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April 30, 2013 RFID Journal Live
EPC Update at
“The Con1nuing Journey”
About VF ¤ Apparel and Footwear Supplier ¤ Manufacturing and Sourcing based model
¤ Channels: Wholesale, Retail and eCommerce
¤ More than 30 brands:
Agenda ¤ Wholesale program update
¤ Compliance……compliance…….compliance
¤ Retail possibliBes
¤ What Could Be Next: Supply Chain????
History of RFID at VF
¤ Program initiated in 2004; 2005 startup ¤ Focus on Carton Compliance for major retailers ¤ Working to identify all potential ‘supplier’ benefits ¤ Two approaches implemented:
¤ Print and encode ¤ Encode in-line, fully automated
¤ Compliant with Gen II ¤ Total tags consumed to date: VF is approaching 3 million end of 2012) Gen I/ II
Wholesale Program Update
RFID Whitepaper-‐ ExecuBve educaBon on the technology Tag consump;on ¤ 2012 was a significant expansion of programs across VF Brands
with our Retail partners ¤ In 2013, we will see some pull back from one retailer affecBng our
tag consumpBon ¤ 2014 will see a re-‐engagement and growth with current and
additonal partners, and a push into owned retail Our Challenges ¤ Lack of SC benefits to date ¤ Retailers start-‐up with complete tag programs drives unique
requirements versus the commodity of UPC type tags. ¤ SBcker type tags have very good results… ¤ … but, challenges exist with embedded hang tags and fallout
(10-‐15%) during print/encode Next Steps ¤ We will push into the use of TID serializaBon to conBnue to drive
down tag costs. Pilot in mid-‐2013, then expand. Good retailer acceptance.
¤ Expand TID serializaBon in 2014 with owned manufacturing ¤ Begin automated outbound data capture in our DCs for
compliance
Jeanswear 61 M tags
Jeanswear
Outdoor and Sportswear
7 M
15 M
2012: 80-‐83M
Decrease in Current Programs
Incremental Growth
2013: 70-‐ 72 M
Re-‐Ini1ate Programs Expand Retail
7
2011 Consump1on
2012 Consump1on
2013 Projec1on
2014 Projec1on
2014: 95+ M
VF EPC Tag Consump=on and Projec=ons
What’s Next at VF?
q Sourced tagging of a Brand is the most cost efficient q The Bpping point for a Brand’s DC tagging program is 45% to 50% of its product.
q Retail usage will help a Brand’s adopBon q We will look to the Supply Chain:
q Automated inbound and outbound data capture for Jeanswear
q Replacement of our mulBple UPC tag environments, and improved sortaBon and pick pack for Outdoor
q Can we couple this with expansion of voice picking technology?
What’s Next at VF? continued
q Count, count, count……where are we counting? q Accuracy of data before it leaves the plant and after it
leaves the plant. q Whole new world for EDI and data exchange…. q And it’s accurate too!
q Imagine confirming right tickets on right garments. q Imagine non stanard garment tracking and what
occurs to it….. q Imagine regulatory compliance and tracking data….. q Imagine the endless possibilities for data……
