VDC Research Reveals Need for Retailers to Embrace Real-Time Inventory Visibility Solution

White Paper from VDC Research Reveals Need for Retailers to Embrace Real-Time Inventory Visibility Solution to Drive Operational Efficiencies and Profitability

VDC Research Group (VDC) is a technology market research and strategy consulting firm that advises clients in a number of technology markets. Using rigorous primary research and analysis techniques, VDC helps its clients identify, plan for, and capitalize on current and emerging market opportunities. To learn more about VDC, visit www.vdcresearch.com.

Recently VDC released a compelling white paper "Chaos in the Retail Cosmos," sponsored by Sensormatic Retail Solutions details the acute requirement for improved inventory visibility and management on the retail floor, representing retailers' best opportunity to make meaningful improvements to their efficiency and profitability. As the title of the paper suggests, the global economy continues to struggle through one of the most chaotic fiscal climates in history. VDC's research reveals the benefits retailers realize by investing in item-level RFID inventory management solutions to overcome operational challenges and the requirements for achieving the highest possible ROI.

According to Tom Wimmer of VDC, "Out-of-stocks, misplaced merchandise, shrink and vendor fraud are ongoing challenges for retailers that can adversely impact sales and profitability. Given the current economic outlook, retailers need to consider investing in a new breed of inventory management solutions that are capable of addressing these challenges head-on, while enhancing the customer's shopping experience and creating opportunities to capture incremental revenue."

Investments in improving item-level visibility can provide retailers with immediate benefits according to VDC's analysis. When carefully staged and managed, with the cooperation of trading partners, increased item-level visibility can lead to material improvements in planning, forecasting, merchandising and execution, creating a viable source of competitive differentiation: item-level intelligence.

According to the January 2008 study run jointly by IHL Consulting Group and RIS News, "retailers in the Americas lose $93 billion annually to out-of-stocks." - Greg Buzek, president, IHL Group

One retailer experiencing the benefits of item-level visibility is Boekhandels Groep Nederland (BGN), the Netherlands' largest book retailer. According to Jan Vink, CIO for BGN, We participated in this important industry research to share our experience implementing item-level RFID within our stores. With the deployment of the TrueVUE RFID platform, we realized an increase in inventory accuracy from 65% to 97.5%, while reducing our receiving process to less than 20 minutes. Our investment in item-level RFID has created opportunities for us to reduce inventory carrying cost, and enhance revenue capture with each customer visit." The Sensormatic Solution, powered by the TrueVUE™ RFID platform, is offered by ADT. In focusing on the requirements for successful implementation and ROI generation, the paper recognizes the importance of partnering with suppliers and integrators that have the technical and commercial capabilities to deliver, deploy and manage these solutions with or for their customers.

VDC recognizes that many vendors now have the technical expertise required to meet retailers' immediate requirements for item level management in a cost effective manner, but maximum ROI hinges on understanding and addressing the commercial requirements of all stakeholders. The very best solutions harness the item-level intelligence provided by these systems to inform and empower deploying companies, their trading partners and ultimately their customers.

VDC presents a framework for successful deployment of item-level inventory management solutions using case studies to demonstrate the incremental benefits tech savvy retailers are deriving through thoughtful planning and execution. Interested in learning more? For a complimentary copy of the white paper visit www.sensormatic.com/cp/VDC_WhitePaper.aspx.

For more information on Sensormatic Item Level Intelligence visit www.sensormatic.com/Products/RFID/RFID_home.aspx.