ROI Analysis Moves RFID from Compliance to Corporate Asset
Xterprise Incorporated, a leading solutions provider for the "RFID Enabled Supply Chain," announces the addition of skudynamiX™ to its suite of RFID solutions. skudynamiX™ allows suppliers in the retail value chain to accurately determine which products should be targeted to generate Return on Investment (ROI) from RFID implementation.
Dallas (PRWEB) August 17, 2005 -- Xterprise has positioned the new offering for product suppliers with current RFID infrastructure, and suppliers starting to develop RFID solutions. Both can reap the same ROI benefits by using skudynamiX™, which is empowered by using an application by TrueDemand. TrueDemand is the industry leader in RFID based value generating applications, and recently announced a technology partnership with Xterprise.
Through industry research, Xterprise determined that many suppliers shipping RFID tagged products did not consider ROI or business practices in their rollout plan. The research also shows only a small number of suppliers with current RFID infrastructure are reviewing and using their retailers RFID read data. Because of this limited insight, they are not able to use their retailers data to create value, delaying the opportunity to improve their supply chain.
"We understand the cost of RFID affects a supplier's ROI, so we have created skudynamiX™ to allow suppliers to fully utilize their RFID resources and financially improve their supply chain" said Tom Abraham, Director of Solutions at Xterprise. "For customers just starting to define their approach to RFID compliance, we can bring significant value by assisting the selection of products to tag and developing a strategy to get the best ROI from RFID. The combination of our execution and planning solutions will deliver a strategic advantage for suppliers in the retail value chain."
During the first step of ROI assessment, Xterprise combines use of the TrueDemand application "SKU Analyzer" and Xterprise's industry leading RFID implementation best practices to provide customers with a roadmap for ROI, focused on value capture. Candidate SKUs are selected and supply chain metrics are reviewed for each SKU to understand if further improvement opportunities are present.
The second step is implementation of TrueDemand applications that provide planning, forecasting and replenishment solutions to generate ROI. Xterprise uses it's TraX™ retail RFID read analytics application to prepare and present the RFID information to TrueDemands demand signaling applications and allow optimized orders and replenishments.
This complete ROI assessment allows a supplier to quantify financial results of changes to their RFID strategy not only for the first year of adoption but also future years. The ROI assessment supports SKU specific decisions such as which items to tag, based on seasonal demand and promotions performance; not just assessments related to the aggressiveness of adoption or RFID.
"Suppliers are starting to go public with information regarding the attractive ROIs they are generating by using the RFID data to better monitor and predict demand of product, some have publicly stated 25% returns," said Dean Frew, CEO of Xterprise, speaking of firms who have adopted these practices. "We are working with suppliers on maximizing the saleable value of their inventory."
The company began offering the skudynamiX™ solution to clients in July with pricing based on the number of SKUs to be evaluated and complexity of their merchandising strategy.
About Xterprise
Xterprise Incorporated develops RFID supply chain solutions and has been chosen by the many of the worlds most respected supply chains and fastest growing companies as an RFID solution provider. Xterprise blends best practices, supply chain processes, material handling, RFID system hardware and application software, enterprise systems integration, data analytics, demand signaling applications and remote solution support. This provides the industry benchmark for system ease of use and lowest cost per case solution in the markets they serve.
Xterprise works with other industry leaders in logistics, RFID, and supply chain management, including Alien Technology, Zebra Technology, Symbol, Apriso, Red Prairie, TrueDemand, DPI and others.
Xterprise is headquartered in Carrollton, TX. For more information, visit www.xterprise.com or call 972-690-9460, ext. 300.
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