Retail Businesses That Succeed Have This in Common!

“RFID increases inventory accuracy, from an average of 65% to more than 95%. And high inventory accuracy can lead to increased sales—but only if retailers use the data to improve their operations and processes.” -Bill Hardgrave, dean of Auburn University’s Harbert College of Business and founder of the RFID Lab The verdict is out. Today, there are two kinds of businesses involving a supply chain – 1. ones that are using RFID technology and breaking new barriers and 2. ones that continue to use traditional methods and are on a gradual, steady decline. In which group does your business fall in? Hopefully, the first. Because RFID technology is fast becoming a clear differentiator between businesses that are winning and the ones that aren’t. How is RFID technology playing such a key role in improving businesses? Let’s find out…

What is RFID technology?

Radio Frequency Identification, or RFID systems comprise tags and a scanner that can ‘read’ them. Tags are installed on your inventory while the scanner, or reader can either be handheld (mobile) or fixed. Tags can be unique, helping you track each item separately. RFID readers can scan tags even when they are not in direct line of sight, thereby making RFID technology surprisingly quick. Did you know? By 2004, the American retail juggernaut Walmart had spent nearly $500 million on its RFID programs, after the invention of the first UHF reader in the 1990s.Benefits of RFID technology

RFID technology impacts every stage of the supply chain. From improved visibility in the warehouse to real-time information of your inventory, RFID ensures better control of the entire supply chain without you having to break a sweat. Here’s how RFID technology helps you achieve and outdo your business KPIs:

1. Massive timesaving

Imagine a few of your employees doing the rounds of your warehouse scanning each carton. How much would you say that takes? Now imagine those same employees assigned to other tasks because RFID technology has already done their job – in one-hundredth the time. Since RFID technology does not need the items to be in line of sight, cycle counts are carried out much faster and with far greater accuracy than any other method. What about the times when you must look for a certain item? Mobile RFID scanners start beeping as you move close to the item you want to search, making it extremely easy to locate specific parts of your inventory. Did you know? Club Car, a manufacturer of golf carts, used RFID tracking to reduce the assembly time of each vehicle from 88 minutes to 46 minutes.2. Improved Accuracy

You obviously are aware of the correlation between accuracy and sales. Roughly, a 3% improvement in inventory accuracy equates to about 1% increase in sales. RFID enables you to shoot up your accuracy to 98% and above. If you know your current accuracy, you can do the math and figure out the jump in sales you can expect. Most retailers operate at about 60-70% accuracy and can benefit a great deal using RFID. Did you know? UK clothes retailer, River Island, increased their stock accuracy from 70% to 98% by deploying RFID tags across all its stores.3. Tighter Supply Chain

RFID has the added advantage of quickly exposing any gap you might have in your supply chain, so you can work on fixing it right away. Right after implementing RFID, you will be able to see the chinks in your supply chain armour and repair them for a more robust and smooth supply chain. Traditional methods don’t allow you the clear visibility that RFID does.

4. Operational Efficiency

Since you can quickly spot and close the gaps in your supply chain, it automatically results in higher operational efficiency. In addition to that, the real-time data that RFID offers allows you to keep track of how much of a particular item is available or out of stock, enabling you to pre-empt stock refills and plan well in advance. This also means that your employees who deal with customers always have the correct information.

5. Customer Satisfaction

Both in-store and online customers benefit from the accuracy that you achieve through RFID. Not only will you be consistent in providing the correct information to your customers, but you will also be servicing them better at the store, thanks to the real-time information of your inventory that RFID empowers you with.

6. Improved Tracking & Traceability

With RFID, you can have unique tags for each item of your inventory, allowing you to track and trace every single item, no matter how vast the inventory. Handheld RFID scanners make it super easy to locate a particular item you are looking for, thereby granting you tracking superpowers – from your warehouse to your store. RFID enables you to have 100% visibility of your inventory and its movement like no other technology can.

7. Data

RFID technology allows you to capture valuable data that is lost in traditional methods. Accurate real-time updates on inventory levels and delays in the supply chain enable you to gather more knowledge about the components weakening your supply chain. Closing these gaps in supply chain and ensuring stock readiness wherever required help you save costs. Many businesses have been able to achieve an ROI of upto 200% using RFID! Did you know? The Canadian airline company, Air Canada, saves millions of dollars each year by tracking food carts used in airports around the world. Zebra, a leading manufacturer of RFID equipment, helps you achieve maximum RFID efficiency, while minimizing the pains of multi-vendor solutions. Unlike other players, Zebra gives you the industry’s broadest, field-proven RFID portfolio for unmatched accuracy and interoperability. Zebra is the only RFID specialist that allows you the flexibility to choose between cellular, Wi-Fi or Narrowband wireless connectivity, bringing you the most wireless options in each device. BCI, being premier partners of Zebra, have extensively used their products with tremendous success across industries. If you are interested in Zebra products, please feel free to write to us at webstore@barcodeindia.com or browse through and buy the products from our webstore. If you are interested in handheld RFID scanners by Zebra, you can click here. If it’s RFID printers you are looking for, click here.