Consumers today are an evolved lot. While earlier a customer would have simply bought an item from a retail store on the basis of material quality and its affordability, the new-age consumer has another box that needs to be ticked before they decide to buy your product.
Today, they want to know the effect of your product (and your business) on the environment.
If the product you are selling is not sustainable, you can lose a sizable chunk of your customers in the near future.
According to the McKinsey apparel CPO survey, there has been a 500% increase in the number of sustainable fashion products launched over the past two years. That number is only going to increase in the coming years, with the consumers becoming more and more conscious of the environment.
This means your competitors are probably figuring out ways to make their business and products more sustainable.
Thankfully, using RFID technology has had a huge positive impact on the Retail industry when it comes to driving sustainability.
Sustainability is a societal goal with three dimensions (also called pillars): the environmental, economic, and social dimensions. This concept can be used to guide decisions at the global, national, and at individual consumer levels.
1. Minimize Overproduction with Accurate Information
RFID technology drastically improves your inventory management and accuracy. What this means is that at any given point in time, you have an exact idea of what your current stock is, which items you are about to run out of and how much of your inventory lies in your shop and your warehouse.
In traditional setups, once you start running low on an item, an order is placed for the production of the item. With the help of RFID, you can only order once you are certain that a certain stock needs to be replenished.
Since you will no longer have to store an item ‘just in case you run out of it, there will be fewer unnecessary orders, which will lower carbon emissions, water use, and water pollution. A reduction in overproduction will also result in a decrease in transportation, which will further reduce your company’s carbon footprint. Reducing overproduction will enable you to achieve many of your sustainability goals as each item produced and passed through the supply chain increases its environmental impact.
2. Avoid Overstocking, Optimize Storage Space with Item-level RFID
RFID technology gives you real-time information at all times, which helps you optimize supply based on actual demand and need. This has a direct impact on how the retail industry manages its stock. With RFID technology, you only need to restock when you are sure you are running out of certain items.
Since your inventory management is now optimized, you don’t have to guess how much of an item you need in your store, which usually leads to overstocking.
If you have accurate information about how much stock is needed and where, you wouldn’t need to keep inventory ‘just in case you need them in your store, as you will know exactly when you would need more of an item.
So, RFID can completely remove the need to overstock. Since you have a better understanding of your inventory/product demand, you can also optimize storage space with item-level RFID.
3. Recycle and Reduce Transportation
Each year, tons of items from the retail industry go to waste. The waste usually ends up in landfills, where they are burnt, which has a serious impact on the environment. Not just that, truckloads of the waste materials are transported from the source to landfills and dumping grounds, further increasing the adverse impact on the environment. One of the biggest reasons for wastage in the retail industry is overproduction. Once an item is more in number than its demand is, it is, in most cases, en route to the landfill. With the increased accuracy of RFID technology, wastage is minimized drastically. So, the extra items can simply be recycled and reused, something we firmly believe in at Barcode India Limited. If you are interested, you can check out our e-Waste Policy here.
If you are looking to adopt RFID technology or want to know more about how it can make your business more sustainable, please feel free to get in touch with us.
At BCI, we have been offering business automation solutions to the global RFID market. Using a combination of hardware and software solutions, we have helped organizations across diverse industry verticals including Retail, Automotive, Pharma, FMCG, Consumer durable, and Oil & Gas in automating their manufacturing operations.
Our solution consulting approach includes a thorough understanding of the existing processes, the areas that need intervention, and other challenge areas, followed by the design and deployment of a technology-based road map that is optimal for your business.
Come, let us help you achieve your sustainability goals!