3 Cost-Saving Reasons For Retail Companies To Invest In RFID

3 Cost-Saving Reasons For Retail Companies To Invest In RFID

RFID Tag Supplier, UHF RFID Tag Supplier

In a busy and fast-paced industry like retail, accuracy in tracking business assets is important to avoid revenue loss or any other types of losses. For this reason, the adoption of technologies that are specially designed to increase efficiency and improve business operations is necessary for retail companies. One of such technologies is RFID.

The benefits of RFID in the business sector covers many areas within an operation. However, despite these advantages, the innovative technology of RFID still does not seem to be as widely adopted in retail. In fact, based on a metric known as RFIQ, which is capable of measuring a retail organisation’s IQ – one possible reason could be the low level of RFIQ that’s impacting the retail business in a negative way.

Hence, to help businesses increase their knowledge of RFID, read on as we expand on some of the major cost-saving reasons why RFID should be applied more within the retail industry.

1. RFID enhances overall merchandise management

The use of RFID can essentially enhance the overall merchandise management of retail companies. One of the most popular benefits of using RFID tags is that it can improve the accuracy as well as the speed of inventory tracking. This improved inventory accuracy is then considered the key to lower shrinkage and subsequently increase profit.

Especially in these stressful times caused by the coronavirus pandemic, accurate inventory control and merchandise management is considered essential. Merchandise on the shelves of retail stores should be accurate in order that every customer’s order can be fulfilled. Through the application of RFID, retail companies can ensure that every piece of merchandise is accounted for, especially in times when having leaner inventory is a necessity.

2. RFID minimises man-hours

The operations of retail businesses generally involve numerous processes, from inventory counting to supply chain tracing. These processes can demand enormous number of man-hours if carried out manually. When the number of man-hours is big, the expenses on labour can also be inflated.

By incorporating RFID solutions into their operations, retail companies can have the chance to reduce their man-hours to what is actually productive. As a result, they may also be able to save some labour costs. Furthermore, as RFID readers can read hundreds of individual items simultaneously, they make inventory counts as well as inbound and outbound checks incredibly faster, more reliable and accurate.

3. RFID prevents theft and other losses

By improving inventory accuracy, RFID has the ability to help retail companies limit lost sales owing to stockouts and reduce losses during merchandise movement. Moreover, RFID can also be used as an effective tool for mitigating retail shoplifting or theft since its RFID tool tracking system feature can enable retail managements to see exactly what items are removed from a store and through what exit point.

With the help of RFID readers, retail managements can be instantly alerted, and security cameras will be immediately activated every time when an unusual number of items is removed from a store shelf simultaneously or some high-valued items are taken to an off-floor location. By using RFID as a preventive tool, retail companies can avoid possible financial loss that may arise from theft or other security issues.


Adopting RFID solutions has plenty of advantages for retail companies. It can help retail businesses save a lot of money by enhancing their inventory accounting, reducing their need for man-hours, and preventing the occurrence of theft and other possible financial losses.

As the operations and processes of the retail industry become more complex and demanding, it is essential for retail companies to increase their RFIQ and boost their applications by using RFID technology. Not only will the use of RFID make their operations more efficient, but it can also help them maximise their profits.