In the early 2000s, American retail behemoth Walmart spent nearly half a billion dollars on RIFD protocols. It may be the earliest instance of RFID use in the retail business. For consumer-centric companies, this served as a wake-up call that led them to explore the possibilities afforded by retail asset monitoring technologies like RFID solutions for retail.
A reader reads the data on an RFID tag and then added to a database for later retrieval. An RFID asset tracking system operates in this manner. Adopting RFID technology gives conventional stores much to gain. It presents many opportunities. The most crucial advantage is probably that it enhances clients’ shopping experience.
RFID for Retail Inventory Management
Radio-frequency identification, or RFID, has been used to keep track of tangible “objects.” The first adequately implemented RFID tracking system dates back to the Second World War when it was employed to keep track of aeroplanes.
Despite this, RFID’s impact on the retail industry has just recently begun in the previous several decades.
A British retailer was an early adopter of radio frequency identification (RFID) technology in 2001. Still, the same system has been used today. Recent participation in a study that found that RFID monitoring devices can boost sales by as much as 5.5% piqued their interest. Results also showed a drop in stock on hand, lost or stolen inventory, and labour costs.
RFID tracking uses radio waves to read and transport information from tiny chips called RFID tags to a reader with an antenna. The RFID reader then sends the data to an asset-tracking system. It can be recorded, analysed, and taken there for further action. It’s important to remember that a reader could be anything from a handheld scanner made for the system to a mobile device used by an employee.
By automatically tracking inventory and supply levels, radio frequency identification (RFID) tags help reduce the chances of theft and loss. Radiofrequency identification (RFID) technology allows the tracking of both stationary and mobile assets in a retail scenario.
A grocery store, for instance, could want to equip their shopping carts and baskets with long-range RFID tags so that customers don’t misplace them and the store doesn’t waste money renewing them.
To get the most satisfactory results from an RFID tracking system, it’s essential to use the proper hardware. As an illustration:
- Can you tell me how far away you have to be before you can begin scanning for things?
- Do you need active, passive, or semi-passive RFID tags, and if so, why?
- Need durable, weatherproof tags?
- How low, high, or ultra-high frequency do you need your tags to operate?
Ultimately, your goods will determine which RFID system is best for your business. It also depends on the specific challenges you’re attempting to solve. Are you, for instance, in the market for a solution that might aid with stock control? Does your supply chain process require more transparency? Averted theft and losses may be more important to you.
Improving stock management and cutting down on out-of-stocks are two goals that can be accomplished together.
Retailers may benefit significantly from asset tracking systems. The increased visibility it provides them into the supply chain from the point of manufacture through to the point of distribution. This way, supervisors can tell if their goods are sitting on a pallet, in a container, or on their way to a retail outlet. Offering a clearer picture of stock locations and expected delivery times.
With RFID inventory management solutions, stores can scan hundreds of items all at once, making it a valuable tool for inventory management. Unlike a process that necessitates more human labour, like barcoding, which requires scanning each item.
This makes stock checks considerably more accessible and quicker. It guarantees that shelves are constantly replenished with new products as soon as the old ones are depleted. After all, keeping shelves stocked is integral to satisfying customers and delivering a positive shopping experience.
Improve Retail Customers’ Time Spent Shopping using RFID
One of the most intriguing potential outcomes of RFID deployment is how it might affect how people shop at brick-and-mortar stores.