Nordic sports retailer XXL eliminates misdeliveries with RFID technology
RFID means Radio Frequency Identification and is a wireless technology which through electromagnetic fields transfer data which makes it possible to identify and trace objects. When it comes to delivery, it is possible to put a RFID chip into the freight label.
Since spring 2018, XXL has used RFID labels on the small parcels they ship from their warehouse in Oslo to customers in Norway with Posten/Bring‘s product
“pakke i postkassen” (which translates as: parcel in the mailbox).
However, Logistics Manager at XXL, Kim Andre Nilsen, also wanted to ensure the shipment quality of all online orders where XXL customers choose “pick up in store” and automate the routines associated with the preparation and shipment of these orders from the warehouse and arrival at XXL‘s own stores in Norway.
The automation should not only ensure that customers’ orders arrived at the right store, but also remove a number of manual scanning routines that were both time consuming and potential sources of error.
Kim says: “It costs a lot of money to correct a misdelivered order, even if it’s to our stores. In addition, it is a great annoyance for both the guests and us that we can not keep the delivery time we promised. With RFID, we avoid this from happening.”
Kim continues: “We just run a pallet of RFID labeled parcels under the RFID scanner here at the warehouse before dispatch to store. The RFID scanner scans all parcels on a pallet at once, and they are automatically registered, validated and status updated. That way, we immediately spot if there are parcels on the pallet that should not be there. It reduces misdeliveries and provides faster delivery. ”
XXL has implemented RFID technology in their shipment process in collaboration with Lyngsoe Systems and Consignor.
Henning Backe, Country Manager at Consignor, says: “There has been a lot of talk about the use of RFID in the transport and logistics industry over the past many years. But now, many companies with freight needs also show great interest in using RFID technology. ”
XXL has 34 stores in Norway, 25 in Sweden, 15 in Finland and 4 in Austria and it currently sends 1500-2000 RFID labeled parcels a day from the warehouse in Oslo.
XXL’s future plans for RFID extend beyond parcels to the mailbox and XXL stores.
“In the future, we will send even more parcels with RFID labels, and also to other countries. Soon all parcels at our warehouse in Oslo will be labeled with RFID labels and scanned by the RFID scanner before being loaded onto the trucks. RFID technology really quality assures delivery, and delivery is the key to success in e-commerce,” Kim Andre Nilsen concludes.