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Innovative Chain Store Management with RFID Technology

Background
We know that retail stores are the most significant place to showcase and sell consumer products. Which is why the retail store is considered to be a more profitable business across the world and Russia is not apart, M video is the biggest electronics retail chain in Russia which started its first retail outlet in 1993 in Moscow. Today the company has more than 340 stores in 144 Russian’s cities that include 38 online stores as well. M video has nurtured and engaged its customers by offering a wide variety of products such as television, computers, camera, mobile phone, media entertainments, etc. However, customer retention is not easy if customers are not satisfied with the unavailability of a product or any delay in goods and services. And that is why M video implemented an intelligent inventory management solution to enhance the store management process and increase the operational efficiency of the company.

Challenges
1. With the wide range of products in stores, I was difficult for management to manual count the inventory on daily and result in low manpower efficiency.
2. It was difficult for a worker to identify the actual location of any particular product in the warehouse. A large number of inventories make it almost impossible to update the inventory on a real-time basis.
3. A significant amount of inventory of each item could not be ensured because real-time data was not available for management to take a decision on product level inventories.
4. End customer found it difficult to track its ordered item because the real-time update was not available for them which lead to low customer satisfaction.
5. Marketing strategies of any company is developed on the sales data analysis. Accurate data should be available at the right time for a better market strategy. In the case of manual process store sales and inventory related data cannot be presented at a time. M video was also dealing with the same issue.

Solution
After discussed with the solution team, M video decided to implement stock management solution with Chainway C72 UHF mobile computer. These mobile computers were integrated with store management software to read RFID tags assigned to each item in-store. The tags saved all the information about the product and it could be update and re-write with the help of C72 mobile computer.

Effects
1. The RFID solution enables the management to offer interactive and shopping guide solution for the customer. Now, staff can help the customer in purchase the decision.
2. Mobile computer is able to scan the bulk of products within seconds that help to reduce the working hours and speed up the stock maintenance process which usually took hours before implementing RFID solution.
3. Sales and marketing decision making are easy now with the availability of real-time data with top management.
4. RFID solution also improves the brand image and strengthen customer loyalty due to excellent services.
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