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RFID in Retail with Auburn RFID Lab (Part 2)
Episode 4518th October 2023 • Supply Chain LEAD Podcast • Supply Chain LEAD Podcast
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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.

Transcripts

Matthew Russell:

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

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