RFID tags integrated into a warehouse management system (WMS) help speed up processes, reduce labour costs, prevent theft and product misplacement, and provide theft deterrence.
RFIDs allow businesses to scan an entire area rather than each item, speeding up checkout lines. Furthermore, this technology can also monitor equipment and detect when maintenance is needed.
Real-Time Inventory Visibility
Retail brands need real-time inventory visibility in order to compete in today's fast-paced, customer-driven business environment and deliver products on time, and RFID can give retailers this advantage by helping optimise operations, reduce costs, and strengthen supply chain resilience.
Case-study companies varied greatly in their abilities to assess various Intervention Mechanisms; all recognised the ability of RFID technology to reduce out of stock as being of extreme value; this was seen as being our key driver; other KPIs included reducing stock rotation times, time savings associated with staff restocking costs reduction, and improved data integrity.
Streamlined Inventory Audits
RFID tags differ from barcodes by being read at a distance without line-of-sight scanning, enabling businesses to complete inventory audits much more quickly and with reduced labour costs.
Reducing out-of-stocks in retail environments where stock availability is the primary driver of sales can have a dramatic effect on both revenue and customer satisfaction. Many of the case study companies reported that RFID had allowed genuine out-of-stock issues to be corrected more rapidly by either updating inventory records to reflect that an item had not been delivered or by quickly locating stock stored on pallets at warehouses that isn't found anywhere near stores.
Several companies had also measured the impact of RFID implementation on staff costs by measuring the reduction in time spent auditing physical stock and restocking, thus freeing staff up to engage customers directly on the shop floor.
Enhanced Security
RFID technology offers many benefits to enhance business operations, from simplifying inventory management to minimising shrinkage. POXO RFID tags have been specifically designed to meet a variety of applications across your supply chain.
Respondents reported several KPIs they achieved through RFID use, with an increase in sales/turnover being by far the most notable outcome. Nine of 10 participating companies specifically measured this metric and observed that even modest improvements produced satisfactory returns.
Reduced Labour Costs
Although each business involved in RFID differed in its business context, all recognised that investing in this technology would facilitate more agile operations and support 21st-century retail models to keep pace with consumer expectations.
At all of the case study companies, senior management support was key for initiating and completing projects successfully due to not inconsiderable upfront costs and significant modifications required in business operations.
Many of the companies also identified reduced staff costs as one of the main returns-on-investment benefits, due to time savings attributed to RFID's ability to drastically speed up stock counting and restocking processes.
Increased Customer Satisfaction
As was apparent among most case study companies implementing RFID, active senior management support was key for its successful execution. This was likely a consequence of the substantial upfront investments necessary to implement RFID within its business context and ensure there is strong cross-functional buy-in.
RFID interventions typically aim to decrease stock discounting, which is a costly and tedious issue for retail businesses. Being able to quickly spot misplaced stock, replenish or sell it at the right price can help retailers maximise margins through staff time savings and an accurate inventory system.