Keeping Count: What are the main drivers prompting retailers to implement RFID?

June 8, 2023
irfan ullah

Datascan’s VP of Technology Strategy, Herb Billings, converses with Tyler Kern about the benefits of using radio frequency identification (RFID).

There are four main uses for RFID: “It improves inventory record accuracy. It reduces manual labor time around inventory management tasks. You can implement it for anti-theft, and display compliance — making sure you have one of everything on the floor.”

With the barcode system, retailers are checking stock biannually at best, which is a problem. “If you’re doing barcodes once or twice a year, your average inventory record accuracy before you count is around 35%,” Billings explained.

Unmatched counts create chaos. RFID allows stores to count up to 40x faster than barcodes. “That means you can count once a week. If you’re counting once a week, you are going to be maintaining a 98% or higher inventory record accuracy,” Billings said.

This ensures replenishment of stock is efficient. Additionally, stores can sell up to the last item while maintaining confidence in records and reducing safety stock. Studies show a 4–8% increase in sales when more frequent counts are performed.

RFID use allows users to reduce manual labor time by using data to analyze which products make it to the dressing room, but never see the register.

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