In today’s retail landscape, being able to streamline inventory management and provide checkout services is often the differentiating factor between successful and unsuccessful organizations. Radio Frequency Identifying (RFID) tags are disruptive technology that has transformed how retailers will be able to manage inventory and serve their customers. RFID tag provide not only real-time tracking of inventory but provide material operational advantages throughout the supply chain.
What are RFID tags?
RFID tags are small electronic devices that contain information about a product or individual item. Traditional barcodes must be scanned in line of sight using a physical scanner; RFID tags can be read. Inventory inaccuracy is a major problem in retail business, resulting in stockouts, overstocking, and lost sales. RFID technology can help retailers achieve almost perfect inventory accuracy, visibility and reliability. Handheld or fixed RFID readers provide almost real-time information on item locations and counts from just a scan of the entire shelf, or backroom.
This type of visibility enables the retailer to restock or stock quicker, make better merchandising decisions, increase supply chain responsiveness, make better demand forecasts, reduce out-of-stocks (and waste), and to avoid unnecessary markdowns-all of which tend to contribute to healthier profit margins.
Speeding Up the Checkout Process
RFID tags can greatly improve the customer experience at check-out as well. In traditional retail POS systems, every barcode must be scanned, which can be cumbersome, especially at peak hours. With RFID-enabled check-out systems, every item selected by a customer in their shopping basket is scanned simultaneously by a RFID reader scanner, greatly increasing checkout speed and process capacity.
Some even offer automated self-checkout stations where the scanner reads all items instantly via a RFID scanner, allowing the customer to end the transaction, pay and be able to leave quickly with little or no involvement from any retail person at the checkout station to achieve that! The automation not only helps the customer, but it frees up retail staff to help customers in other ways, such as the fitment area or assisting with additional merchandise requests.
Reducing Theft and Shrinkage
Retail theft and shrinkage are costly problems for businesses. RFID technology offers an additional layer of security. RFID card readers can be installed at store exits to trigger an alarm if any unpaid items pass through undeclared. RFID tag systems can also track products in high-risk areas, and loss prevention teams can assess movements and behaviors to identify areas of possible vulnerability.
Omnichannel Capabilities
As omnichannel could be defined as a shopper who shops both online and in the store, RFID tags support the promise of order fulfillment before, during and after a sale, both in store and online. Accurate and real-time inventory, coordinated with transactional data, ensures that when a shopper orders online for in store pick up, the product is available. Retailers can also take advantage of RFID-influenced inventory to support shipping strategy more effectively from stores or warehouses, response speed increases and trust in future delivery increases, which increases the customer's confidence in future purchases.
Sustainability and Efficiency
RFID also supports sustainability by avoiding waste. Accurate inventory indicates avoiding overproduction and overstock, eliminates markdowns and down streams associated with unsold inventory. RFID will also reduce the need for manual checks or paperwork, result in labor opportunity cost savings, adds time efficiency and operational efficiency.
Conclusion: Looking Ahead to the Future with Poxo
RFID tags are revolutionizing the retail sector—improving inventory, increasing customer service, and protecting inventory. Retailers who embrace RFID solutions can improve efficiency and accuracy, as well as increase customer satisfaction, giving them a competitive advantage.
Poxo RFID Automation has the modern-day RFID retail solutions that are fully customizable to address today's needs. From inventory management systems to automated checkout and loss prevention, Poxo can help your organization utilize RFID technology to the fullest.