Tracking inventory is one of the main uses for RFID implementation in stores, not only as loss prevention but also to gain accurate product location information which reduces costs and increases efficiency.
Retail managers have long struggled to accurately track floor inventory on an ongoing basis. Utilising RFID retail, retailers can instantly be alerted when products sell out or need replenishing from warehouses or storerooms.
Real-time Inventory Management
As retail industry moves towards omni-channel fulfilment, accurate inventory tracking becomes more essential. Unfortunately, manual counting or multiple apps has historically been required and serves as an obstacle in providing seamless customer experiences.
RFID allows businesses to automate inventory tracking and update, saving time-consuming manual counts or barcode scanning as well as labour costs. TagMatiks Wedge uses strategic reading points for cost efficient data collection that generates a simple flat file that can easily integrate into ERP or WMS solutions of choice.
RFID provides warehouse and DC operators with accurate inventory location data that helps optimise picking, replenishment and reordering processes, thereby reducing out-of-stocks and overstocks while quickly responding to sales trends. If a best seller runs out in store, the restocking team can be alerted so that stock can quickly move from storage back into shelves ready for an upcoming sale event.
Enhanced Customer Experience
RFID provides retailers with the means to track inventory quickly and accurately while also creating novel customer experiences, such as purchase online/pickup in store – something which helps increase retail sales while building customer loyalty.
RFID tags equipped with an effective data programming plan can scan items at a distance and instantly update retail inventory both offline and online, eliminating the need for staff to manually scan barcodes at checkout and freeing them up to focus on providing exceptional customer service and helping customers.
Retailers can utilise RFID retail tags to analyse in-store traffic patterns. For example, retailers can identify high-traffic end caps, physical pinch points and product paths at different times throughout the day and week – which allows them to monetise high traffic areas and optimise retail experiences.
Improved Security
RFID provides retailers with an effective solution for various retail uses cases that can significantly enhance store operations, associate productivity, and customer experience. RFID offers three practical benefits that should not be discounted:
Reduce theft (employee fraud is responsible for 43% of shrinkage). RFID tags can help track assets to specific locations, alert staff of unusual absences, and save time and effort by streamlining inventory management processes.
Improved cycle counts. Due to RFID antennas’ long range, cycle counts with RFID antennas are faster and more accurate than manual spot checks.
Recent advancements of RFID have given rise to new operational use cases for its usage, such as speeding up self-checkout by scanning items at self-checkout to speed up the process and allow customers to checkout without engaging with checkout staff. Companies such as Uniqlo and Decathlon are using RFID-based solutions like these in store; additionally, instant product or asset location is particularly helpful for retailers with limited shelf space.
Increased Efficiency
Retail environments where customers increasingly expect seamless omnichannel experiences are forcing stores into secondary fulfilment centres, becoming key points for offering buy online, pick up in store (BOPIS). They must do this while guaranteeing high stock availability and short queues for pickup.
RFID provides accurate inventory data to retailers, helping reduce cycle count times and enhance merchandising through accurately tracking stock movement in stores and warehouses.
Retailers using RFID retail solutions are also able to avoid costly margin erosion by minimising overstocking and product loss through shrinkage. With instantaneous shipment tracking and item-level inventory visibility, real-time replenishment of popular products and reduced blind receipting is now possible, leading them back towards customer service excellence while driving top-line growth.