ATTENTION ALL RETAILERS: We know what you’re probably thinking…. What the heck is RFID anyway? If you’re new to retail, or haven’t heard of RFID, let’s start off by reminding you what RFID is all about. RFID stands for radio frequency identification (RFID) technology. This technology uses a method of identifying items through radio waves. The RFID device works much like a barcode and scanner, except it is far more efficient and cost-effective! The technology utilizes a reader and tag that work simultaneously allowing for optimal service at the quickest pace.

RFID technology isn’t a new concept either. It has been around for nearly seventy-six years and has experienced significant advances in the past decade, and most particularly in recent years. These advances include a lower cost of ownership, improved reader form factors, greater global standardization, and innovations in passive ultra-high frequency (UHF) tags, which are all furthering RFID interest and adoption.

While all of these advancements are great, the single-most convincing argument for implementation of RFID devices in retail stores, can be found in the proven return on investment (ROI) that item-level tagging provides throughout the entire supply chain process. If you haven’t had a chance to look at the many benefits of RFID technology recently, consider these five great reasons why you should implement RFID in all of your retail stores:

  • Increased Inventory Accuracy. Studies have shown RFID technology offers the best solution to track merchandise for stocking and marketing purposes.
  • Reduced Inventory Management Labor. Both apparel and footwear retailers utilizing RFID in their stores have reported inventory labor reductions of 75 to 92 percent. In tests prior to the introduction of RFID technology, only 200 items per hour were counted using a manual process. Following the introduction of RFID technology, 5,000 items per hour were counted.
  • Reduced Inventory Carrying Costs. With RFID technology, retailers have been able to sustain leaner inventory levels, while reducing associated carrying costs more than ever before.
  • Improved Sales. Item-level RFID has shown an increased sale of items per transaction because the technology is fast and is cost-effective.
  • Protection Against Theft. We all know that shoplifting occurs more regularly than we would like to admit in retail. It’s been estimated that shoplifting alone costed U.S. retailers $32 billion last year. By using RFID to support electronic article surveillance (EAS), retailers are notified in real time when items are being stolen.

Almost all of the benefits listed above apply directly to a retailer’s in-store operations, yet, in today’s fast-paced world, retailers understand now more than ever, that being able to distribute items and fulfill orders from inventory located in any part of the supply chain is more efficient, more cost-effective, and more likely to result in greater satisfaction and an enhanced customer experience. Furthermore, nearly all retailers agree that the key to accurate inventory management is technology, most notably RFID.

Throughout the entire the supply chain, RFID technology allows retailers to maximize their inventory control and maintain flexibility from initial manufacturer orders through direct-to-customer shipping. Today’s RFID devices help increase the level of productivity in every retail store, by operating as both a sales channel and a fulfillment center. Additionally, this device helps enhance customer satisfaction and ultimately, improve end-to-end supply chain ROI.

This system of technology works and we are confident that its level of usage will only continue to grow in the future! If you have any further questions regarding RFID placement in retail stores, please do not hesitate to visit us at: