the global label supplier print and encode RFID labels with data uploaded from TFG onto its LabelVantage™ supply chain application. This allowed for production and supply occurring seamlessly across a number of their global service bureaus including South Africa, Mauritius, China, India, Bangladesh and Turkey with deliveries going directly to TFG’s product suppliers in region.
TFG announced a number of immediate cost savings attributed to their RFID adoption including reduced staff costs and associated stock counting expense. The retailer claims that counting stock in one of their stores now only takes three hours whereas, prior to RFID, the same activity would take the whole team two full days, incurring significant staff overtime and store closure costs.
Commenting on the deployment, TFG’s Senior Operations Business Process Manager, Martin Kurc said, “RFID allows us more time and more efficiency in reducing the physical count activity in store and releases people to do what they’ve been employed to do. Besides the data integrity and the significant increase in replenishment, the ROI on RFID is massive”.
Key Success Factors
Close collaboration combined with excellent project management and a can-do attitude were instrumental to building a successful partnership between ITL and TFG. This ensured a smooth and successful roll-out of this complex program across multiple brands within a compressed time frame.
“We are honoured and delighted to have been selected as TFG’s global RFID label supplier for this strategically critical project” said ITL’s Group COO, Chris Currie. “Working closer together, we have built on our already strong and healthy relationship forged over time. It’s been about finding solutions to challenges, building trust through always delivering on this initiative towards the future success of both parties”.
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With over 40 years-experience in labelling and ticketing, ITL is a tried and trusted supplier of RFID labels whilst also offering scalable software solutions and access to class leading hardware, all of which can be bundled together to provide seamless end-to-end integration of RFID.
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