Wam Denim: RFID supports an ambitious growth strategy
Wam Denim wanted to use RFID for inventory management to support an ambitious growth strategy. Now, the Dutch retail chain has streamlined its supply chain and gained real-time inventory insight.
Real-time inventory insight
Wam Denim is a Dutch retail chain specializing in Italian-inspired menswear with more than 40 stores in the Netherlands, Belgium and Germany. As part of their growth strategy, the retail chain had the ambition to streamline the supply chain with RFID. Unfortunately, none of the RFID systems they had tested so far were integrated into Business Central.
“We had tried a number of RFID systems but did not experience a real value of the solutions, as the data was too old and outdated. This was resolved after we implemented NP WMS. We can now rely on our inventory data, as all items are marked with RFID tags, and the location of the items is updated in the ERP system in real-time,” says Chief Executive Officer, Samim Nasrollah.
RFID success leaves open the possibility for expansion
“The RFID tags enable us to ship 20,000 items at a time without losing sight of what is in which boxes. We always have full control over inventory both at the main warehouse and each store. It gives us a unique insight into stock and performance when we know where each item is,” says Samim Nasrollah.
The increased efficiency brought about by RFID technology allows the retail chain to expand its business further. In line with their growth strategy, they are now planning to open more stores in Germany with the same inventory management setup as in the rest of the business.
RFID on the entire journey of the product
1. Production in Turkey
The clothing collections are produced in Turkey, where Wam Denim labels all the items with RFID tags. Before sending, an RFID tunnel verifies the contents of each box.
2. Distribution center in the Netherlands
When the boxes reach the distribution center, they are scanned with a hand-held RFID scanner before they are strategically placed in the main warehouse.
3. Wam Denim stores
In the stores, the staff can make frequent inventory counts with RFID readers, so that they have full insight into the stock directly from the POS.
Four clear advantages according to Wam Denim
Prevents inventory shrinkage
The chain office uses RFID tags for loss prevention to decrease inventory shrinkage. With precise insight into the movements of the items, employees at the chain office have knowledge of each individual item that leaves stores and warehouses. The RFID tag is automatically deactivated when the item is sold in the store. The chain office, therefore, has an overview of unsold items and how they may disappear.
Click & Collect
With insight into the movements and location of all items, Wam Denim can offer Click & Collect from their web store, where data is updated in real-time. In addition, they can utilize stores’ stock for web store orders. The web store shows the stock of each item in the various stores. Wam Denim’s customers, therefore, get a quick overview of where they can pick up specific items.
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Data-driven decisions
The chain office can follow the journey of the items via Business Central. Here they can follow where the items are in the supply chain and how well different collections sell. They have knowledge of store performance; how long items are in stock and what is trending. The data equips them to make qualified decisions.
Inventory count
Accurate stock data do not only come from RFID tags. It also comes from shop owners’ frequent inventory counts. With a hand-held RFID scanner, they easily and quickly update the stores’ stock numbers so they can be sure of what they have in stock. Via the POS, they can access the data and provide good customer service.
“Thanks to the RFID technology, we know where all our products are – even though we have well over 1,000,000 items. It gives us a unique insight into every nook and cranny of the business and has created the visibility and customer experience we were looking for.”
– Samim Nasrollah, Chief Executive Officer, Wam Denim.
