How RFID Tags Can Help Retailers Improve Inventory Management
RFID tags can be attached to tools or service kits to track their location. This helps a facility manager quickly locate the tool or kit when another technician needs to use it.
Typically, RFID tags run on RF energy from the reader until they sense stimuli of interest and then generate their own power to communicate with an integrated chip. These specialized chips have four memory banks, including EPC, TID and User.
Improved Product Tracking
With RFID tags in place, inventory tracking becomes faster and more accurate throughout multiple supply chain processes. The technology provides real-time updates and streamlines processes, saving time and eliminating errors in inventory management. It also offers visibility to the entire supply chain, allowing businesses to optimize and improve their operations.
The technology automatically collects and delivers data to a system, allowing employees to track items in real-time without manual intervention. This real-time product visibility can save companies 20-30 percent in warehousing costs by decreasing out-of-stocks and increasing on-shelf availability. It can also help them find the optimal inventory level so that they aren’t carrying too much stock, which will cost them money in storage fees.
In addition, RFID tags can be used to track the temperature of certain products, such as perishables. This helps businesses ensure that their products remain at the correct temperatures. It can also detect when a shelf-stable product has passed its expiration date, which can be a costly mistake for some retailers.
Finally, RFID tags are a more secure option than barcode labels because of their ability to scan multiple items at once. This can speed up the checkout process and reduce customer waiting times. It can also help sales associates provide fast, accurate answers and recommendations to customers. This can also increase the overall customer experience and boost loyalty.
Increased Productivity
Many companies lose time and money due to manual processes like tracking inventory. With RFID, the system automates these Metal Card tasks and can save employees valuable hours in a day. This also eliminates errors and helps your company increase efficiency and improve productivity.
RFID systems can track from the tiniest component up to a finished product. This provides visibility throughout your supply chain and helps you meet customer demands. With better inventory accuracy, you can increase sales and provide a more consistent experience for customers.
Unlike barcodes, which need a direct line of sight to scan, RFID tags can be read from a distance. That means you can track items without a physical inventory count or taking up valuable space in your warehouse. It also lowers cycle count times and allows you to set up reorder alerts based on safety stock levels, so you never run out of product.
Using RFID in your facility can help prevent costly mistakes that result in lost or damaged items. For example, if one of your technicians takes a service kit on a job and forgets to bring it back, the tag can tell you who has it. This prevents the technician from having to go through the time-consuming process of restocking the entire kit. It also keeps records of when the kit was used so you can schedule future work orders appropriately.
Increased Security
As more retailers adopt click-and-collect services to cut down on checkout line traffic and improve omnichannel customer service, RFID tags can be an important part of the infrastructure. This technology is capable of identifying specific items based on unique attributes that can’t be discerned through other methods, like barcodes.
This allows customers to pick up their purchases when it’s convenient for them. In addition, it helps bridge the gap between online and in-store shopping experiences. The technology also helps to improve inventory accuracy and stock reliability, which leads to improved sales and customer satisfaction.
Retailers can use the data from an RFID tag to prevent theft. For example, if a product is stolen, the RFID tag can identify the exact time and location it was taken and record that information in an internal database. When paired with video surveillance, this can help law enforcement agencies prosecute shoplifters.
Moreover, the ability to track item locations can help reduce wasted supplies in the healthcare industry. This can save hospitals money and resources. Bendavid and Boeck (2011) found that implementing an RFID system in a hospital can improve staff satisfaction and efficiency. However, they also noted that some staff members have concerns regarding the additional workload and the need to learn computer skills. Educating staff about the value of the data RFID provides can help mitigate these concerns.
Increased Customer Satisfaction
The most common use case for RFID is inventory tracking, which improves efficiency in product movement and allows retailers to provide accurate availability information RFID Tag to consumers. But there are many other opportunities to leverage this technology to drive revenue, enhance store operations and create a superior customer experience.
The ability to automatically scan and upload data saves time by removing the need for manual form filling, replacing outdated spreadsheets and improving accuracy. It also prevents transcription errors, duplication and missing items. Using fixed readers at key points of operation, such as at the checkout or on a production line, can also eliminate the need for human intervention and remove the risk of erroneous data entry.
Retailers that adopt RFID can also gain valuable visibility into their stores to identify high-traffic end caps, pinch points and different associate and product paths throughout the day. Combined with analytics, this information can help retailers optimize their merchandising, improve store processes and better serve customers.
Retailers deploying RFID should keep in mind that this technology will not work flawlessly from day one, and will require an agile mindset and cross-functional teams to make it successful. But those that commit to iterating and pursuing multiple end-to-end use cases can unlock value across the entire enterprise. The result is cost savings, increased productivity and revenue, and a superior customer experience.
