Most retailers know the importance of efficient inventory management processes and stock taking. With RFID technology, you can save resources and be sure which items are in stock and in store.
Watch a video of RFID in a retail store.
The importance of efficient inventory management processes
Warehouse management is a well-known challenge in today’s retail. Without sufficient insight into inventory, supply chain, and processes, stores may lose sales due to missing items in the warehouse. The lack of overview affects the overall customer experience. If a customer wishes to buy a product of a certain size or color and the item is out of stock, the store not only losses sales but also customer satisfaction.
Do you have the proper systems in place to ensure you do not have any items in the backroom that should be sold in the store?
RFID for inventory management and stock taking
RFID (Radio Frequency Identification) is used to identify and detect individual objects, including products and items. The technology is controlled by radio waves that communicate between a tag on the product and the reader.
For retailers, RFID technology for inventory management has a number of advantages:
- RFID tags are serialized, enabling unique identification of each item in your supply chain, inventory, and store
- High read rate. An RFID reader can count several items per second
- Line of sight not required. An RFID reader can identify items several meters away – even if the item is behind a wall or in a cardboard box.
What is the result of using RFID to optimize inventory management?
University of Leicester has recently published a new report titled “Measuring the Impact of RFID in Retailing: key lessons from 10 case-study companies“. The report shows the results of 10 European retailers using RFID technology in their businesses – and the results are impressive. According to the report, RFID increased sales in the stores. 7 of 10 retail companies experienced increased sales in the range from 1.5 to 5.5%.
RFID also improved the accuracy of the storage. Before RFID technology, companies had 65-75% accurate inventory. This accuracy increased to 93-99% with RFID technology. The solution also increased inventory availability and reduced staff costs. All 10 companies said they achieved a positive return on their investment in RFID.