Fujitsu Installs AbsoluteSKY RFID System at Staples Business Depot

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Fujitsu Installs AbsoluteSKY RFID System at Staples Business Depot

November 6, 2007 // Published as a news service by IHS

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Fujitsu Transaction Solutions Inc. announced that the three-month installation of the AbsoluteSKY radio frequency identification (RFID) based intelliTRACKER product suite in Staples Business Depot's first store was successful.

Staples Business Depot worked with Fujitsu to install the AbsoluteSKY real-time, long-range inventory tracking system in a 37,000-square-foot store as a test pilot.

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To date, roughly 1,500 stock-keeping units (SKUs) have been tagged, and the system has been reporting inventory status and changes on a minute-to-minute basis as merchandise travels from receiving to store shelves, across retailer-defined zones and through the point-of-sale process.

According to Fujitsu and Staples, the benefits achieved include:

100% read rate with no system issues.
21% reduction in out-of-stock merchandise.
Increased comparative sales for the tagged inventory categories.
Increased gross margin on tagged inventory classes.
Low cost per use of approximately 8 cents (intelliTRACKER tags are reusable over a five-year lifespan).
Significant return on investment (ROI).

"The clear and measurable gains we experienced with intelliTRACKER have exceeded our expectations," said Joe Soares, director, process engineering at Staples Business Depot. "The system was easy to install and has consistently delivered inventory visibility with 100% accuracy since we went live."

The intelliTRACKER system eliminates the need for Staples to conduct physical cycle counts on the RFID tagged inventory. In an audit, the intelliTRACKER system was more accurate than physical counts and shrinkage for the tagged inventory was eradicated. The system has balanced Staples' master inventory system and has provided a tool for locating merchandise, managing returns, feeding the replenishment system and preventing out-of-stock situations.

"Our intelliTRACKER system is now performing the tasks and delivering the sizeable benefits that everyone had hoped for when RFID technology first made its big splash in the retail market a few years ago," said John Frabasile, president and CEO of AbsoluteSKY Solutions.

Source: Fujitsu.