Finding Value In Item Level RFID

By Avery Dennison Printer Systems Division

Retailers face a myriad of challenges. Three of the most important to bottom line results are: Out of Stocks/Excess Stock, Inventory Shrinkage and Customer Perception/Customer Service.

Early RFID pilots have shown that RFID can have a dramatic impact on all of these issues. ROI is available at the item level as a real value proposition to many retailers today.

According to a study by AMR Research, products are out of stock 7-20% of the time. And the Grocery Manufacturers Association reports that approximately 75% of the time, the "out of stock" item is actually sitting in the back room inventory and just can't be located.

RFID at the item level provides accurate, real-time visibility to on-hand quantities – no matter where the product is located in the store. As a result, buyers have the ability to replenish what they need when they need it. Stockouts and overstocking situations are avoided.