Integrated RFID systems minimize out-of-stock situations, provide real-time inventory data analytics and improve the customer experience. But how exactly does it do this?
For example, RFID enables retailers like clothing wholesaler Advanced Apparel to track every item that leaves its store through fixed readers. It can be actioned to trigger alerts or used as evidence against employees accused of theft. For more RFID retail, check this out.
Inventory Accuracy
Regarding inventory management, accurate data is the key to running an efficient retail store. That’s why it can be frustrating for a staff member to find out that the pair of jeans they need to sell on Tuesday was sold on Monday.
Using RFID, retailers can perform cycle counts with 25 times more speed and accuracy than scanning with barcodes. They can automatically trigger reorders at safety stock levels without manual spot checks.
Inventory Management
At its simplest, RFID allows retailers to reduce time spent taking inventory and restocking, boosting productivity. It also offers a range of other capabilities, such as item-level tagging for protection against shoplifting (EAS) and self-checkouts for customers.
The ability to scan multiple tags simultaneously and from a greater distance means that cycle counts are far faster than if you’re using barcodes. It also speeds up reordering, as you can automate it at safety stock levels without waiting for an actual physical count. For more RFID retail, check this out.
Retailers can then use this visibility to serve a buy online, pick up in-store (BOPIS) experience for customers, reducing customer pain points and ensuring the right product is always on the shelf. In one example, fashion retailer River Island boosted their inventory accuracy from 65-75% to 98% by adopting an effective RFID solution.
Inventory Reordering
Retailers can use RFID to reduce the time it takes for them to take inventory and to make accurate reorders. It also provides a wealth of data points to help retailers improve their understanding of operational processes, physical facilities, vendor performance and customer demand.
Without RFID, retailers can only guess at the accuracy of their inventory. But with RFID, companies can experience 75 to 90 per cent inventory accuracy, which translates into a 3 to 4 per cent sales uplift.
Inventory Tracking
Tracking inventory is critical for retailers, and RFID offers several benefits beyond simple barcode scanning. With a proper RFID system, product data is automatically updated as items move throughout the store.
It can help retailers with their omnichannel fulfilment. Shoppers who buy online and pick up in-store want to know the product available in their chosen location. RFID can make this possible with improved inventory accuracy that allows for better product descriptors than a generic barcode.
RFID also helps reduce distribution centre labour costs. Entire shipments can be checked in and counted instantly, eliminating time-consuming manual processes. The technology can help staff find products more efficiently, cut cycle count times and set reorder points to restock at safety stock levels automatically.
Security
For retailers, inventory accuracy is a huge priority, particularly for omnichannel fulfilment. The technology makes it easier to take regular stock counts, update inventory records and ensure that shoppers are getting accurate information about availability. For more RFID retail, check this out.
RFID also helps prevent theft and shrinkage, which accounts for almost half of retail losses. It is easy to spot when an item is removed from store premises without being scanned. It can prevent “sweethearting”, – where a store employee gives unauthorized discounts or free things to acquaintances.
In addition, RFID alerts staff when a tag is not deactivated at the point of sale. It can prevent “return fraud”, where a customer returns a stolen or worn item to the store for cash. It is impossible with EAS tagging systems, which rely on customers to manually deactivate the security tags before leaving the store.
RFID is the fastest way to inventory products, replacing manual scanning and counting with high-speed, accurate tracking and data collection. It can also reduce cycle count time and restocking cycles by automatically alerting the supply chain when products reach safety stock levels.