Overstocking, supply chain errors, and deficits are common issues retailers face that affect customer satisfaction and profit margins. Regular sales and revenue generation garner immense importance in boosting profit in the contemporary retail business world.
Inventory management plays a vital role in the retail operation as it ensures cost reduction, prevents spoilage, and increases profit margins. It involves sourcing items and storing and selling them at the right cost. The complete process is undergone either manually or electronically. As retailers look forward to implementing faster techniques, what can be better than RFID solutions!
What is RFID?
Radio Frequency Identification (RFID) is an advanced technology controlled by regulating radio waves that functions by establishing effective communication between an item tag and an RFID tag reader. Today, the retail industry vouches for an RFID inventory tracking system as it tracks and traces the entire process of individual items, beginning from transportation to warehousing and product dispatch.
Inventory management is the key to running a retail business seamlessly. Although numerous types of inventory tracking systems are used universally, RFID is the most accurate and up-to-date system, offering complete visibility and detailed information.
Advantages of RFID Tracking System in Inventory Management
RFID retail tracking is an advanced tracking mechanism that helps retailers meet clients’ expectations to provide faster and more convenient services. Additionally, this technology automates the system, reducing human resources, and thus incredibly reducing costs and benefiting the retailers.
Following are a few advantages of implementing an RFID tracking system in inventory management that can help retailers grow their business;
- Reduced Labour Cost
RFID technology minimizes human resource engagement, thus reducing labour costs in the overall inventory management process. It automates the entire inventory process, including shipment, item tagging, inventory check-in, counting, dispatching, etc.
Implementing RFID technology helps perform all these processes in a micro-second, thus reducing operational labour costs by 50-80%. Besides this, an additional bonus came in the form of fewer human errors and saved capital which can be used to enhance business growth.
- Enhance Visibility and Quick Scanning
The RFID tracking system is way better than comprehensive methods like barcode scanning as it doesn’t involve line-of-sight scanning. The RFID tag is an advanced technology that processes inventory from a distance without being in sight.
This technology is accurate and allows the system to read information from any orientation. RFID tracking helps update product information and availability, thus helping retailers provide better services to their customers.
- Improves Stock Control
RFID technology provides an accurate level of inventory. It is quick and easy stock checks that help maintain stock consistency every time. Unlike traditional methods, the RFID solution scans hundreds of assets within a fraction of a second, thus providing better visibility of stock. It helps retailers update real-time stock data on their websites and significantly boost sales.
RFID inventory management and RFID tags impeccably transform retail business. The introduction of RFID in retail business has proven potential for opening doors for innovation and next-level business growth. RFID has shown tremendous potential in the retail industry, where maintaining stock accuracy is an ongoing challenge.
