Sheela Foam, one of the largest manufacturers of mattresses, was grappling with the issue of unauthorized dealer selling of its mattresses under the Sleepwell brand. Due to unauthorized selling, Sheela Foam faced a loss of 5-7% in the top line. As Sleepwell operates at an average margin of 15%, loss of 5-7% affected its bottom line.
To address this situation, the company turned to mobility and decided to deploy an RFID chip in the mattresses for tracing the product supply source for an unauthorized dealer. The RFID technology was then integrated with Sheela Foam’s home grown ERP ‘greatplus,’ so that the same unique product number could be stored for production slip generation and MRP label. Handheld mobile devices with RFID readers were then provided to mystery customers, so that they could carry the same to an unauthorized dealer to collect the unique product numbers online.
“Earlier, to track unauthorized dealer selling, we used to send a mystery customer to purchase our own product. We were spending `50- 70 lakh per annum on the purchase of our own products, and 90-95% of this purchase was a waste. With RFID implementation in place we no longer need to buy the product as the unique product number gets automatically collected in the mobile devices with RFID readers given to the mystery customer in an unauthorized shop,” says Pertisth Mankotia, Head-IT, Sheela Foam.
Once the serial numbers are collected via RFID readers, the dispatch history of the product movement can then be known very easily. The product supply source, ie, the distributor or the dealer who had sold the product to an unauthorized dealer can easily be identified. “With RFID implementation, we are able to add around `3-4 crore to our bottom line and have increased our top line by `25-35 crore,” updates Mankotia.
With the implementation, the company has been able to reduce unauthorized selling by nearly 50%.
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