RFID Technology In Retail: 5 Meaningful & Effective Uses
RFID is an impeccable example of technologies that retailers adopt in a bid to boost their business flow. Improving operations and the flow of business is a crucial part of the retail sector in order to maximise sales and stock turnover.
Though RFID inventory management is certainly one of the clear reasons why retail businesses are using this technology – more accurate inventory counts aren’t the only advantage. Some other benefits include faster and easy checkout processes, smart fitting rooms, and the tracking of sales. Most importantly it assist in customer satisfaction.
Altogether, these uses are able to enhance the shopping experience as well as allow a business to stand out from the competition. Now, let’s go through the different examples of how RFID influences the retail industry.
Basic store operations
When you have products with different variations – such as apparel – it isn’t very easy to track their numbers inside the warehouse or a big distribution centre.
A product may run out without your knowledge as you’re adding one variant, which is already present in large quantities. Here’s where an RFID handheld reader and fixed reader can help to make the operation easier for you and your staff.
The former is able to give store inventory data to elevate customer service by performing quick and easy cycle counting on the sales floor or retail front. Whereas the latter is able to perform automated inventory monitoring. This way, in case anything runs out, you will have a way of identifying, knowing and replacing or restocking. The same applies to a product which constantly requires restocking or reordering due to its high demand.
Checkout process
This is usually one of the most delicate procedures inside a warehouse; you can quickly lose or misplace products if you are not careful.
However, thanks to RFID technology, you have the chance to improve the checkout process. This technology can speed up the conventional checkout process that took a lot of time to complete. RFID helps in transporting the right products out of the facility without missing one or getting one out illegally.
For example, goods and products will pass on a conveyor using scanners instead of individual bar code scans.
On the flip side, an effortless checkout experience can be created for customers by simply tagging products with an RFID tag in a cart bag. The use of point of sale readers will even make the checkout process a lot faster and accurate.
Security
This is another effective use of RFID technology in the retail industry – mainly for protection against theft and access control.
Theft is common in the retail shop, where product flow is routine. However, with RFID tracking on each product – the sales team can tell if any stocks have left the premises without authorisation or payment; the alarm will be set off when items exit the premises. Similarly, the RFID anti-theft gantry is able to assist in preventing unauthorised product movements at store entrance or exit by tracking products movement.
Likewise, RFID can assist in access control. Various RFID technology, like wristbands, fobs, and smart cards, can be utilised as electronic keys. Some staff may only have access to certain areas, so RFID technology allows you to take control of authorised personnel who can enter an area, and those who may not. These RFID devices will also come in handy when there’s an emergency as they can immediately locate the staff and deploy them to the designated area.
Data improvements
The storage and use of data in the retail sector have improved since the inception of RFID technology.
The general inventory procedure is extremely manual, highly prone to mistakes, conducted at prearranged intervals which possibly requires retail shop closure, and is extremely time-consuming. Moreover, there’s a high chance of human errors and data breaches occurring.
RFID technology helps to increase inventory accuracy up to 98%. An RFID reader can easily conduct ad-hoc or regular RFID-based inventory counts which would not require formal based inventory counts. Even auto reorders can be enabled as RFID technology can detect when a certain type of goods requires replenishment; just set up the minimum quantity number to indicate when it’s time for a restock or reorder.
In summary, RFID technology benefits businesses from various industries, and in this case – for the retail sector. If you happen to be in the same industry – see how RFID devices can boost business operations, increase customer satisfaction levels and productivity.
