How RFID Solution Adoption Improves Retail Operations October 20th, 2022
From the distribution center to the checkout, RFID technology gives retailers greater efficiency and inventory visibility.
Every retailer’s IT roadmap includes improving inventory management, whether it’s counting stock faster or gaining real-time visibility. Thanks to exciting advancements since RFID solutions first emerged nearly five decades ago, retailers now have sophisticated solutions to enhance their end-to-end retail supply chains, from the point of manufacture to the in-store experience. These innovations are driving RFID market growth. The global market, valued at USD 10.87 billion in 2020, is predicted to reach USD 14.42 billion by 2026, a 5.06 percent CAGR.
The Benefits of RFID Solutions
Replacing manual, paper-based or barcode scanning solutions for inventory management with RFID solutions boils down to three benefits: speed, accuracy, and agility.
Employees can use an RFID-enabled inventory management platform to reduce the time needed to execute a stock count and perform these checks more frequently due to the time savings with RFID scanning. RFID readers don’t require a line of sight and read hundreds of labels or tags per second, shaving time from data collection.
Accurate data via RFID solutions result in accurate insights into how much product retailers have on hand and what’s en route to stores. This information will prevent replenishing too early or missing out on sales by reordering only when shelves are stripped bare.
RFID-tagged products also provide the flexibility to reroute in-transit inventory from one store destination to another based on up-to-the-minute demand signals and maximize the potential to capture every possible sale.
RFID can also offer a competitive advantage over other retailers that haven’t yet invested in the technology. RFID solutions can prevent disappointing customers who check product availability on a retailer’s website before going to a physical store to purchase the item, only to discover the SKU is nowhere to be found. Instead, retailers can leverage this technology to sync inventory data between physical and digital storefronts. This visibility will ensure consumers find what they need and follow through with their purchase rather than walking out of a store empty-handed and through the doors of a competitor.
Build Customer Engagement
RFID solutions can also be the basis for innovative solutions that increase in-store customer touchpoints. Retailers can create new opportunities to promote, upsell or cross-sell products and combinations. A tech-equipped fitting room, for example, can scan the apparel items a customer brings in and suggest complementary products to complete the look. Additionally, digital signage that reads item tags can educate shoppers about products, specials and deals to influence shoppers at the point of decision. RFID can also serve as the bedrock of a self-checkout system that gives customers control over the final leg of their store journey while freeing staff to engage in higher-value tasks.
Retailers can also deploy RFID solutions at the traditional checkout counter to speed workflows and avoid lengthy queues of restless customers. Instead of scanning items’ barcodes individually, smart RFID scanners can quickly read a customer’s full basket while the preset scanning range ensures no other items are accidentally scanned and charged to the shopper.
Effective RFID Solutions Are Within Reach of Your Clients
Falling development and component costs have put RFID technology within reach of virtually all retail enterprises. RFID solution components, from RFID tags and readers to industry-specific software, are affordable and quickly unlock several financial and operational benefits that add up to quick ROI. They save time and labor costs and enhance retailers’ capability to stock in-demand items and engage customers in new ways.
Start the conversation with your clients about their data collection and inventory management processes and how investing in RFID solutions will go a long way toward a thriving, competitive business.