Article | February 2, 2011

5 Advantages Of RFID In Retail

Continuing on with our five-part series in which we review the advantages of RFID within several industries, we examine the advantages RFID is prividing the retail industry:

Inventory Shrinkage (Shrink) Reduction

  • Track retail items between point of manufacture or purchase from supplier and point of sale.
  • Real-time notification of security when RFID tagged items leave area without payment
  • Competitive advantage – saving money on theft allows to offer product at lower prices

RFID Smart Labeling

  • Monitor unattended inventory
  • Automatic item identification on mixed pallets
  • "Smart Shelf" systems – designed to provide real time tracking and lovating of tagged items on shelves
  • Shipping and Receiving applications

Shelf Stocking

  • Real-time notification of out-of –stock items
  • Improvement of product replenishment
  • Retention of consumers who may turn to competitors if inventory item is out-of-stock
  • Automated charting and tracking for improved product forecasting

Check-out Process

  • Reduce time spent in line
  • Reduce labor/time cost of employees
  • Streamline check-out process with ability to scan multiple items and pay for them all at once

Overhead Reduction

  • Track product shipping and receiving from point-to-point automatically versus manual tracking to save time and labor cost
  • Know how many units of inventory or on-site via automated RFID system versus manual process, saving labor and time cost
  • Efficiency in error reduction reduces manual labor cost

SOURCE: Zebra Technologies Corporation