During Inditex's annual general meeting on Tuesday, the chairman and CEO of the Spanish holding company, Pablo Isla unveileda new project.
Known as the radio frequency identification technology (RFID) implementation project, the project aims to to equip Inditex's brand stores with radio-frequency garment identification technology. The new system consists of microprocessor based chip tagging plan which embeds the chips into the plastic alarms that are attached to Inditex's brands garments.
This cutting-edge technology would allow Inditex to individually track and follow garments, from the moment the items leave the logistics platforms until they are sold to shoppers in store and help improve its already rapid supply chain.
“[The] implementation of this next-generation technology is one of the most significant changes in how the group’s stores operate,” said Isla during the meeting. The RFID system codes each garment in Inditex's logistics centers, which means that when garment shipments arrive in its twice a week, the system is able to 'pinpoint' which sizes and models need to be restocked.
The system also boosts customer service by being able to immediately identify whether a store has a particular garment available in the requested size or at a near by or online. Inditex has already installed this technology in over 700 Zara stores and is preparing to roll it out to other stores.
All of Zara's logistics centers currently have the technology installed and Indited aims to have the project operational in all Zara stores world wide by 2016, with plans to introduce to technology to all chains afterwards.