Join Mike Graen as he continues his conversation with Justin Patton and Matt Russell from the Auburn University RFID Lab for an update on the state of RFID in the retail industry including:
↩️ How to know what's coming in and out.
🚪 Opportunities for solution providers.
🔮 The future of RFID in retail.
Greetings as Mike Graen on behalf of the
Matthew Russell:Walton supply chain center, we want to thank you for joining
Matthew Russell:our podcast today. Today, it's all about on shelf availability
Matthew Russell:and the role of RFID. at retail. I'm joined by Justin Patton's,
Matthew Russell:who is the Executive Director of the Auburn RFID lab. And Matthew
Matthew Russell:Russell, who is the director of the RFID lab as it relates to
Matthew Russell:retail. Let's get started. Matthew, I want to take this
Matthew Russell:back to you a little bit. So I think there's a lot of people on
Matthew Russell:the line who have heard of Auburn before. And they are
Matthew Russell:interested. Okay, what does Auburn do? Exactly? And I get
Matthew Russell:questions all the time. What is art? What is Alec? What is it?
Matthew Russell:What is a psychopath? Cow? What exactly is a scout app that they
Matthew Russell:just don't know. So you sent me a couple of slides maybe? And
Matthew Russell:again, I don't want this to be an Auburn commercial or
Matthew Russell:presentation. But I think it's really helpful to let the
Matthew Russell:audience know what exactly are the services in the retail
Matthew Russell:sector that that the folks at Auburn do? So Matt, if you
Matthew Russell:wouldn't mind putting up that deck from for him again, real
Matthew Russell:quick? And if he's walk us through Matthew, what some of
Matthew Russell:the things that that Auburn does for the retail industry?
Matthew Russell:Yeah, sure. And Justin, feel free to jump in here at any
Matthew Russell:point, to say anything. But yeah, I think sometimes people
Matthew Russell:might think, you know, all we do is the architecting, or maybe
Matthew Russell:the supplier certification for some of the retailers out there.
Matthew Russell:But there's a lot of different things. And like Justin said,
Matthew Russell:the end of the day, you know, our number one product is
Matthew Russell:students. And so there's a lot of different things, we focus on
Matthew Russell:big broad buckets, I think would be education, research, and then
Matthew Russell:also implementation support, supporting retailers, and brands
Matthew Russell:along their journeys. Here, the list that's on the screen is
Matthew Russell:just a few of the different things that that we can can sort
Matthew Russell:of categorize our group into lab tours, feasibility testing, our
Matthew Russell:expects, and so on. I don't want to go down the list there, but
Matthew Russell:maybe jump onto the next slide. And then take a look at some of
Matthew Russell:these. So one of the bigger things that we do is is called
Matthew Russell:the art program. And what that is, is tag certification. So So
Matthew Russell:RFID inlay certification, making sure that they meet what we call
Matthew Russell:a spec requirements. So given a certain scenario that that tag
Matthew Russell:will perform to the expected performance threshold. And so
Matthew Russell:for example, if if we have a retail store, and we have
Matthew Russell:apparel, and we've designated Hey, for all of our T shirts, we
Matthew Russell:want them to have an RFID tag that meets a certain read
Matthew Russell:requirement, then we'll test the RFID, tags, the inlays, and make
Matthew Russell:sure that they meet that standard. And then we'll group
Matthew Russell:them into what we call specs. And we use those specs to assign
Matthew Russell:to different products for a given scenario. So here's an
Matthew Russell:example on the screen, that's its spec, and there'll be a list
Matthew Russell:of tags. And then if your retailer has a playbook that
Matthew Russell:says, hey, for all of these products, you have to use spec
Matthew Russell:and then you can go choose from that list. And then you have
Matthew Russell:competence that that tag, or that inlay will lead to that,
Matthew Russell:that rate. So that's a lot of what we do here at the lab, you
Matthew Russell:can see that photo there is what we call the chamber. So that's
Matthew Russell:where we benchmark and test the tags for different read
Matthew Russell:environments. And we can really standardize that all the foam
Matthew Russell:prevents any outside interference and creates a clean
Matthew Russell:test environment there. Go to the next slide. So another big
Matthew Russell:part of what we do is called the Alec program. And that really
Matthew Russell:grew out of a need for retailers to establish competence that
Matthew Russell:when their suppliers are tagging that they're doing it the right
Matthew Russell:way. So all that is is just a sample or a validation program
Matthew Russell:where a supplier would send in samples. And then we test it to
Matthew Russell:make sure it meets a retailer's requirement. So it's encoded
Matthew Russell:correctly, they're using the right tag, it's the right spec,
Matthew Russell:it's in the right location, and then the sizing and all of that.
Matthew Russell:So we do that for a lot of suppliers, and most major
Matthew Russell:retailers that are using RFID go through that program. And it
Matthew Russell:really helps build competence in all the programs that are out
Matthew Russell:there. Because if a retailer is not confident that their
Matthew Russell:suppliers are tagging correctly, then we can't trust the data.
Matthew Russell:Then at the end of the day, it's not going to work.
Justin Patton:We do see some for new brands, like a lot of
Justin Patton:times brands will look at this and say what do I do this is it.
Justin Patton:It's really more of a help them out to make sure that they don't
Justin Patton:make a mistake because what you don't want to do the worst case
Justin Patton:is you go out there and you put RFID tags on 5 million units and
Justin Patton:you ship them and they're wrong okay because that's fixing that
Justin Patton:is not just changing wording on a website, like you have to pull
Justin Patton:units out of the supply chain, and it may be a four or five or
Justin Patton:six months supply chain to pull that stuff back out through
Justin Patton:there. So what we wanted to do is give people a chance to check
Justin Patton:on the front end, and most people are pretty good at it, we
Justin Patton:find that if it's a brand new category, it's people that are
Justin Patton:brand new to RFID. You know, less than 10% of them will make
Justin Patton:you know errors the first time around, but 10% is too high. If
Justin Patton:we're trying to get you know, good inventory accuracy, we
Justin Patton:would rather find out quickly and easily in the less painful
Justin Patton:way before people make a very expensive belly flop.
Mike Graen:Possibly next slide,
Matthew Russell:Matthew, just just real quick on that one.
Matthew Russell:This is this is looks like a little bit of an edge case here.
Matthew Russell:But Dan from Fujifilm said, you want to set a high quality image
Matthew Russell:and video of the product. And I think they took it literally and
Matthew Russell:they sent you a 50 megabyte file, and it crashed everything.
Matthew Russell:So FYI, you might want to think about this is an edge case we'd
Matthew Russell:have to work with here. But that was a comment that Dan made. I
Matthew Russell:want to make sure we got on your radar.
Matthew Russell:Got it? Yeah, Dan, you can reach out to the Alec email or the
Matthew Russell:contact form. And they'll help you out with that. Yep. Awesome.
Matthew Russell:And we also have office hours now to Matthew, don't forget
Matthew Russell:about that. Yeah, we do. So there's any suppliers on the
Matthew Russell:call, or anyone that's interested in the Alex side of
Matthew Russell:things. We do have office hours q&a, I think the link can be
Matthew Russell:found in your retailers playbook. If they're using Alec
Matthew Russell:program,
Matthew Russell:like the office hours of professors, I'll be there from
Matthew Russell:115 to 119. You may ask me anything you want. Is that one
Matthew Russell:of those
Justin Patton:exactly what it is. The volume is real high,
Justin Patton:like we're not. There's a few 1000 things that come through
Justin Patton:there a week. And, you know, there's a lot of questions, and
Justin Patton:we try to answer everybody's questions as best we could. But
Justin Patton:uh, it we found out that the volume was high. And some of
Justin Patton:these are a little complex. And we were trying to find a way to
Justin Patton:communicate more directly with people rather than just
Justin Patton:answering emails back and forth. So that's where we set up the
Justin Patton:office hours.
Matthew Russell:It's awesome. Yeah, I think that's that's been
Matthew Russell:a huge help. It's easier than going back and forth on that. On
Matthew Russell:email. Yep. Awesome. Another thing that we do is the old and
Matthew Russell:lab testing, and then also data collection. So helping,
Matthew Russell:primarily doing research on on, you know, looking forward,
Matthew Russell:different tags that could be coming out that are on the
Matthew Russell:horizon, different read environments, doing testing
Matthew Russell:there. And then also helping support different projects with
Matthew Russell:with field work. So going out and collecting data, and then
Matthew Russell:doing some analysis on that data as well. So these are actually
Matthew Russell:some photos of the lab. Now we have a mock retail environment
Matthew Russell:in there that we will use for a lot of different testing.
Matthew Russell:Yeah, let me interrupt you there. Because you guys provide
Matthew Russell:a service, I don't think you want to scale everywhere.
Matthew Russell:Because I think it'd be really hard to do, but we're certainly
Matthew Russell:going to take advantage at it and a study we're going to talk
Matthew Russell:about here in a second, which is literally going into a retailer
Matthew Russell:and doing a cycle count and picking up every garment and
Matthew Russell:saying Does it have a tag? Is it encoded correctly? Is it the
Matthew Russell:right tag is being? You know, is it everything that it should be?
Matthew Russell:And then being able to report back to the retailer, hey, for
Matthew Russell:these categories, here was your actual correctly tagged
Matthew Russell:information? And, frankly, from a compliance standpoint, here
Matthew Russell:were your biggest issues from a supplier standpoint of what we
Matthew Russell:didn't see get tagged. So is that something that you guys
Matthew Russell:currently make available? Or it's just because it's so
Matthew Russell:limited, because you've got so few resources can do this?
Matthew Russell:Yeah, that's something that we make available as part of
Matthew Russell:projects that we take on. And it's important, right? Because
Matthew Russell:if I, if my inventory says I have 10 items, I go out there
Matthew Russell:and scan the store with RFID. And I read five items, I need to
Matthew Russell:be sure that those missing five are actually not in a store. And
Matthew Russell:the only way to really know that for sure is to go out and count
Matthew Russell:what's in there. And you know, maybe it doesn't have an RFID
Matthew Russell:tags, there could be a few different reasons why they're
Matthew Russell:not showing up, or they're actually not in that store. And
Matthew Russell:so going in we call that doing an audit. It's a huge part of
Matthew Russell:what we do to help gather data and drive competence and
Matthew Russell:programs that are being rolled out. Excellent. Yep. For the
Matthew Russell:next slide. Another another thing that we spent a lot of
Matthew Russell:time on is lab demos. And then also kind of hand in hand test
Matthew Russell:space there. But we really do want to show people what RFID is
Matthew Russell:how it works, then what are some of the different use cases that
Matthew Russell:it can be used for. So we have a lot of different groups that
Matthew Russell:come to the lab and offer tours as an educational thing, where
Matthew Russell:they can learn about RFID active tags and pet Asset Tags, and
Matthew Russell:then really have a conversation to see how it might work for
Matthew Russell:them. So anyone on the call, you know, if you are interested in
Matthew Russell:coming to the lab and want to see it in person, we offer
Matthew Russell:tours. And we do those all the time. So feel free to reach out
Matthew Russell:to us. All right, excellent. I think this is the last one here.
Matthew Russell:But a huge part of, of what we do, too, is data analysis. And
Matthew Russell:we have a whole team of students that work on that, both to
Matthew Russell:support existing projects. And then also from the research side
Matthew Russell:of what does the future of supply chain, data transfer and
Matthew Russell:data capture look like? Especially with RFID. And these
Matthew Russell:are some examples of projects and, and things that the team
Matthew Russell:has worked on the the one on the left there that looks a little
Matthew Russell:bit like a Petri dish or something, we call that the
Matthew Russell:bubble of is. But that's really a way to visualize inventory in
Matthew Russell:a store in the truest way that we can, because we say, you
Matthew Russell:know, fine, 50% accurate. That may not be intuitive, as far as
Matthew Russell:what that means. I think there's a few different ways that we can
Matthew Russell:define inventory accuracy. And so we wanted to create a way to
Matthew Russell:look at each SKU look at the magnitude of that SKU, and then
Matthew Russell:I also look at whether it's accurate or not from an
Matthew Russell:inventory perspective. So that's something that the team is
Matthew Russell:currently working on, in developing. And then also there
Matthew Russell:on the right, just some charts, looking at RFID that's coming in
Matthew Russell:and sources of shrink. And you know, we do all sorts of stuff
Matthew Russell:and really explore a lot of different aspects of the
Matthew Russell:inventory accuracy. Justin, anything to to add?
Justin Patton:No, you know, Mike, you really helped us out
Justin Patton:on that sources of shrink stuff from the beginning. And that's a
Justin Patton:key one, making sure that we can know what's coming in what's
Justin Patton:going on. It's very quick, interesting example, one of the
Justin Patton:things we saw in a retailer was like packages of T shirts, we're
Justin Patton:looking at like four packs of white t shirts. And we were
Justin Patton:looking at the outbound on those were comparing POS to RFID. And
Justin Patton:what left the store and after two months, it was almost the
Justin Patton:exact correlation, it was maybe a 1% variance. So what that
Justin Patton:tells us is people are not stealing a lot of these, you
Justin Patton:know, four packs of white t shirts. It's not a high target
Justin Patton:item. But when we looked at the inbound, oh, man, it was a mess
Justin Patton:because the assortment was off. I mean, everything was weird.
Justin Patton:stuff was getting booked in it wasn't coming in. So you say
Justin Patton:well, how do we get back down to a low inventory accuracy? Well,
Justin Patton:we can say how it's not because people are stealing all of them
Justin Patton:off the shelf. It's because we're messing up the assortment
Justin Patton:on the inbound when we replenish. But then if you look
Justin Patton:at something like TVs, so the inbound assortments great
Justin Patton:because you don't miss order myths receive large volumes of
Justin Patton:television sets. But the exit don't look so good, because
Justin Patton:that's a high target theft item. That's something that people
Justin Patton:walk out of the store with, you know, all the time,
Justin Patton:unfortunately. So what you see is different items in the store
Justin Patton:have very different behavior, because of the different ways
Justin Patton:people use them and purchase those. But they all combined
Justin Patton:together to lower inventory accuracy. So we're trying to
Justin Patton:understand not just how we fix, you know, the current inventory
Justin Patton:inaccuracy issues. But how do we fix the sources of the problem?
Justin Patton:We're not just putting a bandaid on there. We want to go to the
Justin Patton:source and understand why the inventory accuracy is getting
Justin Patton:wrong in the first place. Because that's the ultimate goal
Justin Patton:of all this. Yeah,
Matthew Russell:yep. 100%. I've heard it said, well, RFID, all
Matthew Russell:I'm doing is fixing the things that I lost on a weekly basis or
Matthew Russell:whatever it's like, yeah, you are, but you're correcting and
Matthew Russell:reflecting what you really have. So you can potentially sell more
Matthew Russell:product, because that's the bottom line. And just to build
Matthew Russell:off that I got a couple of really, I think really good
Matthew Russell:questions that I want to ask you guys. One is on the use case.
Matthew Russell:Back to you, Justin really? So I have Bridgette asking the
Matthew Russell:question. And you'll laugh at this one. We RFID tag all of our
Matthew Russell:products for Walmart and we ship them complete. They claim a lot
Matthew Russell:of shortages, the item is tagged but not of the carton, obviously
Matthew Russell:was a lot of work with Chip, maybe you spend just a couple of
Matthew Russell:minutes on what Chip is in the idea of sharing that data across
Matthew Russell:the supply chain with your suppliers and what the
Matthew Russell:opportunities are for both claims as well as product
Matthew Russell:authentication
Justin Patton:claims is a big deal. Nobody likes claims. And I
Justin Patton:don't know the question was Walmart, but I'm gonna broaden
Justin Patton:it just a little bit because I don't want to speak to just
Justin Patton:Walmart in general, but uh, there's a lot of retailers that
Justin Patton:are using RFID in the store. You know, some people may not like
Justin Patton:this. So when I say it, but follow me we want to say this.
Justin Patton:When we ship stuff, there's supply chain. ASN 's are
Justin Patton:aspirational. What that means is that we think that that was what
Justin Patton:went out in that shipment. And we may even have barcode some
Justin Patton:stuff on the dock before it went out through there. But for the
Justin Patton:most part, most people and I'm talking about suppliers, even
Justin Patton:the retailers themselves, when we make as ends in the supply
Justin Patton:chain that's based on what the order was generated and what we
Justin Patton:Think was supposed to go out through there, the big change we
Justin Patton:moved to RFID world is because every single unit has its own
Justin Patton:unique serial number, we cannot generate any type of movement
Justin Patton:event or shipment event unless we physically scan that item. So
Justin Patton:what that means is we have to have a confirmed scan on receipt
Justin Patton:of that item for there to even be a transition supply chain.
Justin Patton:And that's very powerful. Because what that means is if
Justin Patton:you make any, you know, item movement transition or data
Justin Patton:transition into a confirmed transition, that's you, there's
Justin Patton:not much room for error there. Like if something disappears
Justin Patton:between this doctor one of the next one, well, you know where
Justin Patton:it went, so we know where to go look for it. The problem there,
Justin Patton:though, is Mike is that is an exponentially greater amount of
Justin Patton:data. And the responsibility for data handling there is much,
Justin Patton:much higher. So it's non trivial. I mean, we can put RFID
Justin Patton:tags on and scan them on the store shelf, and then update on
Justin Patton:hand quantities all day long. There's no problem. But being
Justin Patton:able to compare what's happening point to point and trace that
Justin Patton:all the way through is quite challenging. And I think that,
Justin Patton:you know, that's what the chip project was that you mentioned,
Justin Patton:is how we put systems in place to where we can trust and
Justin Patton:transfer that data from partner to partner in the full supply
Justin Patton:chain. And we're not quite there yet honestly, the biggest part
Justin Patton:of the problem with RFID is not the physics issues. And we said
Justin Patton:this earlier in the conversation, this is all an
Justin Patton:accounting problem, right? So this is all about how do we move
Justin Patton:from quantity level SKU level accounting, into serialized unit
Justin Patton:level accounting for full supply chain traceability. And that's
Justin Patton:probably one of the biggest IT changes that we've had in retail
Justin Patton:supply chain, since people started using computer databases
Justin Patton:in the 80s. That's gonna take a long time to do it's gonna be
Justin Patton:huge. So that's where we're heading.
Matthew Russell:Yeah, Bridget, I'm not sure if you understand
Matthew Russell:the technology he just mentioned. But today, we have an
Matthew Russell:item, I got this item right here, it has a UPC in the store
Matthew Russell:says I have a quantity of five. In the future. This has a UPC of
Matthew Russell:whatever. And I've got a serial number 12345. So each one almost
Matthew Russell:like the VIN number of your car, you have a unique serial number
Matthew Russell:for every selling unit. The fact that feature potential is when
Matthew Russell:you put your items in a box headed to Walmart or any other
Matthew Russell:retailer, you know the exact serial number of every one that
Matthew Russell:you put it in a box. When they receive it, they receive it and
Matthew Russell:they read those tags, if they got them all your good. And if
Matthew Russell:you didn't get them all ago, when they left our shipment
Matthew Russell:facility. They were all there. So you need check with your
Matthew Russell:shipper because we have we have actual proof that it was there.
Matthew Russell:That's the whole opportunity for claims elimination. Right.
Matthew Russell:Completely different question. But I think it's an important JW
Matthew Russell:from barcoding is asking, Are there opportunities for solution
Matthew Russell:providers to partner with Auburn when working with customers who
Matthew Russell:are risk responsing for supplier compliance, they're looking for
Matthew Russell:ways to strengthen industry alignment and increase adoption
Matthew Russell:and successful and potential for organizations that want to take
Matthew Russell:on RFID off of their internal organizations that you as you
Matthew Russell:guys already do, that you're already working on behalf but
Matthew Russell:for the most part of the retailers? Is there anything
Matthew Russell:else that could be done as a any help that solution providers can
Matthew Russell:provide?
Justin Patton:So yes, we do some of that we do partner with
Justin Patton:solution providers on a few different projects. Typically,
Justin Patton:we do them on a per project basis or directly with the
Justin Patton:suppliers themselves. And mainly that's a volume issue. There's
Justin Patton:just so many. I mean, there's you talked about a pyramid
Justin Patton:earlier, when you talk about RFID tags, you know, there's a
Justin Patton:few companies that make chips, there's quite a few more that
Justin Patton:make inlays. But when you get down to the label level, it's a
Justin Patton:vast sea of suppliers out there. And it's very hard to figure out
Justin Patton:who all the solution providers are and who their partner bases
Justin Patton:are and who they're working with on the retail side. So our goal
Justin Patton:is a lab. And this is what a strategy that we chose long ago
Justin Patton:Dr. Hargrave chose us before us, because we focus on the end
Justin Patton:users. So we spend all of our time that we can making sure
Justin Patton:that the retailers and the retail brands have the tools
Justin Patton:that they need to grow and drive adoption. We partner with
Justin Patton:solution providers as much as possible to get there. But our
Justin Patton:focus has not been as much on developing tools or developing
Justin Patton:market. We don't do a lot of going out there and do a market
Justin Patton:analysis for solution providers or VC funds and things like
Justin Patton:that. We're focusing more on the end users themselves. So as much
Justin Patton:as we have partnership on projects with them on that.
Justin Patton:Absolutely. But it's not a standalone project path normally
Justin Patton:for us.
Mike Graen:Gotcha. Gotcha.
Matthew Russell:Now when it comes to partnering solution
Matthew Russell:providers with the actual Auburn labs, specifically, potentially
Matthew Russell:providing solutions for your lab that that you do I mean, you
Matthew Russell:believe you have sponsorship opportunities for solution
Matthew Russell:providers if they want to be become part of the Auburn lab,
Justin Patton:right? We do we have an advisory board for the
Justin Patton:lab that we've had for since the beginning. Mike, you've been on
Justin Patton:that thing for however long, long time. So for years, it's
Justin Patton:one of the Advisory Board has been a, it's changed a lot, you
Justin Patton:know, the advisory board is truly an advisory board. So it's
Justin Patton:a group of companies that get together. And typically, they're
Justin Patton:folks that are interested in industry development as a whole.
Justin Patton:There's a lot of competitors on there. But um, we do have
Justin Patton:opportunities for folks that partner on that advisory board
Justin Patton:for, especially for research projects and stuff. One of the
Justin Patton:biggest changes we've seen, and I think everybody has, since
Justin Patton:COVID, is it used to be we would come together like four times a
Justin Patton:year, and you'd have a big group room full of people. And it's
Justin Patton:almost like a little mini conference. Now, it's a lot more
Justin Patton:challenging to facilitate collaboration and conversation,
Justin Patton:I think sometimes, because zoom meetings and stuff are awesome.
Justin Patton:But you know, you don't get the side context, I think a lot of
Justin Patton:times that you would from, there's things, especially the
Justin Patton:end users cannot say that I hear this all the time, like, I'll be
Justin Patton:happy to say this in a room full of people. But I will never say
Justin Patton:salon, because I don't know who's recording. So it's really
Justin Patton:kind of limited some of the sharing that we've seen as an
Justin Patton:industry. And I don't mean this in a bad way. I'm just saying
Justin Patton:that the board is changing. So there's definitely opportunities
Justin Patton:for that advisory board model. But we're always looking for
Justin Patton:folks who are interested in long term growth and overall market
Justin Patton:development. Awesome, perfect.
Matthew Russell:And I don't know put you on the spot a
Matthew Russell:little bit. The the next opportunity to actually meet I
Matthew Russell:believe is going to be September 14, that Cape Canaveral is going
Matthew Russell:to be both aviation aerospace and retail, that maybe maybe a
Matthew Russell:shameless plug for that if anybody's interested in
Matthew Russell:potentially attending that.
Justin Patton:Yeah, thanks, Micah, aero ID summit, I think
Justin Patton:there's some spots left. So that's in the Kennedy Space
Justin Patton:Center. We're doing some work with NASA, the director of deep
Justin Patton:space Logistics is going to come speak, we got speakers from
Justin Patton:McDonald's and Walmart. We've got folks from Boeing, we got
Justin Patton:folks from Delta, I mean, so a whole crew. So a lot of the
Justin Patton:problems that aviation and space are having translate immediately
Justin Patton:into opportunities for retail as a public university. All this
Justin Patton:money that me and you and everybody else are investing his
Justin Patton:taxpayers in an acid is great, but like if they're gonna put
Justin Patton:RFID on a space station, which they have, the idea is to
Justin Patton:transfer that technology down here and to use for warehouses
Justin Patton:and stores. So there's a little bit of a conversation about what
Justin Patton:they want, but then there's a lot of conversation but what's
Justin Patton:gonna happen on the retail side, so if you're interested, come on
Justin Patton:Arrow ID summit.com is the website you can register. It's
Justin Patton:free to come. And I love to see you all down there if you'd like
Justin Patton:to show up.
Mike Graen:Awesome, perfect.
Matthew Russell:I'm getting several questions on here that
Matthew Russell:look like more like asset protection, return fraud, etc.
Matthew Russell:Since a lot of questions, we don't have time to cover all
Matthew Russell:these. I'm afraid I'm loving. They're asking the questions.
Matthew Russell:I'll do a shameless plug. The next conversation is on retail
Matthew Russell:that Matt Pfeiffer and I are going to be doing is September
Matthew Russell:the sixth, I can't remember what time it is. Sometime in the
Matthew Russell:morning, I think it is going to be with I think the industry
Matthew Russell:leader about RFID and asset protection, Joe Cole, and a guy
Matthew Russell:by the name of Randy Dunn, who was with Zebra corporation. So I
Matthew Russell:would encourage you guys to sign up for that one, we're gonna go
Matthew Russell:deep, and it's going to be all things asset protection, loss
Matthew Russell:prevention as it relates to RFID. Just just just, you know,
Matthew Russell:I'm getting another question around. This is an RFID for
Matthew Russell:retail, but they would be very interested in hearing more about
Matthew Russell:RFID possibility in general contracting building for
Matthew Russell:international retail, specifically remodeling
Matthew Russell:reconstruction sites for Jeep where GPS man named Mike
Matthew Russell:sandspit, RFID could so plant that seed for what it's worth.
Matthew Russell:We got about five minutes left, I want to I want to be
Matthew Russell:sensitive, make sure that we start started on time and stop
Matthew Russell:on time was just stopped a couple of minutes early. Here's
Matthew Russell:I guess I got a couple. And by the way, I got through about
Matthew Russell:four of the questions I put together for these guys. Great
Matthew Russell:answers and great questions coming from the audience. So
Matthew Russell:thank you for that. But I think the one thing that I say there's
Matthew Russell:two, okay, Matthew, I'm gonna jump to you and say, What is
Matthew Russell:your vision for RFID? In retail, I mean, you're, you're obviously
Matthew Russell:fairly new in this space, but you are the guy who's just as
Matthew Russell:tapped on the shoulder and say you own RFID at retail, so
Matthew Russell:versus where we are today? Where do you see this thing going two
Matthew Russell:to three to four years from now?
Matthew Russell:I think it's it goes beyond just RFID. In the future. I think
Matthew Russell:like Justin said earlier, it really is the shift to serialize
Matthew Russell:data as a whole. And that requires a complete overhaul of
Matthew Russell:the existing systems. It's an accounting thing of moving
Matthew Russell:towards individual units. And so I think that's, that's going to
Matthew Russell:change. And you know, I don't even think we've talked about
Matthew Russell:serialized checkout yet. But when we move towards that, you
Matthew Russell:know, being able to identify on the individual level when we're
Matthew Russell:selling units, and then having those leave the stores. I think
Matthew Russell:that also opens up opportunities for asset protection and like
Matthew Russell:you said earlier, not just identifying what we need to
Matthew Russell:correct, but also what's causing that. I think from an RFID
Matthew Russell:perspective, that's where we're going to begin to look is not
Matthew Russell:just what do we have in our stores? How do we count that,
Matthew Russell:but looking further upstream, and then looking downstream at
Matthew Russell:shrink, and then beginning to be proactive there. So from my end,
Matthew Russell:that's, that's where I feel like RFID is gonna move, you know,
Matthew Russell:looking at fixed infrastructure solutions, looking at DC's,
Matthew Russell:manufacturing exits from stores, choke points there that we can
Matthew Russell:capture and use more data, rather than just identifying
Matthew Russell:what do we have in the store? All the way at the end of the
Matthew Russell:supply chain? All right,
Matthew Russell:we'll put you on the spot. Do you see a day where between RFID
Matthew Russell:and computer vision, I can have a seamless checkout experience?
Matthew Russell:That doesn't make me go through a register?
Matthew Russell:I hope so. I mean, I think it depends, like depends on the
Matthew Russell:products. I think there's a lot of variables. But I know that
Matthew Russell:there are a lot of retailers now that are working and looking at
Matthew Russell:solutions like that. And I think we saw that start with with
Matthew Russell:Amazon kind of lighting that fire with the bigger stores. But
Matthew Russell:now it's yeah, there's there's plenty of retailers out there
Matthew Russell:that I know are exploring different options like that. So
Matthew Russell:yeah, I mean, I wouldn't be surprised if but if it did
Matthew Russell:become something in the future.
Matthew Russell:Gotcha. Gotcha. Thank you. And question for you, Justin.
Matthew Russell:Anything that I didn't ask that's not on your mind when it
Matthew Russell:comes to RFID? Retail? What did I not ask that I should have
Matthew Russell:asked him? Well, what's the what's the burning things that
Matthew Russell:are going on in your hearing conversations? Again, no
Matthew Russell:confidential data should be shared. But what are the things
Matthew Russell:that are on people's minds that haven't come up with this
Matthew Russell:conversation?
Justin Patton:The biggest topic in retail supply chain now in
Justin Patton:the future. And the biggest thing for RFID is 2d barcodes,
Justin Patton:like the future of RFID. Weird is it as to say is 2d barcode to
Justin Patton:data matrix. We are about to as an industry, whether everybody
Justin Patton:wants to or not shift to serialized unit level tracking
Justin Patton:at the barcode for checkout, UPC barcodes, the 1d barcodes, G
Justin Patton:tins, are on their way out. And we've already seen a few
Justin Patton:retailers get their use got some folks like h&m, Adidas, and Nike
Justin Patton:and some of the others that are really pushing that way. But GS
Justin Patton:one has a major initiative for 2027. To try to get everybody
Justin Patton:over there, a lot of the retailers have already done
Justin Patton:national studies on whether they have images that are capable of
Justin Patton:capturing a 2d barcode or 2d data matrix for checkout
Justin Patton:systems. And for brands and brand manufacturers, that's a
Justin Patton:big responsibility shift. It's not just RFID tags, and these
Justin Patton:things are serialized, they will have to put a serialized barcode
Justin Patton:on all those units, and it will be reconciled back with the RFID
Justin Patton:tags on there, we've already been down this road with some
Justin Patton:other industries like aviation, and that is going to be on the
Justin Patton:retailer side, it is a massive change in their data handling, I
Justin Patton:mean, you're talking about restructuring the entire
Justin Patton:inventory management systems of all of their warehouses, all of
Justin Patton:the retail stores, the smaller retailers are going to be a
Justin Patton:little bit more flexible and agile, and I think they're gonna
Justin Patton:get there faster, the bigger retailers, it's going to take
Justin Patton:them a while. So if you're working for a retailer brand,
Justin Patton:and you do not have a team already in place that's focused
Justin Patton:on on serialized inventory, or 2d barcodes, or at least one
Justin Patton:person, I will be very concerned because you're you're about to
Justin Patton:get left behind. Because what happens is once we moved to
Justin Patton:those serialized accounting systems, all the rest of this
Justin Patton:stuff, just begin. It's easy. The biggest problem that we have
Justin Patton:in retail is the approximations that happen when we move to
Justin Patton:quantity accounting, that changes the annual financial
Justin Patton:auditing, it changes the Cycle Count process, it changes the
Justin Patton:claims, conversation, shrink everything, like it'll be the
Justin Patton:probably we won't even recognize what retail supply chain as an
Justin Patton:industry looks like in 10 to 15 years. And that's the thing
Justin Patton:that's the most exciting to be a part of, but it's all you know
Justin Patton:it and accounting at this point, just making sure they get their
Justin Patton:stuff, putting it in place. But it's weird after 15 or 18,
Justin Patton:almost 20 years. The future of RFID is barcode, but but it is
Justin Patton:that's where it's going.
Matthew Russell:Well, two things for you real quick.
Matthew Russell:Number one, we did a podcast with cinthol who's part of the
Matthew Russell:RFID lab and Myron Burke and I think Jonathan Gregor from GS
Matthew Russell:one, it's out there on the conference and say conversations
Matthew Russell:at retail site and the name of it was the ID in RFID. Because
Matthew Russell:ID the ID is the data part and it can be radiofrequency
Matthew Russell:identification or could be a barcode it doesn't have to be so
Matthew Russell:it's the serialized portion. Go back and check that if you're
Matthew Russell:interested if you're the second thing is the procedure or the
Matthew Russell:direction that GS one has taken just Google sunset 2027 that's
Matthew Russell:the that's the acronym that they've used. And that's that
Matthew Russell:will help to provide people that have registered maybe Justin we
Matthew Russell:ought to get on up what That's it wrong.
Justin Patton:Sunrise. So I did the same thing. Oh, they get so
Justin Patton:annoyed. I call it sunset 2027. I was like, no, no, we're not
Justin Patton:sunsetting we're sun rising. It's a optimist.
Matthew Russell:So I just made the GS one marketing people mad,
Matthew Russell:but they'll get over it. Yeah, it's the same idea, though. It's
Matthew Russell:actually everything is going to be serialized item, whether it's
Matthew Russell:RFID or not. Maybe just a you and I and Jonathan jump on a
Matthew Russell:podcast at some point in time to help to help the industry out.
Matthew Russell:Well, I'm gonna wrap this up, we got about four minutes left,
Matthew Russell:just Matthew, thank you, welcome. You're gonna take this
Matthew Russell:Thanks Mike.
Matthew Russell:farther than we've been able to take it 20 years, when you
Matthew Russell:finish out your career, you'll be able to say, I remember
Matthew Russell:talking about Justin and when Mike about maybe one of these
Matthew Russell:days, we could use this for asset protection purposes. So
Matthew Russell:you're, you're coming in just at the right time. We appreciate
Matthew Russell:that adjusting just for you. You and I have been working together
Matthew Russell:for 20 years. It has been fun. It has been challenging, but
Matthew Russell:there's never been a boring moment. There's always stuff
Matthew Russell:going on in this space. And, and I appreciate your friendship.
Matthew Russell:And I appreciate that. The one thing I did want to mention we
Matthew Russell:are we are going to be kicking off at onhand accuracy study, I
Matthew Russell:want to do a shameless plug. Justin is working with Matthew,
Matthew Russell:and about what I call the academic Dream Team. Dr. Bill
Matthew Russell:Hargrave from the University of Memphis, Dr. Glenn Ricci from
Matthew Russell:supply chain at Auburn. And Dr. Matt Waller from the University
Matthew Russell:of Arkansas, we're gonna go work with some retailers to be
Matthew Russell:announced yet to measure the impact of on hand accuracy to
Matthew Russell:sales very specifically, if I change my on hand from 55 to 60.
Matthew Russell:What is the impact of sales because everybody assumes it's a
Matthew Russell:good thing, but I don't think we have any empirical evidence. So
Matthew Russell:just more to follow on that. But Justin, Matthew, thank you very
Matthew Russell:much for your time. Y'all have a great weekend safe drive to
Matthew Russell:Atlanta. And thank you, everybody for participating in
Matthew Russell:today's call. Thanks. Hey, thanks. Mike,
Mike Graen:Well, I hope you enjoyed that conversation with
Mike Graen:the Auburn RFID lab. Join us next time as we have another
Mike Graen:special guest to talk about RFID and asset protection. Join me as
Mike Graen:we welcome Joe Cole, who is the vice president of asset
Mike Graen:protection for the Macy's Corporation. He'll be talking
Mike Graen:about how he's leveraging RFID and other technologies for the
Mike Graen:asset protection space at Macy's. See you then