Technology provider Checkpoint Systems shares a case study on Lowes' implementation of the provider's RFID solution in this advertorial.
Imagine being able to count 20,000 items in 4-6 minutes just by waving a “Magic Wand”.
Imagine telling your business that you’ve gained a sales uplift just because your stock is accurate and you have product on the floor for customers to buy.
Lowes Australia, a longstanding family-owned retailer with over 200 stores nationwide, has embarked on a significant technological transformation by integrating Radio Frequency Identification (RFID) technology into its operations. This initiative which commenced in 2024, aims to enhance inventory accuracy, streamline supply chain processes, and improve the overall customer experience.
Strategic Objectives
The primary goal of Lowes RFID implementation is to achieve greater accuracy in stock and replenishment data. By doing so, the company anticipated a higher frequency of item orders from suppliers, enhanced customer experiences within stores, increased sales, and improved inventory control. This move aligns with global retail trends where RFID technology is leveraged to provide real-time visibility into inventory levels, reduce stockouts, and optimize supply chain efficiency.
Technical Specifications and Compliance
Lowes mandates that all participating national, proprietary, supplier, and private brands adhere to specific RFID standards. Suppliers are required to use Gen 2 UHF RFID tags operating within the 902-928 MHz frequency range. These tags must comply with the GS1 EPC Gen2v2 (ISO/IEC 18000-63) standard and utilize the SGTIN-96 encoding schema. This standardized approach ensures that RFID labels can be read universally, facilitating seamless product reception and quicker shelf placement.
To support this initiative, Lowes partnered with Checkpoint Systems, appointing them as their RFID provider. Checkpoint will assist with label supply, encoding, and printing through their proprietary CheckNet platform. Additionally, user guides and training will be provided across all geographies where Lowes and its vendors have production facilities, ensuring a smooth transition to RFID compliance.
Implementation Timeline and Supplier Engagement
The RFID initiative began in 2024 and Lowes has proactively communicated this timeline to its suppliers, providing essential information to assist in preparation. Vendors are expected to include adhesive RFID labels on their items, with guidelines available to ensure proper implementation. This collaborative approach emphasises the importance of supplier engagement in achieving the desired outcomes of the RFID program.
Anticipated Benefits
The integration of RFID technology is expected to yield several benefits for Lowes Australia:
- Enhanced Inventory Accuracy: Real-time tracking of products will minimize discrepancies between recorded and actual stock levels.
- Improved Supply Chain Visibility: RFID will enable end-to-end tracking of products, allowing for better demand forecasting and inventory management.
- Operational Efficiency: Automated inventory counts and streamlined stock replenishment processes will reduce manual labour and associated errors.
- Customer Satisfaction: Ensuring product availability and accurate stock information will enhance the shopping experience, both in-store and online.
Future Outlook
Lowes’ adoption of RFID technology signifies a commitment to innovation and operational excellence. By embracing RFID, the company positions itself to meet evolving consumer expectations and stay competitive in the dynamic retail landscape. As the implementation progresses, Lowes will likely explore additional applications of RFID, such as integrating with customer-facing technologies and leveraging data analytics for strategic decision-making.
Lowes RFID journey reflects a strategic move towards modernising its operations, fostering stronger supplier partnerships, and delivering superior value to its customers.
Hear the full story from Lowes Chief Information Officer Sarann Ryan here.