How Can RFID Optimize Inventory Management
You may have already heard of how RFID helps. Yes, this technology not only allows you to collect much more information while cutting labor costs, but also provides you data which enables you to improve inventory accuracy, replenish stock more efficiently, merchandise more effectively and more.
Nowadays, most retailers take a complete inventory count of everything within their store once or twice every year, and perform periodic cycle counts. Inventory accuracy is typically around 65%, which means there are items on the floor that a retailer does not know are there, and missing items that the store thinks are there. This can lead to out-of-stocks and lost sales. In addition, when staff are helping customers, they don’t have time to replenish.
With RFID technology, a retailer can count inventory every week and conduct cycle counts daily, at a relatively low incremental cost. Once the system is installed, it might take a worker only an hour to complete an inventory count of the entire store. This not only brings inventory accuracy up to 95% or better, but also makes sure that items are on the sales floor when people want to buy them.
Moreover, RFID also improves store management. If the wrong item is replenished, its tag can be read automatically and the worker will be alerted to the problem. And if a product is not replenished within an hour, for example, a manager can be alerted. When deliveries arrive at the back of the store, the tags can be interrogated, enabling the business to identify items currently out-of-stock and replenish them in time.