Depending on the R & D, production process, market timing and sales cycle (amongst other factors) — some ventures can take 3, 5, maybe 10+ years to really gain traction.
In short, the company has developed an inventory management system using “item level RFID” — tags on individual items — combined with backend SaaS for real time inventory accuracy in a retail environment. “It’s used for positioning, demand and alerting (replenishment modeling), and is proven to increase revenue by reducing stock out and overstocking,” he says.
Building off two decades with Ceridian, Feldman was previously CTO at Sage Health Management Solutions and CEO of Boundary Medical (two health care wins),
The technology was originally positioned at the supply chain level (think: cases & pallets), but there wasn’t a significant enough impact, since that process is already streamlined and tracked significantly (see Walmart’s failed initiative). Where the ball drops, according to Feldman, is at the store level — on the floor & shelf.
Feldman says POS current inventory methods can be up to 30% inaccurate and the hand held scanning method is both labor intensive and subject to human error, “exposing real pain points”.
The product is ideally suited for items with complex SKU’s and high volume, such as apparel, jewelry, media. Last fall, a group of leading retailers, manufacturers, suppliers, industry associations, technology providers introduced a broad-based initiative to guide the adoption of radio frequency identification technology in retail — creating a clear opening for players like Seeonic.
The firm has raised $1.4m to date and “see’s exit with bigger player in retail analytics/RFID space. We’re about to undergo our second pilot with a large big box retailer,” he leaves me with…