A GS1 Norway Case Study
“Getting the stocktaking done in an hour, and receiving a full update on stocks in the stores every week, is a radical improvement on using 30 hours on manual stocktaking once a quarter. Stocktaking with RFID is also much more precise than manual stocktaking.” Hans Petter Hübert, Retail Director, Moods of Norway
The Norwegian apparel company Moods of Norway was established in 2003. Their concept is to market untraditional fashion wear in the segments street, casual, cocktail and sport under the slogan: “Happy Clothes for Happy People”. Today, Moods of Norway is the largest Norwegian brand in international fashion.
In 2008, Moods of Norway opened its first brand store in Akersgata, Oslo and today has 14 brand stores and three outlet stores in Norway as well as brand stores in Los Angeles and Strömstad. Their products are also sold through many multi brand stores all over the world.
Using RFID to improve product and information flows in the clothing sector
Moods of Norway recognised that there were great opportunities for improving and streamlining the company’s product and information flows, by using RFID tags on their clothing, especially in the following areas:
- Planning purchasing and transport from manufacturers/suppliers to the Moods of Norway main warehouse in Stryn
- Managing stock at the main warehouse
- Distribution between the warehouse and the retail stores
- Inventory control in Moods of Norway’s own brand stores
- Electronic Article Surveillance (EAS)
The RFID tag inventory and stock management pilot project
In 2013, Moods of Norway, in conjunction with GS1 Norway commenced an RFID pilot project to evaluate the benefits and gains of using RFID tagging for stock management, as this is where the greatest financial contribution could be made. Reducing out-of-stocks and excess stock levels in stores was the initial objective along with evaluating if the RFID tagged product out performed non-tagged product in terms of sales. Two pilot stores were chosen along with two product categories; men's suits and men's shirts.
RFID in Apparel Project Results
The pilot project achieved dramatically good results:
- Both pilot stores achieved very good sales growth in the two pilot categories. Sales were far above the sales of the same products in other Moods of Norway brand stores.
- The pilot stores improved their view and control of inventory. This led to more accurate replenishment of the RFID tagged garments from the main warehouse, with fewer out-of-stock situations resulting.
- An unanticipated additional benefit was that the two pilot stores also had marginally greater sales of products without RFID tags, compared with the other stores.
Next steps for RFID tag adoption
As a result of the successful pilot Moods of Norway decided to fully implement the RFID system in all its 14 brand stores in Norway. Rollout commenced in Autumn 2014 and by early Spring 2015 90% of Moods of Norway's product range was RFID tagged. Stock counting is done by staff using hand-held RFID readers.
Today Moods of Norway is moving beyond store level inventory management to use the RFID solution in the following areas:
- Management of stocks between the back-of-store and on the shop floor to enhance replenishment efficiency
- Use of store stocks for online sales
- Using fixed antennas in-store to record real-time stock levels. This also has the added benefit of enhancing customer service through visibility of actual product location on the shop floor and (with potential adoption in the changing rooms to demonstrate product popularity/consumer interest vs sales of the same product)
- Inventory management at the main warehouse (goods inwards and distribution)
- Security - Electronic Article Surveillance (EAS)
Moods of Norway RFID Inventory Management Project Case Study
To learn more about the details of the pilot project, the learnings, outcomes and next steps for implementation please download a copy of the full case study.
Moods of Norway RFID Case Study PDF