Woolworth “Chips” Away at Inventory Shrinkage Through RFID Initiative

Woolworth “Chips” Away at Inventory Shrinkage Through RFID Initiative

By
Mike Gozycki, M. Johnson, Hau Lee
2006|Case No.GS51

Geoff O’Neill had led the implementation of a ground-breaking Radio Frequency Identification (RFID) inventory tracking system for Woolworths in the U.K. Bringing together leading edge technologies to build the first such commercial tracking system, Woolworths had realized dramatic reductions in inventory shrinkage, improved bookstock accuracy, reduced labor costs, better assets management, and increase transport efficiencies. However, as of late 2003, the system had only been implemented for a relatively small number of stores and a more widespread roll-out would require an investment of £3 million. O’Neill had to determine whether or not he should recommend the expansion of the RFID program. And, if so, he needed to build a business case to convince Woolworths’ executives that RFID was a high-value, low-risk technology ready to move beyond the “sandbox phase” and into Woolworths’ entire supply chain.

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