LPP distinguished with the Digital Excellence Awards
It is the second time already that he jury of the Digital Excellence Awards competition awarded digital achievements of the Polish clothing manufacturer. In this year’s edition, LPP was honoured with an award in the Digital Capabilities category for implementing RFID technology in its flagship brand – Reserved.
Digital Excellence Awards is a competition aiming to honour the leaders of the digital transformation and to honour those companies that have implemented a new business model, thus making their organisations more effective and innovative.
For the first time, the jury of the Digital Excellence Awards honoured us with an award in 2018 for an innovative proprietary Store Vision application, which was recognised for its high operational efficiency. We made a commitment then that we would not stop in our digital transformation activities and we kept our word. We are very pleased that in this year’s edition of the competition jury honoured our biggest digital project so far, i.e. the implementation of RFID – explains Jacek Kujawa, Vice-President of the Management Board, LPP.
The jury appreciated above all high digital competences of the Polish clothing manufacturer, embracing new technologies and very well defined objectives of the RFID project, and at the same time excellent implementation of the technology which has brought concrete value to the organisation.
The RFID project, i.e. an electronic tag operating on the basis of a radio frequency identification system, is a solution implemented in the stores of the Polish clothing manufacturer’s flagship brand, Reserved. It is based on original software fully created by the IT team of the Pomeranian company. The tag is used for remote product identification, which enables full and precise control over a single piece of clothing at every stage of product life, starting from the dispatch from the factory, through the distribution centre, to the delivery to the stores and the availability of products in the sales floor. The main objective of the project was to increase the operating efficiency of the stores and thus increase sales.
This is a unique project in which 140 people from various areas of LPP’s business, including 40 IT specialists, were involved at a crucial moment. We are the first clothing company in Poland and one of the few in the world to use RFID technology on such a large scale. And most importantly, the implementation of this solution was the fastest implementation to date worldwide, including the construction of an IT system from scratch – explains Jacek Kujawa.
During the RFID project, LPP changed, among other things, as much as 90% of the store processes, which eventually turned into concrete and measurable effects. This led to a tightening of the supply chain, enabling faster and more frequent stocktaking of goods in stores, thanks to which the company obtains accurate information about the inventory on an ongoing basis. The project has also contributed to the increase in the quality of the sales floor stocking, shortening the time of customer service at the checkout or optimising the acceptance of deliveries in the stores. The detailed knowledge of store stock levels obtained in this way made it possible to launch a new functionality, i.e. delivery of e-commerce orders directly from the stores located closest to the customer’s place of residence, rather than from central warehouses. Thanks to the implementation of the RFID system, the customers of the brands belonging to LPP gain a number of tangible conveniences related to their shopping experience.
The RFID project was so far the most extensive and the most complex technological project that we have implemented in LPP. We are all the more pleased that the jury of the Digital Excellence competition recognized the potential of this undertaking and appreciated our digital competences, considering us as digital innovators. I believe that the coming years will bring us many more opportunities to prove that we live up to such great mark, – comments Jacek Kujawa.
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LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 29 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 265 million pieces of clothing to three continents. LPP plays another important role as it employs over 24 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.