Intel Corporation (NASDAQ:INTC) Helping Levi’s Improve Store Efficiency Through IoT
Intel Corporation (NASDAQ:INTC) is helping clothing company Levi to improve store efficiency through Internet of Things (IoT) implementation. The program involves putting microchips tags on the merchandise at Levi’s retail stores for easy inventory tracking. Currently, Intel and Levi’s are piloting the technology at the latter’s retail store in San Francisco.
With the personal computers business cooling, Intel Corporation (NASDAQ:INTC) is looking for new markets for its chips with the IoT being seen as a promising market. As part of its IoT drive, Intel is working with Levi’s to tap into the power of the IoT to improve store operations.
Inventory accuracy drives sales
Intel’s CEO, Brian Krzanich, recently said that they were helping Levi’s put wireless digital tags called RFID on its items in the store to enable real-time inventory tracking. The overall idea is to improve inventory visibility or accuracy at Levi’s retail outlets. It has been shown that increasing inventory accuracy increases sales. For example, a 3% increase in inventory accuracy can lead to at least 1% lift in store sales.
With digital tags on store items, Levi’s is able to track the movement of inventory, thus allowing for quick restocking of fast-moving items and scaled-down stocking of slow-moving inventories. That leads to more efficient store operations, which also saves the retailer some operating costs.
Once Intel Corporation (NASDAQ:INTC) has built its microchips on the items at Levi’s stores, the data generated is uploaded and analyzed on Intel’s IoT platform in the cloud. As such, Levi’s store managers can remotely monitor inventory movements and replenish or reduce stock depending on the sales trend registered on the virtual sales monitoring system.
Each company’s dream
With the IoT implementation, Levi’s appears to be betting that digital investment will enable it to overcome the myriad challenges affecting the retail industry.
For Intel Corporation (NASDAQ:INTC), selling chips to customers outside personal computer vendors unlocks new revenue opportunities. Although IoT is a promising market, it currently accounts for only a tiny fraction of Intel’s total revenue. IoT contributed just about 4% of Intel’s $14.4 billion sales in the last quarter.
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