The Benefits of RFID in retail
The global pandemic changed a lot about how retailers work and function, with an obvious shift moving to online shopping. Today, retailers are under constant pressure to remain competitive, and efficiency is a key factor in doing so.
Retailers need to move inventory faster than ever before and make sure they have the right products in stock at all times. This is where RFID retail solutions come into play.
At TEC-RFID, we specialise in improving a business’ production line and efficiency to keep up with the continual demand and the evolving market. RFID is literally in our name and efficiency is something that we excel at – statistics show that RFID technology can improve your inventory accuracy up to 98%. But when it comes to solutions in retail, RFID offers much more than this.
What is an RFID retail inventory management system?
An RFID retail management is an inventory system that is a set of technologies used to identify, track, and manage inventory in a retail environment. There are three main components to an RFID inventory management system that aids the retail sector:
- RFID tags that are affixed to the stock
- Readers and antennae that are used to scan the stock
- The software used to encode the tags and provide accurate data
Retailers can use RFID tags to track items throughout the entire supply chain from the time they are received in the store backroom to when they are sold on the sales floor.
How does it work?
RFID retail solutions use radio frequency identification (RFID) tags to track inventory levels and locations. RFID tags are tiny computer chips with antennas that store data, which can be read by an RFID reader. When an RFID tag is attached to an item, the reader can track the item’s movements throughout the supply chain.
Benefits of using RFID retail solutions
There are many benefits of using an RFID retail inventory management system that include:
Reduced shrinkage
One of the biggest benefits that an RFID retail solution offers is the reduction in shrinkage. Shrinkage is the loss of inventory due to theft, damage, or errors. By tracking inventory with RFID tags, retailers can quickly identify when shrinkage occurs and take steps to prevent it in the future, helping to combat other rampant issues such as counterfeiting too.
Improved inventory management
RFID retail solutions make it easy to track inventory levels and locations. This information can be used to improve stock levels, with retailers being able to quickly identify when products are running low and need to be reordered. RFID is a unique retail inventory management system that ensures the right products are always in stock.
Increased sales
By using an RFID solution, retailers can improve their customer service and further increase sales. It also helps to generate faster checkouts too, by speeding up the process. Cashiers can quickly identify the products that need to be rung up. This can save time and increase customer satisfaction, leading to customers leaving your shop – whether in person or online – with a purchase.
Reduced costs
An RFID retail inventory management system can also help lower long-term costs by reducing the need for manual inventory checks that come with a barcode system, all while improving product flow throughout the supply chain.
RFID vs barcodes
Retailers have traditionally used barcodes to track inventory. However, barcodes have several limitations that make them less effective than RFID tags.
Barcodes can only be read one at a time, which means that it takes longer to scan large quantities of products. Whereas RFID presents a helpful solution for retailers, with the ability to scan multiple tags at once, quickly and efficiently.
Barcodes can also be difficult to read if they are damaged or dirty. This can lead to errors in the inventory count and cause products to be out of stock. RFID tags do not have these problems because they can be read at speed and with ease, even from a distance, making RFID the optimal solution for the retail sector, and providing a more efficient system.
RFID Experts
RFID retail solutions can help reduce shrinkage, improve inventory management, increase sales, and even reduce overall costs. Being used to track inventory levels and locations, an RFID system offers many benefits to retailers across the globe.
At TEC-RFID, we provide a detailed installation process as well as various workshops and services to help you fully understand the potential that an RFID retail inventory management system brings to your supply chain. Our experts can help to inform you of the best methods to ensure process improvement and ROI when using an RFID system.
Get in touch with our team and we can assess your needs and recommend a data capture solution to suit your business.