New research provides an eye-opening look at just how error-prone current inventory management systems are when compared to those that leverage RFID.
For several years, retailers such as Macy’s and Target have realized major benefits from item-level Radio Frequency Identification (RFID) and have leveraged the technology to bring their omnichannel strategies to life. Item-level RFID makes retailers more agile in their ability to fulfill the needs of an omnichannel consumer — by providing unprecedented SKU-level inventory accuracy in real time. Using RFID, a retailer can boost sales margins, improve loss detection, and expedite returns — just to name a few of the technology’s benefits.
While RFID’s many benefits have been touted by industry, some retailers continue to delay deploying the technology, often because of misconceptions about its return on investment or a lack of internal expertise on how it can drive supply chain efficiency. New research from the Auburn University RFID Lab and GS1 US helps to prove the value of RFID and provides an eye-opening look at just how error-prone current inventory management systems are when compared to those that leverage RFID.
The study was especially timely as retail is in a state of unprecedented change. New store concepts are rapidly emerging, such as cashierless stores or highly customized experiences, and they all rely on having extremely high on-shelf availability. As consumers become more accustomed to shopping this way, it’s important for the retail industry to work together to evolve the supply chain and take advantage of inventory optimization opportunities through RFID technology.