DAFC Implements Comprehensive RFID System to Enhance Retail Operations

Project Overview

DAFC, a member of IPPG Group, is the official distributor of some of the world’s most prestigious luxury brands, including Rolex, Tiffany & Co., Cartier, Burberry, Versace, and others. Currently, DAFC operates over 50 brands, 50 stores, and employs more than 1,000 staff across Vietnam.

To optimize operations and inventory management, DAFC selected 1Gate to deploy an integrated RFID hardware and software solution across its two central warehouses and more than 50 retail stores. The implementation was completed within just three months and brought significant improvements to DAFC’s operational efficiency.

Business Challenges

DAFC’s retail system includes two central warehouses in Ho Chi Minh City and Hanoi, along with 50+ stores nationwide. The product categories include:

Luxury: jewelry and watches
Fashion: apparel, handbags, footwear, and accessories
Tech: phones, laptops, and accessories

Previously, all items were identified and managed using barcodes, with size-specific labels for each product box depending on product type. However, the inventory and store management process faced several key issues:

Time-Consuming Product Search: Finding specific products was done manually, with staff relying on visual inspection without effective tools to speed up the process.

Inventory Counting Difficulties: The vast quantity of products made barcode scanning time-consuming and labor-intensive.

Labor-Intensive Outbound Process: Outbound stock required manual barcode scanning of each item, increasing the risk of human error.

Implementation Plan

Maintain the existing IT infrastructure, goods flow, and operational processes.

Apply RFID tags to all DAFC merchandise. Each item is tracked from the moment it enters the central warehouse until the point of sale at the stores.

Install both handheld and fixed RFID readers to identify and scan item data efficiently.

Seamlessly transition from barcode-based management to RFID-based management using new devices to enhance labor productivity and improve inventory accuracy.

Integrate RFID data flows with the existing ERP system to ensure minimal disruption to current business operations and software functionalities.