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“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 Andre Nilsen
Logistics Manager at XXL

 

At XXL they say guests instead of customers.

XXL: RFID technology eliminates misdeliveries and increases customer satisfaction

Giant Nordic Sports retailer XXL uses RFID labels, when they send parcels to their stores in Norway. XXL Logistics Manager Kim Andre Nilsen shares here how this RFID technology ensures that parcels are sent to the right store, remove manual scanning routines, improve customer experience, speed up delivery and much more.

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” (translated: 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.

“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,” says Kim Andre Nilsen, Logistics Manager at XXL, where they say guests instead of customers. 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. ”

It is not just at the warehouse, that XXL experiences the benefits of RFID labels, but also in XXL stores and at customers:

XXL warehouse:

  • Automatically register, validate and status update all parcels on a pallet at once before leaving the warehouse.
  • Removing time spent on manual scanning and potential errors when creating shipments.
  • Faster handling of parcels.

 XXL store:

  • Automatically register, validate and status update all parcels on a pallet at once upon arrival at the store.
  • Creates more time to service customers in the store.
  • Faster notification to customer that their order is ready for pickup.

Customer:

  • Improved tracking.
  • Faster notification to customer that their order is ready for pickup.
  • Faster delivery.

It is in collaboration with Lyngsoe Systems and Consignor that XXL has implemented RFID technology in their shipment process.

This is how it works
XXL already used Consignor for label print, and when Consignor Country Manager, Henning Backe, introduced Kim Andre Nilsen for Lyngsoe Systems, who delivers RFID technology, Kim did not hesitate to test the new technology. Consignor has partnered with Lyngsoe Systems, which enables validation of printed parcel IDs from Consignor. This is what the shipping process with RFID labels looks like at XXL:

  1. XXL books the shipment and print an RFID label via Consignor.
  2. XXL sorts RFID labeled parcels by destination.
  3. XXL scans entire pallets with RFID labeled parcels with RFID scanner in the warehouse and updates the parcels’ status.
  4. Lyngsoe Systems validates the destinations of the parcels and locates whether there are parcels that should not be on the pallet.
  5. XXL sends pallets directly to XXL store, where the pallet is scanned and the individual parcels are automatically registered, validated and status updated.

Henning Backe, Country Manager at Consignor, is happy to be able to make XXL’s RFID wish come true:

“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. Together with Lyngsoe Systems, Consignor delivers a standard RFID solution that easily can be implemented in a shipping process. ”

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.


Text by Consignor, news@consignor.com

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Facts about XXL

  • XXL has warehouses in Norway and Sweden, but as for now it is only in Norway that they use RFID labels.
  • XXL has 34 stores in Norway, 25 in Sweden, 15 in Finland and 4 in Austria.
  • XXL sends 1500-2000 RFID labeled parcels a day from the warehouse in Oslo.
  • XXL uses Consignor to print labels, create shipments, send notifications to customers, track shipments, and Consignor’s Scan App for scanning parcels for pickup at the store.
  • Consignor is installed at XXL‘s warehouses and in their stores.

Facts about RFID
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. When the parcel gets close to a RFID scanner, the chip in the label is registered automatically and updated with EDI-data on the shipment. That way, you don’t have to hand scan the parcel. When a RFDI label has been scanned, it is possible to add events to the shipment, eg. “Your parcel has been shipped” and send a notification to the customer at the same time.

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