INTELLI TEXTILE | RFID TEXTILE SYSTEMS

Nike is revolutionising inventory management with RFID technology integrated into its sports shoes. This system automatically identifies each product, enabling stores and warehouses to accurately and efficiently monitor their stock. Nike has managed to increase its operational efficiency by automating 60% of the inventory in stores, warehouses and supply chain with RFID labelled shoes.

The biggest advantage of the RFID system is the instant tracking of stocks in Nike stores. Each of the products is marked with unique RFID tags, so that each product can be easily found and any shortages can be detected during sales.

RFID or NFC Tag Selection

The labels to be integrated into shoes are usually small and flexible. RFID tags use radio waves to transmit data, while NFC chips enable communication over shorter distances. Shoe manufacturers choose the appropriate label type according to the intended use of the products

RFID Tags: It is used to provide data transmission over long distances and is generally preferred for purposes such as supply chain management and inventory tracking.

NFC Tags: Over short distances, it is often used for user interaction (e.g. learning about the history of the shoe).

Integrating the tag into the shoe

RFID or NFC tags are placed on the inside of the shoe. They are often found hidden in the sole of the shoe, in the heel area or in the inner lining. These tags are placed during the production phase.

Sturdiness and Durability: The labels must be designed to withstand the conditions of use of the shoe. For example, waterproof and shockproof labels are preferred.

Location: The area where the label will be placed should be a place that is not easily accessible to users, but can transmit the correct data.

Data and Information Storage

RFID or NFC tags can be loaded with information about the product. This information can cover everything from the production date of the shoe, the materials used, to the end user.

Product Tracking: The current status of the shoe can be monitored by scanning the tags at every step in production, storage and sales points.

Personalised Data: NFC tags can allow users to interact with their smartphones to get more information about the product or access promotions.

Mobile Application and Interaction

NFC tags often provide interaction with mobile devices. By scanning the tag with an NFC-compatible phone, users can access product information such as shoe design features, manufacturing information, care instructions or special offers.

Personal Data: Can integrate with mobile apps to allow users to track health data or exercise data related to footwear.

Application in Warehouses and Store Outlets:

Nike has integrated RFID technology into all of its warehouses and store outlets. Starting in 2019, when Nike products are shipped to stores, each product is tagged with RFID tags, providing instant data for all stock updates with stores. During this process, Nike trained its employees to use the RFID system. Employees made inventory management more efficient by scanning products quickly.

Effects on Cost, Productivity and Brand Value

Nike has significantly improved inventory management and reduced operational costs by integrating RFID technology. While the system required a significant initial investment, in the long term it has increased the company’s efficiency by reducing inventory errors and speeding up business processes. Workload was reduced for employees, while providing accurate product information to customers increased confidence. Nike’s brand equity in the industry was further strengthened by this innovative step, as consumers favoured accurate and fast service.

Results and Impact on Employees

Nike states that the RFID system has made a huge impact on inventory management. The ability to quickly track products has helped to increase sales. Employees lost less time due to accurate tracking of inventory, and in-store stock shortages could be quickly identified. For employees, the ability for this system to work more efficiently has made their jobs easier and allowed them to manage the operational process with fewer errors.

Nike is very satisfied with the current success of this system and believes that RFID technology will become even more widespread in the future. This technology has given Nike a huge operational advantage by enabling fast tracking of products and increasing store sales.

Benefits to Customers

Nike’s RFID technology has had many benefits for customers. Accurate stock monitoring in stores makes it easier to find the product you want. Inventory shortages, especially on popular models, are reduced, and customers don’t have to struggle to find the sizes or colours they’re looking for in-store. Nike also states that RFID tags allow them to better understand customer behaviour and provide personalised service. For example, learning which products customers buy more often or what features they are interested in allows Nike to offer more relevant promotions and product recommendations.