RFID Fashion Retail ROI Calculator
Learn how to assess your potential return on investment (ROI) from employing radio frequency identification to track apparel, footwear and accessories in stores. This interactive spreadsheet comes with supporting notes that explain the assumptions in the calculator.
Each participant in the RFID in Retail and Apparel event will receive a free copy of the ROI Calculator on CD.
The calculator enables retail firms to enter their average number of units on the sales floor, and in the back room, as well as the average unit cost, inventory turns and retail margins. They can also enter the number of hours that staff members spend receiving goods, conducting cycle counts and replenishing product inventory. The calculator will then estimate the reduction in labor costs, based on savings achieved in deployments and pilots by such companies as American Apparel and Dillard's in the United States, and Karstadt, Galeria Kaufhof, NP Collection and others in Europe.
The calculator allows a user to estimate the potential increase in sales, based on the improved inventory accuracy and on-shelf availability that can be achieved with radio frequency identification, and enables companies to estimate hardware, software and integration costs, based on their store layout and operations. It also provides a sample case for a fictional company, based on benchmarks from real-world deployments and businesses utilizing RFID, regarding the cost of adding employees to improve inventory accuracy.
"Retailers have been running pilots for several years to see if RFID can deliver benefits, and we now have a great deal of evidence that it can," says Mark Roberti, RFID Journal's founder and editor. "This calculator now gives them the ability to determine the likely benefit, based on their stores and business processes, and then run pilots to confirm those benefits can be achieved."