2005.09.28

Takashimaya adopts NTT COMWARE's IC Tag Inventory Management System

-- System will enable the real-time inventory management of 60,000 pairs of women�fs footwear at 3 large-scale department stores --

The IC Tag Inventory Management System developed by NTT Comware Corporation (Head office: Minato-ku, Tokyo; President: Yuhji Imai; below, NTT Comware) has been adopted by Takashimaya Co., Ltd. (Head office: Chuo-ku, Osaka city; President: Koji Suzuki; below, Takashimaya).
After lengthy study and debate on the effectiveness of an inventory management system which utilizes IC tag technology, Takashimaya determined that adoption of NTT Comware's IC Tag Inventory Management System, already in use within other department store chains, would result in improved customer service and sales, a determination which prompted the decision to implement the system into the women�fs footwear sections of the Tokyo, Shinjuku and Yokohama branches of the Takashima department store. The system has become operational as of today (September 28) at all three locations. This is the first time that a system which utilizes IC tags has been adopted at Takashimaya.

• A major issue that arises in the women's footwear sections of department stores is the lost sales opportunities which result from the waiting times customers are forced to endure during storeroom checks, and from delays in customer reception during busy periods. In addition, another issue which is becoming increasingly important in department stores which carry a wide selection of shoes but only a small quantity of each variety is optimum inventory management which ensures that the optimal quantity of product remains in stock.
  IC tag inventory management is effective in reducing lost sales opportunities and optimizing inventory management, a fact which was demonstrated in trials conducted during the previous fiscal year. By sharing inventory information among all stores, this system will enable Takashimaya to (1) improve customer service by allowing sales persons to search the inventories held by other branches of their company on PDAs when the product is not held in stock at their location, and to order and receive the product the following day, and to (2) optimize inventory management within specialized shops through comprehensive inventory management between stores.

• With NTT Comware's IC Tag Inventory Management System, department stores can conduct cargo inspection and inventory checks, and salespersons can conduct storeroom checks without leaving the customer. In addition, this system provides a function which allows customers to check the availability of the product themselves with specialized terminals installed in the store. Cargo inspection and inventory checks, the so-called "backyard" work, are conducted using an IC tag handy-terminal reader to read the IC tags attached to shoe boxes. Storeroom checks are conducted by reading the information coded onto the IC tag of the shoe the customer is interested in with a PDA, which allows the salesperson to remain with the customer.
  Storeroom check records can be viewed in real-time on a "backyard" PC, and because the information on products which have received large numbers of storeroom checks is saved, information related to the popularity and consumer-awareness of particular products which was unavailable until now can be applied towards merchandising (*1) activities.
  In addition, NTT Comware's IC Tag Inventory Management System provides cargo inspection and cargo information creation functions which create a supply chain flow-through system between the department stores and their suppliers.

• NTT Comware has been a participant in the Technology Board led by the Auto ID Center (presently, EPCglobal) since 2002, and as a result of its auto ID research and standardization activities, NTT Comware has developed RFID Middleware which is based on EPCglobal (*4) standards and is the most advanced technology of its kind within Japan. In trials conducted in 2003, the RFID Middleware achieved impressive results: a recognition rate of 99.9% and above in container logistics management trials conducted with the Dai Nippon Printing Company. Furthermore, during trials conducted in 2004, in addition to achieving the same effectiveness and impressive results, NTT Comware furthered its knowledge of the industrial applications of this technology, particularly in the logistics and retail sectors. NTT Comware is currently working towards the development of a complete system which will be able to hook-up with other systems and allow for the smooth control of large volumes of data while guaranteeing a high level of security.

• This occasion marks the launch of the official operation of NTT Comware�fs IC Tag Inventory Management System at three major branches of the Takashimaya department store chain. However, there remain a number of areas which require further work in order to promote the adoption of IC tag systems in the business-to-business (B2B) supply chain. These areas include (1) IC tag cost, (2) optimization of the IC tag shape in order to reduce installation work requirements, (3) implementation of new hardware such as the application of gate-type readers and smart-shelves (*3), (4) UHF band application, and (5) construction of information sharing networks which connect with EDI and CPFR (*4). NTT Comware is working together with user companies and hardware vendors to make progress in resolving the problems associated with these areas, and in doing so, is taking the initiative to develop a B2B supply chain IC tag system.
  

• *1 : Merchandising
  A marketing activity, merchandising refers to the business activity of providing to market products which satisfy consumer demands in optimal quantities and at optimal prices. A commercialization plan.
• *2 : EPCglobal
  The EPC promotional group. Formerly the Auto ID Center. A non-profit organization established in October 2003 by the International EAN Council, the international barcode organization, and the Uniform Code Council (UCC), the U.S. distribution codes organization.
• *3 : SmartShelf
  Refers to a display shelf equipped with RFID readers. Enables real-time product management through the reading of wireless IC tags attached to each product.
• *4 : CPFR (Collaborative Planning Forecasting and Replenishment)
  Refers to the practice whereby businesses along the supply chain from maker to retailer share information through the internet to collaboratively develop production plans and consumption forecasts which are then used to plan product replenishment.