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RFID, or radio frequency identification, is a cost-effective technology that can transform retail operations. When paired with an omnichannel strategy, it provides new data sources and streamlined processes.

Its most significant benefit is an improvement in inventory accuracy. Combined with the automation of reordering at safety stock levels, it can eliminate the need for formal counts and save hours per day in cycle count time.

Increased Inventory Accuracy

Modern RFID solutions reset store economics and boost revenue by increasing inventory accuracy. This results in 1.0-3.5 per cent higher full-price sell-through from reduced stockouts and better management, plus reductions in shrinkage and theft that can raise profits by 1.5 per cent or more. For more RFID retail buy, check this out.

PacSun’s goal is to put the right products in front of the right customers at the right time, and that requires a lot of planning and forecasting to ensure that stores are always stocked with the latest styles. It is possible by combining RFID inventory tracking with analytics, which provides fast insight into trends that can drive merchandising and product investment decisions.

By implementing RFID at stores, PacSun can also provide an omnichannel experience for shoppers by enabling buying online and picking up in-store (BOPIS). For this, PacSun requires the ability to instantly locate merchandise on the warehouse floor so it can be picked up and checked out by a customer.

To enable this, the retailer uses an RFID-based solution from RFLocus that allows associates to find items on a retail floor using a smartphone app that scans tags in the garments. The P3 Finder app can also display the location of each item in an RFID reader, which makes it easier for stores to serve customers and serve as a backup if an employee leaves the store without scanning all the RFID tags.

With RFID, PacSun can improve inventory accuracy and reduce cycle count times. With the help of Manhattan Associates’ POS system, which works with RFID, the retailer can instantly check in entire shipments instead of having associates scan each package and manually enter them into the inventory system. It also helps with automating reorders when safety stock levels are reached.

Reduced Inventory Costs

With RFID’s granular inventory visibility, retailers can reliably achieve a single, item-level stock count across all stores and warehouses. With this level of visibility, retailers can apply predictive analytics to predict when a style or size may run out of stock. The data produced naturally inform decisions across the business, from influencing product investment to shop layout design.

One fashion retailer, for example, used the power of RFID to streamline its buy online, pickup in-store (BOPIS) service. Its e-commerce team can rely on the system to know where stock is at all times, making it possible for customers to pick up items quickly and avoid the frustration of things being out of stock when they visit the store.

RFID’s heightened inventory accuracy also makes it easy to improve in-store processes. For instance, retailers can automatically check entire shipments with RFID instead of manually verifying receipts. It reduces cycle counts and allows retailers to remove formal inventory counts once their RFID system is accurate. It also eliminates the need to set reorder points based on an average quantity sold, as retailers can accurately determine when to replenish products with confidence at safety stock levels.

Aside from helping to improve omnichannel services, a high-quality RFID solution can help reduce overall supply chain costs. For instance, RFID helps track factory shipments, improving logistics management. It can also assist with lowering shrinkage by enabling retailers to find missing or misplaced goods quickly and easily.

RFID can be deployed in a range of hardware setups depending on the needs of a retail business. For example, a fixed RFID system can be implemented on a shelf with sensors that alert the system when an item is taken or returned to a frame or if a product has not been read for a certain period. It enables retailers to reorder stock before it runs out, reducing the need for manual spot checks and saving valuable staff time.

Retail businesses should consider multiple end-to-end use cases to get the most out of their RFID investment. It will ensure that the technology provides value throughout the supply chain.