Making More Retail Business From RFID

How making More Retail Business From RFID, which is the good article people is always discussing presently, may even in the future. RFID is all the rage in the retail industry, but it’s not just for the major players. Retailers of all sizes are increasingly excited by this revolutionary technology that promises to create value and develop efficiency across almost every segment of their business. Excitement does not always lead to adoption. However, due to the broad nature of RFID’s benefits, it can be hard to measure its impact on the bottom line.

RFID increases efficiency, visibility, and opens up the world of retail. When making the final decision to adopt a new system, companies need accurate return on investment (ROI) figures and clear key performance indicators (KPIs). Thankfully, this data is starting to emerge, making an unmistakable business case for RFID in retail.

Out-of-stock means out of business, but RFID enables regular, accurate stock-taking that ensure retailers know what is on their shelves and therefore when to reorder. Without RFID, average stock accuracy is just 63%, but high-profile retailers have demonstrated stock accuracies of 95-99%, simply by implementing RFID.

Without stock accuracy, many retailers feel the need to over-replenish stock in order to account for potential shortages. This means more stock, needing more space – space that doesn’t need to be paid for or space that can be reassigned to create value.

Some hesitate to associate RFID adoption directly with sales increases. The facts however, show that retailers experience increases of up to 20% after introducing the technology. Importantly, they also see these increases disappear when RFID is removed. A report shows a 10% sales increase in stores. When RFID was removed, sales in those stores dropped by the same percentage.