The year 2019 witnessed a rise in retailers opting for solutions that help in reducing costs and optimizing inventory control. Customers nowadays expect to premium and customized services, which can be achieved through the introduction of RFID in-store. Advancements in the field of Radio-frequency identification (RFID) significantly improved the firm’s day to day operations. Retailers can place the tags on products and use the RFID scanners to process the data stored in the tag. This automatic process uses electronic tags to collect, manage and retrieve data. Furthermore, the information collected is seamlessly transferred and stored in the company’s database.
Benefits of RFID Technology
RFID assists retailers in real-time tracking of assets and improving in-store infrastructure through the insights collected from the technology. According to industry experts, it will help businesses improve inventory accuracy and data reliability by over 25 percent. In addition, retailers can now use advancements to simplify the process of accurately tracking assets further and gaining store insights.
The wireless RFID technology allows businesses to identify and collect data from tags through radio waves and track multiple objects effectively. Furthermore, these tags are robust and can be read outside the line of sight, thus making it convenient for retailers to track these tags. According to industry experts, these tags will help in avoiding duplication of data collected or missing any important information.
RFID will improve productivity within the business as it reduces the dependence of labour, thus avoiding human error. Moreover, it helps retailers gain more control over the stocks of the firm. According to a recent study, RFID will boost profit margins by over 50 percent and thus, it will continue to gain popularity in the future. As a result, the global Radio Frequency Identification (RFID) market will cross $38 billion by the year 2021.
Gaining Competitive Advantages
The data collected through the RFID technology is in real-time and thus, the information is more up to date. In fact, it has rapidly been replacing the barcode systems due to its efficient and quick optimization of inventory management. It is easy to install and can store a lot of data which can be easily accessed by the firm. The RFID technology is also very secure; thus, the data collected is safe and protected against online threats.
RFID also helps in employee management; it tracks their progress within the company and helps in optimally managing them. In addition, it also helps in the efficient scheduling of corporate resources to gain competitive advantages within the industry. Despite the initial cost of acquisition, the RFID technology will help retailers earn back the investment quicker; which will be achieved through reducing other expenses. Moreover, it will assist in increasing customer satisfaction by over 15 percent, thus leading to more sales for the company.
Retailers who fail to recognize and incorporate the benefits of RFID technology will struggle against the market competition due to inaccurate knowledge and insufficient interactivity. However, RFID users, on the other hand, will be able to gain real-time information and improve in-store infrastructure. As a result, businesses will be able to attract new as well as retain current customers successfully.
Written By: Ranjeewa Dias
Business Technology Manager