RFID Opportunities You Don’t Want to Miss

RFID is a familiar technology, but TSPs are finding innovative ways to use this technology to solve their clients’ pain points and provide value.

RFID technology has existed for several decades. However, new innovations are enabling uses that were completely unimagined when the technology was initially invented. As a result, the European RFID market is booming and is expected to reach USD 6.5 billion by 2027. Make sure you explore the opportunity to provide solutions for these use cases to maximize the value you offer your clients and revenues for your business.

• Loss Prevention

Loss prevention is a familiar application for RFID. In general, there are two paths to choose when deploying RFID to reduce theft and product loss. One is Electronic Article Surveillance (EAS), also known as the “beep at the door.” This system uses RFID tags that alert staff when items that haven’t been deactivated at checkout are leaving the store. The second is Electronic Product Code (EPC), which is used as EAS. This system is a more involved implementation, requiring its own software. That integration allows for greater data analytics, such as shrink visibility. In either case, you can address merchants’ growing need for solutions that help them mitigate risks and losses.

• Asset Management

One of the great money-saving uses of RFID is protecting the items that businesses have purchased for internal operations. Any industry can use RFID tags to track everything from machines, tools, instruments, and packing supplies. The ability to locate those items, rather than purchase additional assets, can lead to greater operational efficiency, fewer delays, and significant cost savings.

• Inventory Tracking

RFID allows teams to scan items without line-of-sight. So, even if shipments are still in a container or pallet, RFID can collect and enter data into the business’s management system. This saves labor hours that would have previously been spent unpacking and manually scanning all items into inventory. It also enables real-time visibility into inventory, which can have dramatic results. When UK clothing retailer River Island applied the technology to track their products, they improved inventory accuracy from 70% to 98%.

• Supply Chain Automation

This line item could have the most significant impact on the industry. The European Warehouse automation market is expected to reach USD 8.37 billion. Implementing RFID technology has been shown to improve shipping and picking accuracy by 80%. It also provides the foundation for communication between supply chain partners, end users, and consumers.

• Ticketing and Contactless Admittance

The largest growth in the adoption of RFID technology is expected to occur in contactless ticketing. Everything from paper tickets, cards, tokens, public transportation, music concerts and festivals can be imprinted with an RFID tag, allowing for contactless scanning. These solutions decrease the opportunity for fraud and the demand for labor to admit crowds to events. The 2018 FIFA World Cup in Russia was one of the first global events to use paper RFID tickets.

• Automated Checkout

RFID can fundamentally change the customer checkout experience in retail. With tags on every item, shoppers can place their bags on the checkout counter, and an RFID reader can scan every item in the bag, allowing most people to check out in about 30 seconds. Not only will these systems eliminate waiting in line to check out, but they will also dramatically reduce theft.

• Shipment Verification

Scanning pallets before shipment will ensure accuracy before staff loads them on trucks. Any discrepancies can be instantly verified and resolved before the wrong items are sent to the wrong destinations, increasing costs. Additionally, items on a pallet or in crates can be immediately logged in the receiver’s IT system, giving them unprecedented visibility into their supply chain.

Endless Possibilities

Whether through shipment verification, automated checkouts or inventory consumed on the factory floor, RFID can update systems in real-time as items are purchased, shipped, or consumed, giving businesses accurate and actionable data to make better decisions.

TSPs with a working knowledge of RFID and the industries you serve can help you increase sales to your current customers and, possibly, in markets you may not have entered previously. How will you use RFID to grow your business?