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Reconsider RFID in Retail – A Gartner case study

RFID technology is taking the retail business to new heights. It uses electromagnetic fields to trace labelled products. RFID tags store information about a specific object, and readers capture this information using radio signals.

RFID technology has come a long way since its inception decades ago. Its potential in digital commerce is appealing. To determine how RFID might improve performance and foster competition in the collective industrial marketplace, an RFID case study in a retail setting is important.

The basic idea of “retail”

  • Retail is the process of trading products or services through numerous supply chains.
  • A retailer is a company that fulfils modest orders for a large number of customers. Retailers satisfy the expectations of the supply chain.
  • The retail formula is a deciding factor in in-store selection. Thereby, it also addresses consumer expectations. Hence retailing is of utmost significance.
  • Retail management is the process of increasing sales and customer satisfaction and gaining a better understanding of the customer.
  • Retailers are an important component of a supply chain because they connect manufacturers and consumers. This pertains to product and service delivery.
  • Manufacturers create and sell products to retailers or wholesalers.
  • Wholesalers buy products in large quantities and stock them.

The target of RFID in retail: A case study

  • Review the operational path to identify tasks that take a long time for store associates or consumers.
  • Cross-reference this performance review with your digital work plan to understand if there are any changes to wield RFID to decrease inefficiencies in activities or to consolidate with other technologies already on the work plan.
  • Join hands with the head of multichannel and store operations to decide on effective practices to ensure the satisfaction of both customers and staff.
  • Plan a trial to examine if RFID can improve in-store operations and customer service.

Why should we consider RFID in retail?

According to Gartner’s case study on RFID in retail, each of the tasks can be completed twice as fast with RFID technology. RFID is valuable for a variety of in-store experiences as well as better corporate decision-making. Thus, reconsidering RFID systems in retail is a very progressive step.

RFID technology improves product visibility and in-store operations throughout the supply chain. Reading RFID tag information is very easy and hence does not require experienced labour. It also helps to update inventory records at the exact time. The advantages of RFID expands to retailers. The exploratory study looked into a variety of facets of retail operations, including supply chain management and showed how inventory inaccuracy has changed over time. We can mask any out-of-stock conditions if we implement an RFID system throughout the supply chain.

RFID implementation in retail has shown to have a positive impact on all brick-and-mortar stores. Thereby, the evidence shows an increase in stock control and cost savings. It also opens a wide spectrum of opportunities for other novel applications.

RFID provides more information and thus increases the stability of the supply chain. It cuts down on the risk of damage and the high inventory expenses that come with uncertainty. Over time, the cost of deployment has lowered, and shops have figured out how to fully utilise this technology.

Consequently, the retailers understood that they didn’t have to fully implement this technology. Therefore, in most cases, they use only tags and handheld readers to increase durability. This, on the other hand, eliminated the requirement for many infrastructures such as antennas. Cloud services have also helped retailers eliminate some of the costs associated with middleware. Retailers have different requirements based on how they operate their stores. Some retailers must keep large inventories on hand in their stores. Improved visibility of their products helps them improve inventory accuracy, avoid out-of-stock situations, and increase efficiencies. Retailers must intend on implementing appropriate RFID applications based on what their emphases are and how they function.

Applications of RFID in retail

Applications of RFID in retail stores

Transporting products

All the products and product cases get electronically time-stamped RFID tags before their shipment. This is a good centralised tracking system. This enables the identification of tagged products throughout the supply chain. This, in turn, helps to prevent improper displacement of products.

Preventing theft

Electronic price-labelled products ensure proper billing in shopping complexes. This will prevent customers from fleeing the store without billing.

Warehouse transportation

This involves the transport of finished products from the central warehouse to the dispatch area. An RFID transceiver scans the labels on product boxes or crates as they pass through the exit gate. The RFID goods flow system stores this collected info of cases.

Manage warehouse and storage

After receiving, the stock-flow system registers these products as present in the stockroom. The RFID stock-flow system stores an RFID tag from the warehouse or storage facility. At each location, the RFID numbers of the boxes and crates are also saved. This has reduced the labour-intensive operations with sensors tracking shipments saving up to 30% on labour costs. RFID wands can typically track items in a warehouse using a system similar to metal detectors, beeping faster as the wand approaches a specific item.

Reduce counterfeit goods

With an RFID tag on the original merchandise, counterfeiters will have a difficult time selling fake merchandise to retailers.RFID readers are installed in retail shops. Here, digital displays provide the details and help consumers to find their desired products. Consumers can also see when indifference is available.

Reduce point-on-sale cost

It reduces costs at the point of sale. Fewer labour hours to check inventory and the facilitation of self-scan checkouts creates more savings. This reduces checkout times and inventory errors. So there is no need to review inventory as frequently as before. Yet, we get more accurate stock level information.

Analysis of Gartner case study of RFID in Retail

Based on the study, we can analyse that

  • Retailers current focus is on developing a cohesive business experience across all of their existing store channels, both in-store and online. As a result, incorporating a digital business is the shot.
  • Consumer happiness and experience will be the game-changer. Consumers will be at the centre of a consumer-driven and service-oriented strategy that benefits their complete lifestyle.
  • Retailers should explore RFID capabilities and learn how an RFID investment might benefit them. It reduces the number of time employees spend on activities, improves inventory management and consequently contributes to a better all-around consumer experience.

Summing up

As a result of the COVID-19 pandemic, retail is once again venturing into uncharted territory. Retailers must now make short-term, immediate decisions, such as how to re-employ and redeploy workers, as well as how to protect the health and safety of customers and employees. Aside from these immediate concerns, retailers have a once-in-a-lifetime opportunity to reimagine store operations. Always keep in mind that consumers are more receptive.

According to RFID in retail case study, there was a 28 per cent increase in inventory accuracy and about a 5 per cent increase in full-price sell-through due to better management. Thus, we can conclude that RFID solutions have the potential to reshape store economics by lowering costs and increasing revenue. Moreover, retailers can set an example through RFID adoption. Adoption of new formats improves processes, standards, and economies in manufacture and tagging.

Lifestyle keeps on changing, and so are our market trends. Periodic case studies for RFID in the retail business is mandatory to know this changing trend and plan accordingly. This detailed survey and analysis will help retailers in adopting a favourable system for their business.

Why Technowave?

You must go for an expert service provider to ensure both technical and product quality. Technowave Group is a strong squad of qualified and experienced specialists capable of serving a wide range of AIDC industrial solutions. We have a robust customer base spanning retail, supply chain, manufacturing, healthcare, hospitality and government.

Technowave has a strategic alliance with global brands like Datalogic and Zebra technologies for their wide range of barcode scanners, barcode printers and RFID label printers. Also, you can choose your favourite RFID readers and antennas from brands like Impinj, Nordic ID and Omni ID.
In-Store Automation, Fixed Asset Tracking, Apparel & Jewelry Tracking, Stock Count and Warehouse Automation are all addressed by its easyTRACK Asset tracking and easyTRACK Inventory tracking systems.

Additionally, Technowave provides you only with top-notch products and the best quality service. We also have over twenty years of tremendous history spanning India and the Middle East.

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