Benefits of RFID at the Store and in the Supply Chain
RFID is delivering clear value at the retail level today by improving inventory accuracy and reducing stockouts, leading to improved sales and a better customer shopping experience.
In addition, a clear picture of available inventory at all locations is key in supporting retailers in their omnichannel retail strategies.
Less inventory is needed in each channel to ensure that customer orders will be fulfilled.
The benefits of RFID at retail are being realized by many of the largest retail chains.
Tag prices have dropped to where the benefits clearly outweigh the costs, and a return on investment can be achieved in fewer than nine months.
Macy’s, for example, predicts a sustained inventory accuracy of 95-97% through use of RFID in its Macy’s and Bloomingdale’s stores.
Improved inventory accuracy enables more accurate replenishment to reduce out of stocks and drive significant improvements in revenues and margins, for both retailers and their suppliers.
Looking Ahead - An RFID-Enabled Supply Chain
RFID technology provides superior inventory tracking capabilities that can be used to improve process efficiencies and inventory visibility throughout the supply chain.
Beyond retail, RFID has the potential for streamlining processes and improving communication among all parties in the extended supply chain.
As the volume of RFID-tagged items in the supply chain increases, the technology can be leveraged to reduce costs and increase profitability for retailers and brands alike.