Gone are the days when physical stores were the only place where we could buy items. The advancement in the technological era has led stores to shift their business online. The traditional single-channel model has now been replaced with omnichannel retailing.
Radio Frequency Identification, otherwise known as RFID, transmits data using two components – tags and antennas. In this article, we will explain to you particularly how RFID can contribute to your omnichannel business.
What is omnichannel retailing?
Omnichannel retailing typically integrates different channels such as social media and their websites to influence the potential customer to make the purchase. Omnichannel is not only limited to online business. These strategies are followed in physical stores as well.
73% of customers generally use multiple channels to buy their products. They will decide to buy a product from a retailer only when they have gathered enough information from various sources to support their purchase decision.
The root focus of the omnichannel operation is primarily on the customer experience. Omnichannel does not explicitly focus on one aspect of customer experiences, such as in-store experience or online experience. It focuses on holistic experience.
What is RFID Omnichannel
RFID uses the emitted waves of radiofrequency to transfer the data. The users can further use this transferred data to keep an automatic track of their assets and inventory.
RFID has become an essential factor in the Omnichannel supply chain. Researches have shown that retailers adopting RFID strategies are also more likely to have omnichannel retailing. The RFID adopters buy products online, pickup in-store, and ship from the store with the help of the most common Omnichannel methods.
Benfits of RFID Omnichannel in the supply chain
Are you still unaware of the benefits of RFID Omnichannel in the supply chain? If yes, then I must say that your business is lagging. The role of RFID is highly crucial in the contemporary world.
Following are some of the significant benefits of RFID in the supply chain:
- Across the entire supply chain, RFID provides item-level visibility.
- Tracing items against individual shipments becomes relatively more straightforward.
- The operational processes remain smooth overall, as the manual labour hours are reduced, and documentation errors are eliminated.
- You can do shipment tracking for delivery within a fraction of a second. Shipping accuracy is 100 per cent inbound and outbound.
How can RFID boost Omnichannel Retailing – Insights
Retailers have inventory accuracy close to 75 per cent without RFID. But RFID can increase the accuracy to over 95 per cent. Moreover, the retailers who focus on physical stores are dependent on sale and shipment data to balance the inventory levels. With RFID providing accurate inventory data, the chances of any item getting misplaced are prevented and save them from losses. RFID gives the user real-time information about the inventory.
With an accurate inventory, it is possible to execute an order at any moment. As a result, it helps in avoiding stockouts and eliminating split shipments. Retailers use RFID for efficient and quick cycle counts and stocktakes. As RFID becomes more familiar to the industries, we can hope that omnichannel will too.
Some retailers implement RFID just for inventory tracking. Therefore, these retailers are less likely to use this technology to its full potential. To recognise its full potential, you must use it across a wide variety of business categories. By tagging and tracking their products with RFID, brands are combating counterfeit goods.
In recent years, the technology making RFID has become relatively cheaper. Thereby allowing the maximum number of companies, including small-sized businesses, to take advantage of the technology.
How RFID boosts customer experiences
Below are some of the reasons why customers rely upon the use of RFID in the supply chain:
- Store associates and staff can invest more time in marketing and assisting the customers.
- Omnichannel services have become more convenient as they are easy to use and time-efficient.
- You can easily balance and maintain the record sheets and data between the online and offline selling process.
- Smart fitting rooms are providing a vastly improved fitting room experience.
The Present and Future of RFID
The pandemic all of a sudden brings up the need for e-commerce. So, the companies must improve their visibility in the supply chain to keep their back in this highly competitive world. Consequently, implementing RFID in business is becoming mandatory as companies need a permanent solution to ensure product visibility.
Besides, some analysts have predicted the aggressive growth in RFID technology that will take place in sectors like food safety, healthcare, etc. With the onset of the technological era, many industries and companies have decided to be early investors in this technology.
RFID is not at all limited merely to track the assets and save time. The future of RFID does look extremely promising. With the recent rise in Omnichannel retailing, RFID is seeking more demand.
In the past years, RFID technology was limited to specific environments, whereas it is just the opposite in the contemporary world. In the preliminary years, tags could not be used in harsh environments such as chemical contaminants or extreme temperatures. Whereas the current technology easily adapts to the harsh environment.
RFID Results and data insights
RFID Omnichannel produces a far more detailed insight into the collected data. Therefore, analytics and quality data can allow retailers to make sure merchandise is in the right place for selling.
The results and data insights made possible with RFID are as follows:
- It is possible to track KPI (Key Performance Indicators) based performance
- Analytics and detailed merchandise data
- It allows operational excellence
- Implementation of RFID allows actionable recommendations
- Compliance tracking
- Eliminates reliance on various historical data
- Predictive capabilities for inventory count are possible, and merchandise management has become easier
Future RFID Inventions
We can, of course, expect numerous versatile products made possible by the implementation of RFID. Overall, we can say this industry is going to enter an exciting period.
RFID is all set to become more reliable due to the wide range of its application and be more cost-effective with the help of up and coming technologies. The future of RFID is settled. So, both the manufacturers and the end-users should be prepared for the upcoming developments. The most awaited future innovations of RFID are:
- Innovative manufacturers will create versatile and durable tags.
- New antenna designs could increase the range.
- Smart tags will come with increased memory.
- Sensor integration to streamline your business.
- Secure your data with new capabilities.
Technowave RFID Solutions
RFID retailing is successful in proving its worth in the field of the supply chain. Now questions may arise as to why choose Technowave when there are many other options?
At Technowave, various types of equipment are designed with colossal accessibility to meet customers’ needs, such as easyTRACK inventory tracking, easyTRACK warehouse management, easyTRACK asset tracking, easyTRACK jewellery tracking, easyTRACK apparel tracking and many more.
At Technowave, you’ll find the best tracking solution equipment put together by trusted and reliable brands. Technowave is the solution to most of your tracking and surveillance problems. And combined with the service and assistance, it’s the best deal that a business needs to hold on to.