The world could be a competitive place, especially within retail and e-commerce, where every object in your stock is counted. And yet how is your num    ber right? If you are still using manual tools, you may be missing sales and irritating customers. This guide responds to the main questions regarding how Radio Frequency Identification (RFID) technology solutions provide a real-time answer to near-perfection inventory accuracy.

Why is my traditional, manual inventory management system no longer effective?

Manual inventory management, as it involves physical counting of products based on the assistance of the staff and the utilization of barcodes, is incorrect in its core as far as modern retail is concerned. According to a study conducted by the RFID Lab at Auburn University, the actual accuracy of all the inventories of retailers that utilize such systems is merely around 65 percent. This inaccuracy causes others a great deal of trouble:

  • Numerous Stockouts: your system indicates that an item is available, yet it is not on the shelf. This then results in loss of sales and dissatisfied clients.
  • Expensive Overstocks: The incorrect information will lead you to make an overstock purchase of an item without using the available capital, thus wasting storage facilities.
  • Shrinkage out of control: Losses through theft, damages, or mismanagement are impossible to keep track of and result in a direct blow to your bottom line.
  • Inadequate Omnicommerce Execution: Omnicommerce solutions, such as Buy online Pick Up in-store (BOPIS), are faulted when online records do not reflect the actual quantity in stock, and this undermines customer confidence.

What is RFID, and how does it work for inventory tracking?

Radio Frequency Identification (RFID) is a wireless technology that identifies and tracks items using radio waves and automation. This is what it basically boils down to:

  • RFID Tags: On each product, a small tag that has a microchip, uniquely identifying it, is attached.
  • RFID Readers: These are devices (which may be handheld scanners or fixed portals) that transmit radio waves.
  • Data Transmission: In its passing through the field of the reader, a tag is energized by the radio waves and beams back to the reader its particular identification number.
  • Instant Data Capture: Reader reads hundreds of tags per second–and even if it is not in the same line of sight as the tag–and transmits the corresponding data to your inventory management software.

This not only lets you count your whole inventory much faster than would be possible by hand, but also is much more accurate.

How exactly does RFID improve inventory accuracy?

The essence of the problems of manual counting is addressed by RFID, head-on catapulting the inventory accuracy rates to 99%.

  • Automatic Excludes Unpredictability: The process eliminates the guesswork and miscounts, which is natural with a manual process since the counting is done robotically.
  • Real-Time Visibility: You knew what you had and where it was at every moment, whether in the stockroom or on the sales floor.
  • Rapid Cycle Counts: Inventory counts will be able to be done daily or even hourly as opposed to quarterly or annually. This enables you to pick up those anomalies nearly in real time.
  • Accurate Shrinkage Tracking: at the item-level, you will be able to determine where and when an item is lost, allowing you to narrow down sources of shrinkage.

What are the tangible business benefits of using RFID in retail and e-commerce?

The advantages far exceed simply having the right number. Based on the information gathered by the technological companies as Zebra and Avery Dennison, adoption of RFID will cause it to demonstrate concrete changes in the business:

  • Greater Sales: Retailers have experienced increased sales up to 20 percent as a result of significantly decreasing out-of-stocks. When the customers are able to locate what they desire, their purchases increase.
  • Increased Customer Satisfaction: Good customer satisfaction comes when they have a seamless shopping experience, fueled with the correct stock data in regards to services such as BOPIS and ship-from-store.
  • Increased Labor Productivity: RFID has the possibility to increase labor productivity of inventories by 96%. Your workers will no longer count but will sell and concentrate on serving their customers rather than on doing repetitive manual work.
  • Healthier Bottom line: Fewer operating costs associated with reduced shrinkage, optimum stock holding, and an efficient labor force.

I want to implement RFID. What steps should I take?

The move towards the use of RFID is strategic. Here is an abridged way to start:

Identify Your Aims: How do you want to solve certain problems? Do you aim to decrease stockouts, enhance omnichannel fulfillment, or trace your assets?

Start Small ( Pilot Program): Commence with tagging one category of product or even a single store. It will enable you to gauge the ROI and iron out any quirks prior to a full-scale rollout.

Select the Appropriate Technology: Pick the selection of the RFID tags, readers (handheld, fixed), and software that best suits your particular setting and business requirements.

Partner with an Expert: Liaise with an experienced RFID solutions provider such as Senitron. A professional will be able to assist you along the way, including the initial planning and system integration, training, and support, so that it will represent a successful implementation.

FAQs

1.      What is the main difference between RFID and barcodes?

The major distinction is the reading technology. Barcodes must be read rapidly one-at-a-time by using a direct, line-of-sight scan. Radio waves are used by RFID, enabling hundreds of tags to be read within a distance, even through some boxes or barriers. These make RFID tremendously quicker and proficient in types of inventory checks.

2.      Is implementing RFID technology expensive?

Despite this initial investment, the price of the RFID system has decreased significantly. There has been a reduction of about 80 percent in tag prices within the last ten years. What is more important is that the ROI is impressive. According to accounts of many retailers, payback is completed in less than a year due to the increase in sales, decreasing shrinkage, and savings in labor.

3.      What is RAIN RFID, and is it relevant for retail?

RAIN RFID is a specific, high-performance type of RFID operating in the UHF frequency band. It’s the global standard for item-level tracking in retail and is promoted by the RAIN Alliance. Its ability to read tags quickly and at a distance makes it the ideal choice for applications like inventory management, supply chain visibility, and loss prevention in the retail sector.