XX Summer School "Francesco Turco" - Industrial Systems Engineering

Deploying RFID in the fashion and apparel sector: an “in the

field” analysis to understand where the technology is going to

Elisa Esposito*, Giovanni Romagnoli*, Simone Sandri*,

Luca Villani*

*Department of Industrial Engineering, University of Parma, Parco Area delle Scienze 181/A, 43124 - Parma –
Italy (giovanni.romagnoli@unipr.it)

Abstract: The paper performs a review of the literature of RFID deployments in the fashion and apparel retail
sector: 95 papers from different sources were carefully analyzed and organized in a proper data base, and the
contents of these papers were used to build a data base of RFID projects in the mentioned sector. The information
stored in the data base were then organised in descriptive statistics that depict the situation of RFID projects: the
statistics describe the papers we used to build our data base and, more important, the overview of RFID projects
that we reviewed, such as the types of products where item-level tags are employed the most (apparel, footwear or
accessories), the partition of projects and stores per geographic area and per type of projects (feasibility studies, pilot
projects or full deployments). Also, the use cases of RFID pursued were reported, together with respective number
of deployments and percentage values, and the same was done with results achieved, categorized in 6 main different
clusters.

Eventually, a statistics was reported to try to link the RFID use case investigated by a project to its possibility to
evolve into a full deployment, and the results of this statistics could greatly help managers to choose the best use
cases of RFID to be pursued for achieving competitive advantage.

Keywords: fashion and apparel retailing; RFID deployment; use cases; in the field analysis.

management, from inventory management to brand

1. Introduction
The fashion and apparel retail sector can achieve
significant benefits throughout its entire supply chain
thanks to the deployment of Radio Frequency
IDentification (RFID) technique at item-level (Loebbecke,
Huyskens, & Gogan, 2008). Within this context, in fact,
RFID is a powerful tool to achieve efficient supply chain
management for two main reasons: (i) it automates
processes, and hence it increases their productivity; (ii) it
can lead to higher process accuracies and (iii) information
collected from the field can be made available throughout
the entire value chain in real time, therefore enabling new
paradigms and business models (Al-Kassab, Mahmoud,
Thiesse, & Fleisc, 2009).
From the first implementation of RFID technology for
item-level tagging, documented from 2006 and primarily
in distribution centres, their main aim was increasing
productivity and accuracy, streamlining logistics activities
and reducing errors and shrinkage. Since then, some
forerunners first, but then more and more companies of
the apparel, fashion and retail sector realized that higher
value could be generated by pushing item level tagging to
the store processes, and they started to test and deploy
RFID technology to pursue different use cases. Fashion
industry, in fact, can count the highest number of use
cases, from shop floor to customer relationship
management, from logistics to marketing and promotion
protection.
According to several authors (Bertolini, Bottani, Ferretti,
Rizzi, & Volpi, 2012; Bottani, Ferretti, Montanari, & Rizzi,
2009; Buckel & Thiesse, 2014; Moon & Ngai, 2008),
amongst the use cases that were most commonly pursued
in the past we can reckon (i) process accuracy, (ii) process
automation, (iii) stock visibility and replenishment from
the backroom, (iv) loss prevention and (v) POS
transactions.
Based on these premises, an extensive review of the
literature of almost one hundred RFID projects is
presented. Data extracted from the review have been
organized in a structured database, and finally used to
calculate statistics that offer a general picture about the
diffusion of this technology among the fashion industries
and the results obtained by pursuing different use cases.
2. Literature review and classification
Different sources were considered to perform a broad
review of RFID projects in fashion and apparel retailing:
although many firms completed several deployments of
RFID, in fact, only a small percentage of them published
their results in some dissemination channel, and rarely in
scientific literature. For this reason, we also considered
websites, blogs, workshops, conferences, non-academic
journals, and different sources of information.
By means of all the papers retrieved from these different
sources we built up a comprehensive picture of RFID

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deployments and benefits pursued (and sometimes

brought in by) RFID technology in the fashion and
apparel retail sector.
To be more precise, the following sources of information
were considered: (i) scientific papers, (ii) research reports
(also including conference presentations or proceedings),
(iii) websites and (iv) confidential information. Table 1
reports the total number and percentage of papers per
type of source, and Table 2 categorises the different types
of websites from which we reviewed a significant
percentage of papers (76%). The vast majority of papers
were retrieved from RFID 24-7 (http://www.rfid24-
7.com) and the RFID Journal
(http://www.rfidjournal.com). We also considered
Figure 1: Number of papers per year of publication
websites of different companies (technologies suppliers’,
fashion firms, etc.) and thematic sites and others (e.g. 3. Analysis of the projects of RFID implementation
fashion industry, new technologies applications at cetera).
Eventually, we classified papers according to their year of All the sources described in the previous paragraph were
publication, as it is reported in Figure 1: the number of reviewed and organized in a structured database of RFID
articles describing RFID implementation in fashion and projects: with the term “project” we mean a feasibility
apparel retail firms has been considerably increasing in the study, a pilot or full deployment of RFID technology,
last decade and, particularly, more than 85% of our carried out by a single organization within a limited
sources were published between 2009 and 2014. amount of time, in order to purse one or more use cases.
Table 1. Classification of papers per type of source. According to our definition, the same company can be
associated to different projects, and one or more RFID
Type of source N. of papers %
use cases can be concurrently pursued in every project.
Websites 72 76% Every project in our data base was treated as a record, and
for each record we specified several fields, such as general
Scientific papers 8 8% information, use cases pursued, project features and
Magazines 2 2% achieved results.
Research reports 4 4% In particular, the following different results were taken
into account:
Confidential information 9 10%
• Process time reduction: percentage of time
Total 95 100%
reduction achieved by employing RFID in one
or more processes, except inventory counts;
Table 2. Websites categories.
• Increased process accuracy: percentage of
Website categories N. of papers %
increase in processes accuracy, except for the
RFID Journal 22 31% increase in inventory accuracy;
RFID 24-7 29 40% • Increased turnover / sales: percentage of
increase in sales and/or turnover due to RFID;
Companies websites 9 12%
Thematic sites and others 12 17% • Inventory time reduction: percentage of time
reduction in performing inventory counts;
Total 72 100%
• Inventory accuracy: percentage of inventory
accuracy achieved by mean of RFID technology,
or percentage of increased inventory accuracy
over the baseline;
• Shrinkage reduction: percentage of
losses/thefts reduction.
Since several companies prefer not to publish precise
numerical data of their achieved results, we reported
numbers only when they were available in literature, using
a “yes flag” for noticing a qualitative description of the
benefits achieved.
Eventually, the PDB counts 77 different RFID projects
with an average number of filled-in fields per record of

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45,7% (min = 15,0% max = 70,0%). However, it is worth
noting that, since the use cases investigated by each
project are records of our data base, a value of filled in
fields of 100% is only possible when a project pursued all
18 the use cases illustrated in (Esposito, Romagnoli,
Sandri, & Villani, 2015). Since the maximum number of
use cases investigated by a single project equals 10, the
maximum value of filled in fields is 80%.
3.1 Descriptive statistics
We distinguished the different products in apparel,
footwear, accessories and some combinations of them:
this was done to see which categories experience the wider
use of item-level RFID tags. Table 3 shows that apparel is
the single most RFID-friendly category, while Accessories
is the least of them.
Table 3. Types of products where item level tags are
employed.
Product type # %
Apparel 33 42,9%
Apparel/ Footwear / Accessories 17 22,1%
in these projects, although the single country that
experiences the higher value of RFID projects are the
United States, as it can be seen in Table 5, followed by
Germany and Italy.
Also, Table 5 reports that the most RFID projects were
pilots, followed by feasibility studies and full deployments.
This caught our attention, because a possible explanation
of these numbers is that (i) only a few number of firms
reported their feasibility studies before implementing
RFID and (ii) the number of pilot projects reported is
more than double to the number of full deployments.
This could mean that either the feasibility studies were not
given so much academic importance, or that several
companies felt so sure to implement RFID they jumped
directly to piloting it. On the other one hand, the number
of pilots can outnumber the full deployments because of a
time lag (i.e. some of the today pilot’s will eventually
become full deployments) or because of unsatisfactory
results achieved by RFID pilots. Most probably, a
combination of these issues come to play in each case;
however, to better understand the results achieved by
RFID projects of our data base, we continued with some
other statistics as reported in the following paragraph.

Footwear 8 10,4% Table 4. Number of stores and projects per area.

Apparel / Accessories 8 10,4% Geographic area N. of stores N. of projects

Apparel / Footwear 5 6,5% North America 5.431 28
Accessories 3 3,9% South America 4 2
Unknown 2 2,6% Europe 5.708 36
Footwear/ Accessories 1 1,3% Middle East 98 2
Total 77 100,0% Far East 87 6

The geographic area where RFID projects took place is Unknown 81 3

reported in Table 4, and it shows that Europe counts the Total 11.409 77
biggest number of RFID projects and of stores involved
Table 5. Number of projects per type and country.
Country Feasibility studies Pilots Full deployments Unknown Total
USA 2 15 7 24
Germany 1 6 3 10
Italy 3 4 3 10
China 3 1 4
France 1 3 4
Netherlands 3 3
Mexico 3 3
England 2 1 3
Unknown 1 2 3
Canada 2 2
Brazil 1 1 2
Germany & Luxemburg 1 1
Turkey 1 1
Slovenia 1 1
UAE 1 1
Europe 1 1
Netherland & Germany 1 1
Belgium 1 1
Japan 1 1
Italy, Portugal 1 1
Total 6 47 21 3 77

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Table 6. Use cases of RFID pursued and respective number of deployments and percentage values.
Level 2 UCs N. of deployments % of projects % of total deployments
1.1-Locating items 7 9,1% 2,2%
1.2-Loss prevention 35 45,5% 10,9%
1.3-POS Transaction / Faster checkout 15 19,5% 4,7%
1.4-Stock visibility / Replenishment from the backroom 39 50,6% 12,1%
2.1-Social shopping 2 2,6% 0,6%
2.2-Store associate availability / Customer knowledge 11 14,3% 3,4%
3.1-Customer experience 19 24,7% 5,9%
3.2-Cross-selling / cross-promotions 14 18,2% 4,4%
3.3-Store associate empowerment 5 6,5% 1,6%
4.1-Process automation 50 64,9% 15,6%
4.2-Process accuracy 34 44,2% 10,6%
4.3-After sales / Returns 9 11,7% 2,8%
5.1-Out of Stock / Inventory accuracy 46 59,7% 14,3%
5.2-Omnichanneling 7 9,1% 2,2%
5.3-Supply chain visibility 17 22,1% 5,3%
6.1-Grey market 3 3,9% 0,9%
6.2-Counterfeiting 4 5,2% 1,2%
6.3-Traceability 4 5,2% 1,2%
Total 321 100,0%

Table 7. Results achieved and relative frequency, average and maximum values.
Results # % of the % of the Avg. increase / Max increase /
projects total decrease decrease
R5 - Inventory accuracy 30 39,0% 24,2% 98,6% 99,9%
R4 - Inventory time reduction 27 35,1% 21,8% 88,5% 98,0%
R3 - Increased turnover/sales 23 29,9% 18,5% 7,0% 21,0%
R6 - Shrinkage reduction 17 22,1% 13,7% 40,0% 55,0%
R1 - Process time reduction 17 22,1% 13,7% 70,4% 95,0%
R2 - Increased process accuracy 10 13,0% 8,1% 8,0% 9,0%
Total 124 100,0%

Finally, all use cases presented in (Esposito, Romagnoli,
Sandri, & Villani, 2015), together with the number of
deployments registered for each use case, the percentage
of projects that pursued each one of them and the
percentage of total deployments allotted to each use case
are reported in Table 6. The table shows that consistent
percentage of projects in our data base pursued 4.1-
Process automation (almost 65% of projects), 5.1-Out of
Stock / Inventory accuracy (roughly 60% of projects), 1.4-
Stock visibility / Replenishment from the backroom
(50,6%), 1.2-Loss prevention (45,5%) and 4.2-Process
accuracy (44,2%).
4. Results and discussion
The average results achieved are shown in Table 7. The
2nd column reports the number of projects where each
single result was documented: since more than one single
result can be achieved by every single RFID project, the
total of this column is higher than the total number of
projects. The 3rd and 4th column calculates the
percentage over the number of projects and over the total
number of results achieved, while last two columns show
average and maximum value achieved of percent
increase/decrease for each performance index (e.g. a good
result is achieved whenever, say, process accuracy is
increased and process time is decreased by x and y%,
respectively).
As we can see in Table 7, the mostly achieved benefit is
inventory accuracy (around 39%). Also for inventory time
reduction (35,1%) and increased turnover/ sales (29,9%)
big values have been recorded, while other performance
indexes appeared a bit less.
About the percentage of increase/decrease the scenario is:
on top of the classification we have inventory accuracy
and inventory time reduction where the maximum of
increase is almost 100% for the first one and 98% of
decrease for the second one, while average values are
around 99% and 88%.
The first two are followed by process time reduction with
a maximum value of 95% of decrease and an average of
70%. The results of other three performance indexes are
lower.
Important though it is, Table 7 allows to understand
which kind of results were more frequently found out, but
it cannot help specialists to understand which use cases
could be pursued to “ensure” the higher probability of

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achieving results and, therefore, rolling out full RFID • use cases that most probably evolved pilot
deployments. We believe this point is very important for projects into full deployments:
practitioners because it can help to choose which use
cases to pursue when planning new RFID o 1.2-Loss prevention;
implementations. o 1.3-POS Transaction / Faster checkout;
To do so, we operated in the following way: first of all, we o 1.4-Stock visibility / Replenishment
considered only pilot projects and full deployment, from the backroom;
scratching out feasibility studies or unknown projects.
Afterwards, we tried to link projects, therefore achieving o 2.2-Store associate availability /
(i) which companies performed only pilot projects and did Customer knowledge;
not follow up with full deployments pursuing similar use o 4.2-Process accuracy;
cases; (ii) which companies, on the other hand, performed
directly full deployments, without anticipating them with o 4.3-After sales / Returns;
pilot projects; finally, we listed (iii) which companies o 5.1-Out of Stock / Inventory accuracy;
performed first a pilot and then, pursuing similar use
cases, continued with full RFID deployments. o 5.3-Supply chain visibility;
Eventually, we linked these three categories to the results • use cases that most probably started directly
achieved, only considering which kind of results were from full RFID deployments:
attained from the qualitative point of view and not taking
o 5.2-Omnichanneling;
into account the numerical values of results.
o 6.1-Grey market;
Table 8 reports what we achieved. As the table shows, the
number of projects that only undertook pilot projects o 6.3-Traceability;
equals 35, while 11 projects went directly for full
deployments and 22 projects performed first a pilot and • use cases that most probably stopped to pilot
then a closely related full deployments. projects without evolving into full deployments:

Given these premises, 14,3 % of the pilot projects o 1.1-Locating items;

pursued use case 1.1, against not one single full o 2.1-Social shopping;
deployment of RFID that started directly pursuing use
case 1.1 (0%), and 4.5 % projects that developed a pilot o 3.1-Customer experience;
into a full deployment had pursued use case 1.1. From this o 3.2-Cross-selling / cross-promotions;
numbers we can presume that, probably, companies that
investigate in locating items (use case 1.1) are less likely to o 3.3-Store associate empowerment;
continue with their pilot projects. o 6.2-Counterfeiting;
Conversely, companies that investigate in loss prevention
• finally, one single use case experienced as many
(use case 1.2) are more likely to evolve pilot projects into
full deployments as pilot projects evolved into
full deployments (59,1%) or to start directly with full
full deployments, and that is:
deployments (45,5%) then not only limit themselves to
pilot projects (42,9%). o 4.1-Process automation, the most
widely encountered use case of RFID.
Following these logic, we parted the use cases in the
following categories:
Table 8. Categories of projects linked to use cases pursued.
Use%Cases
Type%of%project n.#projects 1.1 1.2 1.3 1.4 2.1 2.2 3.1 3.2 3.3
PILOT%PROJECT 35 14,3% 42,9% 17,1% 42,9% 5,7% 14,3% 34,3% 25,7% 11,4%
FULL%DEPLOYMENTS 11 0,0% 45,5% 18,2% 36,4% 0,0% 0,0% 27,3% 9,1% 0,0%
PILOT%+%FULL%DEPLOYMENT 22 4,5% 59,1% 31,8% 68,2% 0,0% 18,2% 18,2% 18,2% 4,5%
Type%of%project n.#projects 4.1 4.2 4.3 5.1 5.2 5.3 6.1 6.2 6.3
PILOT%PROJECT 35 57,1% 42,9% 5,7% 54,3% 5,7% 20,0% 2,9% 5,7% 5,7%
FULL%DEPLOYMENTS 11 72,7% 18,2% 9,1% 27,3% 18,2% 9,1% 9,1% 0,0% 9,1%
PILOT%+%FULL%DEPLOYMENT 22 72,7% 63,6% 18,2% 90,9% 13,6% 36,4% 0,0% 0,0% 0,0%

4. Acknowledgement Management Information Systems), funded by the EU

under the VII Framework Research Program.
5. References
This research was carried out under the Research Project
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14
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 XX Summer School "Francesco Turco" - Industrial Systems Engineering
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15
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