Background
Skechers China faces structural issues: high out-of-stock rates in stores coupled with substantial warehouse backlogs and a significant proportion of slow-moving inventory. Traditional manual inventory counts cannot support real-time sales monitoring. RFID technology is needed to optimize the "inbound-sales-inventory" entire chain and improve responsiveness.
Business Challenges
1. High SKU count for footwear (over 500 per store), coupled with granular sizing (6-8 sizes per style), leads to errors and omissions during manual inventory counts.
2. Under the demands of fast fashion, store replenishment needs have compressed from weekly to hourly, resulting in significant delays with traditional processes.
3. Slow identification of slow-moving styles (averaging over 30 days) results in high inventory turnover days.
Solution
High-Frequency Dynamic Inventory
Store staff conduct daily scans of key areas (e.g., premium display spots) using RFID handheld devices, obtaining real-time inventory data within 10 minutes with over 99.9% accuracy. The system automatically alerts for out-of-stock or excess SKUs.
Intelligent Replenishment Recommendations
By combining historical sales data and real-time sales velocity with RFID system data, display hotspot activity can be assessed to assist store managers in replenishment decisions. Managers can initiate transfer requests with a single click.
Rapid Identification of Slow-Moving Items
SKUs unsold for seven consecutive days are automatically flagged, triggering headquarters’ discount promotion or cross-store transfer strategies to accelerate inventory turnover.
Impact&Results
Out-of-Stock Rate Reduced in Stores
Attach Rate Improved
Inventory Turnover Days Significantly Shortened
Approaching Industry-Leading Levels
Obsolete Item Processing Cycle Shortened
Dormant Inventory Loss Reduced
25 Years of Industry Expertise · RFID Digital Solutions
Focused on the Fashion Industry,
Serving 100+ Fashion Apparel and Footwear Brands