Cashmere Brand Owner Projects Reduced Lead Time and Increased Sales Using RFID Solution

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Laudis Systems announced the successful trial deployment of its RFID garment tracking and distribution management solutions for Sungod Enterprises Group Co Ltd, one of largest Chinese cashmere brand names. Laudis solution enable real-time tracking, locating and control of goods throughout the supply chain and the trial operation confirms rapid ROI and substantial benefits.

LAUDIS SYSTEMS LLC, a leading developer and provider of Radio-Frequency Identification (RFID) solutions for asset tracking and locating through supply chain, today announced the successful trial deployment of its RFID garment tracking and distribution management solutions for Sungod Enterprises Group Co Ltd. in Shenzhen, China.

Sungod, one of the largest cashmere brand names in China, has over 200 retail store customers throughout the country and major clients throughout the United States, Japan and Europe. The RFID solution implemented at Sungod allowed source tagging of apparel at the factory, improving visibility and real-time tracking as goods moved through the supply chain including the factory, distribution centers and retail stores.

“The benefit of RFID source tagging at the factory with Laudis software is quite compelling,” said Frank Ritota, Chief Executive Officer at Laudis Systems. Sungod trial proved how source tagging at the factory creates the DNA to reap rapid return-on-investment (ROI) and supply chain benefits with RFID. In fact, according to a recent study by independent industry research and analysis firm IDTechEx, item level tagging is happening faster than most realize. 200 million tags will be used in 2006 alone, mainly on applications for apparel, books and drugs.

The Laudis RFID solutions enable real-time tracking, locating and control of goods throughout the supply chain and close crucial gaps in the existing processes between manufacturers and the retailer’s shipping and coordination activities. Now, Sungod can ship or receive a box of apparel, scan it without opening the box and know – with 100% accuracy – what’s inside. Sungod no longer requires a labor-intensive manual process to verify the size and style mix as well as item quantities in each shipment. The company has projected an annual labor reduction at a minimum of 3,000 man-hours and increase in sales by at least 5%.

The benefits of RFID source tagging at the factory with Laudis solutions were substantial. It supported both manufacturers and distribution centers through:

  • More accurate shipping to retail outlets, with the ability to verify quantities quickly and easily
  • Enhanced real-time and automated inventory, including new pack-by-store services
  • Reduced lead-time and labor, through auto-shipping and receiving capabilities
  • Prevention of counterfeiting and illegal distribution of products

“A four-month retail study has proven that our investment in RFID can bring significant and rapid payback to both manufacturers and retailers,” concluded James Yang, President of Sungod Enterprise Group Co. Ltd. “The extensive range of both functional and business expertise at Laudis enabled us to clarify our thinking and set out a future strategy for source tagging with all of our product lines.”

About Laudis Systems

Laudis Systems LLC, a privately-held company headquartered in Edison, NJ, focuses on RFID solutions that enable customers to increase operational flexibility and efficiency, improve asset visibility and control, and provide real-time tracking/locating capabilities. For more information, please visit the company's website at http://www.laudissystems.com or join them at the AAFA Apparel & Footwear Summit from August 15-16, 2006 at the Fashion Institute of Technology in New York City.

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Frank Ritota
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