Carnaval implements RFID solution using UPM Raflatac tags and Digilogics’ inventory management system

(UPM Raflatac, Fletcher, USA, October 6, 2009) – Carnaval de México, the leading designer of textiles and children’s fashion in Mexico, has deployed one of the country’s first item-level RFID tagging solutions for apparel. Carnaval is using RFID technology to track and trace more than one million garments annually.

The RFID solution, designed by Digilogics SA. De CV. and UPM Raflatac, is one of the largest apparel item level deployments in the Americas and is 100 percent audited. The solution provides Carnaval with flawless data it can use to conduct perpetual inventory and optimize production processes.

As the sole licensed distributor of children’s fashion for global brands such as Disney and Hello Kitty in Mexico, Carnaval is responsible for the design, manufacture and distribution of high quality, trend-setting garments that are sold throughout the country by leading retailers.

By implementing RFID technology, Carnaval sought to improve critical inventory processes, reducing human error from its pick and pack operations, while accelerating the speed of merchandise processing. In the next phase of the project, Carnaval will integrate RFID data into its ERP systems, using new insights to fine-tune all aspects of its manufacturing and distribution operations. Carnaval also plans to help its retailer customers implement interactive RFID-enabled sales solutions, which use a variety of innovative tools to reduce out-of-stocks, enhance product security and cross-sell and up-sell merchandise.

The RFID solution uses UPM Raflatac’s ShortDipole UHF RFID tags equipped with Impinj's Monza™3 tag chips and Digilogics’ system, comprised of inventory management software, an RFID-enabled auditing station and fixed and handheld RFID readers and antennas from Impinj.

“We look forward to working with our partners to leverage the power of RFID technology to drive merchandise sales and reduce shrinkage and theft,” says Jacobo Penhos, Owner, Carnaval.

After being manufactured, all garments are individually tagged and placed in boxes or on hangers; grouped merchandise is then associated with a master RFID-tagged label. After arriving at Carnaval’s distribution center, items are read five times during processing, ensuring that merchandise is accurately and swiftly packed for customer orders, while also automating the reconciliation of inbound and outbound goods.

“RFID technology can help manufacturers drive margins by removing waste and inaccuracy from their operations and by improving their ability to measure and meet industry demand,” says Luca Pastorello, Partner, Digilogics SA. De CV.

“Companies like Carnaval depend on our RFID tags’ perfect reads to improve internal operations and deliver best-in-class service to their customers”, says Jan Svoboda, Sales & Marketing Director, Americas, RFID, UPM Raflatac.

For further information, please contact:
Mr Jan Svoboda, Sales and Marketing Director, Americas, RFID, UPM Raflatac, Tel. +1 805 312 4679
Mr Luca Pastorello, Partner, Digilogics SA. De CV., Tel. +52 555 280 6647
Mr. Jacobo Penhos, Owner, Carnaval de México S.A. de C.V., Tel. +52 555 2670770

About UPM Raflatac
UPM Raflatac, part of UPM's Engineered Materials business group, is one of the world’s leading suppliers of self-adhesive label materials and the world’s number one producer of HF and UHF radio frequency identification (RFID) tags and inlays. UPM Raflatac has a global service network consisting of 14 factories on five continents and a broad network of sales offices and slitting and distribution terminals worldwide. UPM Raflatac employs 2,600 people and made sales of approximately USD 1.4 billion (EUR 1 billion) in 2008. Further information is available at www.upmrfid.com.

About Digilogics SA. De CV.
Digilogics S.A. de C.V., a Mexico-based labelstock converter, creates radio frequency identification (RFID) solutions for process-intensive industries including retail apparel, government services and supply chain management, among others. The company’s mission is to become the leading RFID label provider in Mexico by developing customized solutions for industry customers that deliver exceptional quality, performance and ROI. Digilogics’ partners include RFID manufacturers and solution integrators 5Stat, Convergence Systems Limited, Impinj, UPM Raflatac, Venture Research, Inc. and Zebra Technology Corporation. For more information, please visit www.digilogics.com.mx.

About Carnaval
Carnaval de México, a national leader in textile design and juvenile fashion for 50 years, is a company concerned with obtaining the best quality in its products, as well as conserving the concept of more advanced fashion for babies and children. The company is also devoted to shaping dreams, ideas, designs, tendencies and tastes based on international innovation and creativity for the Mexican society and international markets and has reached the singularity and recognition of its clients thanks to the goals obtained by the company's commercial proposal.