El Puerto de Liverpool S.A.B. de C.V., the leading retailer in Mexico with more than 78 stores and $3.1 billion USD in annual revenue, has implemented a comprehensive RFID solution for its suppliers that has delivered quantifiable improvements to its inventory management processes. The initiative, which affects more than 200 suppliers and uses 3 million RFID tags and inlays annually, is one of the largest in the country.

After testing RFID’s potential to optimize inventory management processes, Liverpool mandated carton-level RFID tagging for all of its suppliers in 2008. Liverpool decided to offer finished UHF RFID tags and inlays for sale, to provide suppliers with a single tagging solution, while improving its control of the large-scale track-and-trace program. Liverpool selected bulk volume RFID labels from Digilogics containing UPM Raflatac UHF ShortDipole RFID tags equipped with Impinj's Monza 3 tag chips because of both UPM Raflatac's and Digilogics' abilities to guarantee on-time deliveries of high quality, cost-efficient products that deliver exceptional performance.

“The UHF ShortDipole RFID tags and inlays provided by UPM Raflatac and converted by Digilogics are cost-efficient, high performance and extremely accurate,” said Oswaldo Romero Martinez, Liverpool RFID project leader. “The results we have achieved demonstrate RFID’s ability to improve volume-intensive operational processes, reducing costs due to inefficiency and errors.”

In the next phase of the project, Liverpool will require additional suppliers to tag goods at the item level; equip retail employees with RFID handheld devices to process inventory; and update POS terminals with RFID readers to streamline checkout processes. The company is also testing customer-facing solutions, such as RFID-powered fitting rooms, which enhance the shopping experience and help cross-sell and up-sell retail goods. Liverpool’s goal is to work closely with its suppliers to increase merchandise availability to near-perfect levels, increasing customer satisfaction and product sales.

“By standardizing tag use and implementing a comprehensive tagging program, Liverpool is maximizing its benefits from implementing RFID technology,” said Jan Svoboda, sales and marketing director, Americas, RFID, UPM Raflatac. “The results Liverpool has achieved demonstrate this supply chain technology’s ability to streamline a wide array of operational and customer-facing processes.”

“In today’s competitive retail environment, ensuring merchandise availability is critical to maximizing product sales and strengthening margins,” said Luca Pastorello, partner, Digilogics SA. de C.V.