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Falabella

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THE CHALLENGE

Improve business processes to support regional growth. Already an established regional retail leader, the

Falabella Group is investing heavily in aggressive expansion inSouth America, opening 32 new stores in 2007 alone. With this growth, Falabella’s executives recognize that continued expansion will place ever heavier demands on the company’s business processes, from the development of brands and products, to systems, logistics, marketing, store designs, technologies and customer service methodologies. So, together with their commitment to expansion, they have made a similar commitment to improving process management and increasing customer satisfaction.

THE SOLUTION

One store, one overriding goal – accurate inventory. Falabella planned a four-month pilot program in one of itsSantiagodepartment stores, close to corporate headquarters. To ensure careful monitoring and control of the test program and to ensure project buy-in across distinct business operations, the retailer had committed to weekly RFID pilot project meetings between the technology integration group and business/store operations.

THE RESULTS

Beyond expectations. Falabella’s pilot RFID system quickly proved to deliver 98.4 percent inventory accuracy, enabling staff to count up to 9,000 items in one hour using the mobile cart. During the trial, the store saw a 25 percent reduction in out-of-stock occurrences among the tagged items.

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