What is RFID? RFID stands for Radio Frequency Identification. The technology uses radio waves to read the information stored electronically on the tags of various objects by a handheld or fixed reader.
Use Of RFID In Retail
RFID can be used instead of a barcode system because it is better suited to do inventory. The accuracy and efficiency of RFID are far greater and thus, it has several applications in retail. According to research, 69% of retailers cite significant adoption of PFID in early 2022 and the number is only going up, which explains RFID technology's importance in retail.
Visibility Of Inventory
The accuracy of RFID makes it possible for retailers to have their inventory visible all over their supply chains. The efficiency of RFID also makes the process possible with the least labor intensity. A complete view of inventory across your channels makes it possible for the retailers to give their customers the best experience. The improved item-level visibility helps in achieving shipping accuracy, a solid foundation for omnichannel retailing, better insights through advanced data, reduces inventory size, and enhances the customer experience by showing fewer “out-of-stock” notifications.
Increased Product Availability
Out-of-stock products and low availability are very common problems in retail due to insufficient restocking and inaccurate stock calculations which causes the loss of important sales. RFID increases stock accuracy to 90 percent as compared to the usual 60-75 percent. An efficient replenishment process is also a characteristic of RFID. RFID increased product availability through regular counts, removal of inaccuracy, creation of item level view of backroom and sales floor products, replenishment alerts, and planograms for stores.
Traceable Supply Chain
RFID makes it possible to account for each item at individual steps of the supply chain instead of just shipment boxed count. The shipment errors are traced by RFID and thus can be corrected by the warehouse staff in time. The location of boxes is also traced through RFID, making it possible to follow the path of the supply chain efficiently. The times and dates when each item passed a step of the supply chain are recorded and can be useful. RFID ensured a hundred percent shipment accuracy and a smooth operational process.
Improved Efficiency
RFID readers, whether handheld or fixed, can read hundreds of items at a time taking their efficiency to a whole new level. Importantly, each item has a different ID; so, it can only be read once and prevents inaccuracy. The reliability and efficacy of RFID in inventory counting are supported by the fact that the time required for the process is seen to be reduced by a staggering 95% by using RFID.
Refined Customer Experience
The operational benefits of RFID in retail are unmatched. But, the fact that makes RFID more suitable and convenient is its effect on customer experience. The high product availability, reduced burden on store associates, omnichannel provision, and an online connected experience makes the customer service refined and improved. RFID can also be used to create AI chat boxes and smart fitting rooms and self-checkout services to make things smoother and easier for the customer because ultimately, customer satisfaction is the stepping stone in retail.
