01
Client Profile & Background
A large retail chain in Indonesia, operating over 50 stores across Java and Sumatra, faced significant challenges in inventory management. The company, a leader in fashion and electronics, had annual revenues exceeding IDR 2 trillion. Their existing inventory system relied on periodic manual counts using barcode scanners, which were time-consuming and prone to errors. With a product catalog of over 100,000 SKUs, the company struggled to maintain accurate stock levels, leading to frequent out-of-stocks and overstock situations. The supply chain included a central warehouse in Jakarta and three regional distribution centers, each handling thousands of inbound and outbound transactions daily.
The company's IT team had previously implemented a basic warehouse management system (WMS) but lacked real-time visibility. Inventory accuracy hovered around 85%, resulting in lost sales estimated at IDR 50 billion annually. The management recognized the need for a more automated solution to support their growth and improve customer satisfaction. They sought a partner with expertise in IT infrastructure and server & storage to deploy a robust RFID system.
02
Technical Challenge
The primary technical challenge was the lack of real-time inventory visibility across the entire supply chain. Manual barcode scanning required employees to physically scan each item, which was impossible for high-volume periods. The company experienced a 12-hour delay in updating inventory records after goods receipt, leading to inaccurate stock counts. Additionally, the existing WMS could not handle the data volume from RFID readers, requiring middleware capable of processing thousands of tag reads per second. Network infrastructure was also a bottleneck, with some stores having limited bandwidth for real-time data transmission.
Another critical issue was the high shrinkage rate of 3.5% (industry average 1.5%), attributed to theft, administrative errors, and supplier fraud. The company needed a solution that could track items from receiving to point of sale, enabling alerts for unauthorized movements. The integration with their legacy ERP (SAP ECC 6.0) was complex, requiring custom APIs and data mapping. The IT team estimated that without proper hyperconverged infrastructure, the system would fail to meet performance SLAs. The challenge was to deploy a scalable RFID system that could handle 10,000+ tag reads per second per store, with 99.9% uptime.
03
Implemented Solution
Intilogy designed and deployed a comprehensive RFID solution using Zebra MC3390R handheld readers and fixed Impinj xArray gate readers at all store entrances and warehouse dock doors. UHF RFID tags (Impinj Monza R6) were applied to each item at the source. The middleware was built on Microsoft Azure IoT Hub, processing tag data in real-time and integrating with SAP ECC via Veeam for data protection. For network reliability, Cisco Catalyst switches and Ruijie access points were installed to ensure low-latency data transmission.
The solution included a custom dashboard built on Microsoft Power BI, providing real-time inventory levels, cycle count automation, and shrinkage analytics. The system was configured to trigger automatic reorder points when stock fell below thresholds. For disaster recovery, Synology NAS devices were deployed at each distribution center for local backups, with replication to a hybrid cloud environment. The entire deployment took 6 months, with phased rollouts to minimize business disruption.
04
Results & ROI
Post-implementation, inventory accuracy improved from 85% to 99.5%, reducing stockouts by 90%. The company reported a 70% reduction in manual labor for inventory counts, saving IDR 15 billion annually in labor costs. Shrinkage dropped from 3.5% to 1.2%, representing a savings of IDR 23 billion per year. The time to perform full inventory counts decreased from 3 days to 4 hours per store. Order fulfillment accuracy improved to 99.8%, and customer satisfaction scores increased by 15 points.
The ROI was achieved within 8 months. The system now processes over 5 million tag reads daily with 99.95% uptime. The company plans to expand RFID to its entire supply chain, including supplier tagging. The success of this project has positioned the company as a leader in retail innovation in Indonesia. For similar results, enterprises can explore backup & disaster recovery and cybersecurity solutions to ensure data integrity and protection.
