What Are The Benefits of RFID Technology For Your Retail Business?
KFP Blog - November 01, 2019
How Does RFID Technology Benefit Your Retail Business
1. Improved Stock Visibility
Due to the ease and accuracy of RFID stock counts, retailers using the technology can reliably achieve full item-level stock visibility across their retail stores and warehouses. With the speed in which RFID can track inventory and measure stock counts, this means you can reduce the labour intensiveness from staff carrying out manual stock takes.
Benefits of improved stock visibility
- Improved shipping accuracy and fewer stock returns
- Better omnichannel retailing
- Produces more data for better insights
- Reduces inventory size and purchasing resource (and therefore working capital) significantly
- Increased customer satisfaction with better stock replenishment
2. Improved Product Availability
Ensuring high product availability, especially during peak period is vital in keeping your retail sales up. Most retailers fall guilty of low stock availability across their stores, which in effect, becomes frustrating for customers trying to purchase items in-store. Lack of available stock and long queuing times are two of the most frustrating aspects for customers shopping in-store.
RFID provides a great real-time solution as part of your replenishment processes.
How does RFID increase product availability?
- Makes regular cycle counts possible with efficient RFID stock reads
- Removes stock inaccuracy (from 70-80% to 99%)
- Creates a complete item-level view of stock between both backroom and shop floor
- Item visibility makes replenishment easier and more accurate
- A real-time view allows for replenishment alerts for when items/sizes are running low
- Item-level data from RFID allows for an advanced real product review
3. Increasing Process Efficiency
The great thing about the adoption of RFID technology in retail is that regardless of handheld devices or fixed infrastructure, RFID has the ability to read hundreds of individual items at once, making tracking stock more seamless and efficient.
Processes transformed by RFID:
- Cycle counts/inventories
- Fast & Efficient Inbound & Outbound reads
- RFID-enabled picking and packing
- Mobile guided replenishment from warehouse to the shop floor
4. Real-Time Data & Analytics
RFID is great for real-time data and analytics for retail. Retailers can get a much better idea of stock on hand, traceability, and stock checking. RFID data is great for both the warehouse and the shop floor but also:
- KPI based performance tracking
- Detailed merchandise data & Analytics
- Operational excellence
- Actionable recommendations
- Compliance tracking
- Eliminates reliance on historical data
- Predictive capabilities for inventory counts and merchandise management
5. Transforming The Customer Experience
There are many great benefits of RFID technology in retail but more importantly, RFID can provide customers with a much better service in-store.
What ways does RFID improve customer experience?
- High product availability/visibility for customers'
- Employees on the shop floor Store will have more time for their customers
- A streamlined connection between online and offline
- Smart fitting rooms providing a hugely improved fitting room experience.
- RFID-enabled POS can be used for self-checkout services and giving the customer more ownership over their buying experience.
Want to find out more about how RFID technology can benefit your business? Get in touch with us today:
+44 (0) 1235 539101