From inventory to check-out: four ways in which RFID technology is transforming the retail industry

RFID_Sito.png

The fact that we are facing a new retail era is no big news: the technologies that can improve commercial transactions and customers’ shopping experience are growing in number and functions. RFID is the technology that is proving to be the most successful, especially at stores, for it promises to offer an entirely automated, accurate, smoother than ever check-out process. Here are 4 advantages of RFID for the retail industry. 

Implemented inventory management

In the last two years, several studies have given evidence of the rapid ROI generated by RFID technology. What is the key to its success? This technology allows retailers to obtain a broader vision (up to 98%) of inventory and to minimize surplus inventory with a weekly count of the items in stock. The RFID system can accurately track goods from the moment when they leave the warehouse until they reach the customer. What is more, by monitoring inventory, retailers can make sure they always have products available for their customers, fostering customer loyalty. 

Improvement of check-out solutions

For many retailers, the check-out process is the same as that used thirty years ago. With the advent of new models of automated mini markets like Amazon Go, customers increasingly demand, wherever they are, the same speed and quality of service. That’s why retailers are now resorting to RFID technology to speed up the check-out process. How? It’s simple: the tags applied to products reduce to a minimum the possibility of human error.

Loss reduction 

The percentage of items in a store that is classified as a "loss" is about 2% of the total figure. It’s not much, is it? Not quite: when considered annually, this figure can have an important impact on a retailer’s business. The only solution is a comprehensive and accurate vision of inventory, resulting in the reduced accumulation of inventory, which often derives from excess incorrect information generated in different phases of the production process. In this case, RFID can monitor all stages of the production and distribution chain, identifying even the eventual disappearance of single items!

Access to information

RFID systems can immediately establish the life cycle of any product by reading its tag: this contains information that can prevent counterfeiting and illegal sale, which are extremely harmful to retailers' reputation and to the security of potential customers. In essence, enhanced customer experience - automated and 100% error-free - seems to be so far the key driver that can lead us toward a new retail era. 

This is the reality we perceive everywhere, but just how close are we, with what percentage of error?  What sectors can already effectively use this technology? Is it really the cure-all that everyone would have us believe? At 255hec, we have been using RFID technology since 2003 and have acquired so much experience that we can assure that it is an exciting yet also tricky technology, to be used in a very skilled way. If you think it is the right technology for you, please feel free to contact us. If, instead, you are already familiar with the word “omnichannel” and associate it with RFID technology, then follow us carefully, we will give you some new information very soon.