RFID-Enabled

Solutions for

Retail

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Why RFID-Enabled Solutions For Retail?

Loss Prevention

Merchandising

Store Operations

• Reduce theft/shrink by 15% - 75% • Reduce internal theft

• Provide item-level shrink visibility • Ensure accuracy of deliveries

• Facilitate faster replenishment of stolen

merchandise

• Enable authenticity verification

• Identify near real-time source of shrink

• Increase inventory visibility and

accuracy to above 99%

• Increase inventory ROI

• Reduce OOS conditions by 10% - 30% • Facilitate Omni-channel retailing

• Increase on-shelf availability by

10% - 30%

• Enable store order fulfillment &

improved ATP

• Enhance shopper experience and top-line

revenues by 5% - 10%

• Reduce customer wait time at POS by

10% - 25%

• Increase conversion rates by

10% - 50%

• Increase cycle counting efficiency and

accuracy

• Improve returns processing • Automate manual processes & reduce

error

* Based on actual Tyco deployments as well as published industry results

** Shrinkage reduction does not include deployment at front end of store, benefits from shrink visibility to address internal,

vendor and administrative losses

Mobility • Empowering shoppers & sales associates with mobile devices

• Mobile check-out and payment

Omni-channel Retailing • Enabling the customer to shop anywhere, anytime, anyhow

• Fulfilling orders from any location

Redefining the Role of the Store • Optimizing the supply chain (including the store)

• Leveraging store inventory for online order fulfillment

• Improving store experience through technology

The Customer Experience • Ensuring a consistent, convenient, satisfying shopping

experience through all brand touch points

• Making the store environment more engaging and enjoyable

The New Retail Power Duo: CMO & CIO • Emergence of CMO as the new IT buying center and owner

of the customer experience

• Experience: driven by CMO and enabled by CIO

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Retail Trends

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Inventory Visibility Benefits –

Scale and Importance Benefits Quantified By: // Sales uplift vs. control stores

// Reduced store OOS position

// Reduced store sales floor OOS position

// Stock ledger vs. RFID vs. manual count

// Workflow studies

// Decreased shrink

• Shrink Visibility

• Reduced

Shrinkage From All

Sources

Higher Margins

Loss Prevention

• Reduced stocking

labor

• Reduced

receiving labor

• More efficient

POS

Higher Margins

Operational

Efficiency

• Quicker and more

accurate product

locator

• Increased

$/transaction

• Omni-channel

benefit

Sales Uplift

Customer

Satisfaction

• Reduced sales

floor OOS

Sales Uplift

On Floor

Availability

• Improved store

replenishment

• Reduced safety

stocks

• Reduced store

OOS

• Omni-channel

foundation

Sales Uplift

Higher Margins

Planning

and Allocation

Foundation: Inventory Accuracy

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TRS RFID Solution Areas

Backroom Visibility Use Cases

• Receiving

• Store transfers

• RTVs

• Direct customer fulfillment

• Document preparation

• Reporting & reconciliation

Management of item-level

receiving and shipping

transactions.

On-Floor Visibility Use Cases

• Mobile inventory counting

• Mobile item search

• Misplaced item location

• Back-to-floor restocking

• Replenishment to store

• Inventory reporting

Visibility to item-level inventory on

the sales floor and across the

enterprise.

Transaction Visibility Use Cases

• POS sales, exchanges and returns transactions

• Tag read, write and detach

• Item inventory status and disposition

• Transaction reporting

Visibility to item-level inventory

on the sales floor and across the

enterprise.

Front End Visibility Use Cases

• RFID entrance/exit read

• EAS alarm & functionality

• Shrink visibility & reporting

• EAS management reporting

Front-end RFID read capability

for inventory, shrink and

merchandising management.

Value of TRS RFID Solutions

• Identification of vendor shortages

• Immediate ASN reconciliation and mis-

shipment identification reducing loss

• Automation of manual processes reducing

time, cost and error

• Increased inventory accuracy at the time of

receipt and shipment

• Real-time inventory availability

• Improved stock ledger accuracy

• Reduced fitting room theft

• Improved inventory accuracy

• Near real-time identification of missing items

• Visibility to misplaced items

• Proper accounting of loss values

• Maximized on-floor availability

• Improved inventory accuracy

• Real-time visibility to replenishment

• Reduced out-of-stocks

• Increased sales and revenues

• Foundation for omni-channel retailing

• Efficient inventory counting

• Enhanced shopper experience

• Stock balancing optimizing store space and

inventory

• Audit trail of stolen items returned for credit

• Combatant for POS “sweet-hearting”

• Reduced internal theft

• Elimination of fraudulent returns

• Improved financial transaction processing

• Trigger for replenishment of items sold

• Improved stock ledger accuracy & COGS

• Real-time inventory update & visibility

• Reconciliation with system of record

• Expedited POS transactions

• Enhanced shopper experience

• Accurate & efficient return processing

• Increased visibility to items stolen and loss

event details

• Visual deterrent to shoplifting

• Decreased internal theft

• Increased alarm intelligence & configuration

• ORC combatant

• Timely replenishment & restocking of lost

items

• Reduced out-of-stock conditions

• Enhanced shopper experience with reduced

false alarms

• Corporate RFID project leverage of current

investment

Loss Prevention Merchandising Store Operations

Shrink Visibility - Redefining Security with

Information-Based Loss Prevention

The Problem

*Results compiled over a three month period at a leading global retailer

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• RFID Inventory Management

programs typically focus only

on the selling floor, resulting

in a blind spot at the store exit

• Traditional EAS does

a good job of covering exits,

but lacks clear visibility into

item-level product data

• Video Surveillance needs to

be integrated to exception

events to provide meaningful,

actionable data

Store Intelligence and Integration Platform

EAS with

Enhanced

Detection

Inventory

Visibility

Video

Surveillance

Shrink Visibility

• Adaptive

deployment of

LP personnel

• Theft trend

analysis by

store/region/

country/

time/day/season

• Selective

alarming for key

loss categories

• Reduced nuisance

alarms; improved

LP Staff

responsiveness

• Indexed video

surveillance

details items,

times and

locations

The Results*

Shrink Visibility Exception Report Example

Combining RFID with EAS and video surveillance provides detailed

insight into exception events at the store exit.

Shrink visibility provides detailed item-level information to enable:

Tracking last place/zone where items were identified in store

Quick replenishment of missing items

Corrective action and prevention of future occurrences

0

5

10

15

20

25

30

Shrink Events at Store Exit*

Shrink Events

Item Loss

Qty

Jeans - Style 1 8

Shoes - Style 5 6

Jeans - Style 3 5

DVD 3

TV – 19” 2

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RFID Solution Components

Hardware

Services Software

• Readers

• Detection

• Hard Tags & Hang tags

• POS Pads

• Detachers

• Deactivation

• Handhelds

• Hard Tags & Hang tags

• Handhelds

• Antennas

• Readers

• Hard Tags

• Hang Tags

• Professional

• Installation

• Maintenance

• Deployment • Inventory Visibility

• Cycle Count Management

• Item Transaction Tracking

• Alarm Management

• Shrink Visibility

• Intelligence Reporting

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Front-End Visibility Diagram

FRONT END POS

PoE

Switch

RFID Reader

PoE Ethernet

PoE 802.3aT

RFID Reader

Antenna

RFID Reader

Ethernet RS485

TrueVUE

Gateway

Bi-Optic

Scanner RFID Detacher

INTERNET

Fitting Room

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On-Floor Visibility Fitting Room Diagram

Ethernet

Gateway

TrueVUE

INTERNET

Switch

PoE

PoE 802.3aT

RS485

Overhead Stereo Traffic Device

RFID Reader & Antenna

(w/Directionality)

RFID Tagging Options

RFID encoding is done when

price ticket is manufactured.

Disposable Price Tickets

integrated with RFID Tags

Reusable RFID Soft Swing

Tags

RFID encoding must be done at

some point in the supply chain

(factory, DCs, stores, etc.).

Reusable RFID Hard Swing

Tags

Reusable Dual Tech.

RFID/EAS Hard Tags

RFID encoding completed at some

point in the supply chain (factory,

DCs, stores, etc.).

RFID encoding completed at some

point in the supply chain (factory,

DCs, stores, etc.).

En

co

din

g

Req

.

Lif

e

Exp

ecta

ncy

Single use – disposable item. Multi-use (<5 times) – limited

reuses depending on material.

Difficult to automate recirculation.

Multi-use (> 5 times) - relatively

easy to automate recirculation and

validation.

Multi-use (up to 50 times) -

relatively easy to automate

recirculation and validation.

En

co

din

g

Op

tio

ns

At time of price ticket printing. • At time of price ticket printing

• Manually at factory

• Manually at DC

• Bulk encoded

• At time of price ticket printing

• Manually at factory

• Manually at DC

• Bulk encoded

• At time of price ticket printing

• Manually at factory

• Manually at DC

• Bulk encoded

Low security since tag can be

easily removed, no EAS tech.

Higher per unit cost since tag is

disposable (but coming down).

Low security since tag can be

easily removed, no EAS tech.

Low cost per use depending on

durability of tag.

Low security since tag can be

easily removed, no EAS tech.

Low cost per use.

Highest security since tag can not

be easily removed without

SuperTag detacher and includes

best of EAS Technology.

Low cost per use.

Secu

rity

C

ost

pe

r

Use

• Single use

• Human readable

• Easy encoding

• Low security

• Higher cost

• Multi-use

• Not human readable

• Supply chain encoding

• Low security

• Lower cost

• Multi-use

• Not human readable

• Supply chain encoding

• Low security

• Lower cost

• Multi-use

• Not human readable

• Supply chain encoding

• Highest security

• Lower cost

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TrueVUE Store Performance Platform

Common user interface across devices and applications.

New insights from data across multiple solution sets. New insights from

the power of “AND”

Features • “Iconized” Menus

• Role-based Dashboards

• Multi-level Reports

• Detailed Drilldowns

• System Performance and Health

• Alerts and Event Notifications

• Tyco and 3rd Party Solution Integration

Inventory Visibility Traffic Intelligence EAS Intelligence Store Execution

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Deep Functionality

• Most comprehensive inventory cycle counting capability

• Intuitive, resilient, effective, efficient, user-proof

• Advanced functionality based on extensive real-world experience

Robust Reporting

• Rich library of out-of-box reports; flexibility to customize

• Ability to clone and import to maximize insights

• Hierarchy and rollups that match enterprise needs

Ease of Integration

• Key to delivering value of RFID-enabled solutions

• Web services available for retailer and Tyco use

• Few retailer IT resources required to deploy or manage

Comprehensive Commissioning Solutions

• Simple management of standard commissioning processes

• Fail-safe processes to ensure highest accuracy

• Multiple commissioning authorities for item-level clarity, regardless of source

Enterprise Class Platform Design

• Optimized for efficient use of network bandwidth and resources

• Scheduled installs with updates automatically pushed

• Automatic configuration

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Value of TrueVUE Software Offering

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2013: The Year of Inventory Visibility

RIS News: “Item-Level RFID Critical Mass at Last”

End of

FY12

End of

FY13 Growth

Stores 1,000 2,000 100%

Recirculatable

Tags 300mm 750mm 150%

Devices 1,800 6,500 260%

Tyco RFID Momentum

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Tyco Devices in Nearly 185,000 Stores

Worldwide

Extensive, Diverse Retail Experience

Across a range of industry sectors and global geographies

From single-store deployments through

large scale, enterprise-wide rollouts

Thank You