RFID In Retail Industry
RFID in retail industry has solved major problems related to customer services. Improved customer service would ultimately lead to increased sales. With the help of RFID, it becomes easy for the sales staff to locate a particular item in the store and check its availability in less time. It gives accessibility to the products from store to store and also to the entire database.
Improves the level of customer service
The overall time spent by the customer in shopping is reduced as the desired item is found in less time making shopping a better experience. Also while scanning of a particular product is done this technology provides access to the information about the product. It calculates the prices of the products kept in the shopping bag simultaneously, so the shopper is aware of how much he/she is spending. As the total of the shopping done is already calculated the customer has to just pay, thus waiting time for billing is reduced.
Increases customer’s loyalty
The RFID tags attached to the items has the ability to provide feeling of a ‘virtual personalized shopper’ to the customer. It also facilitates in tracking down the shopping preferences and habit of the customers and thus helps in introducing right rewards connected to it. The information about customer’s shopping style, their shopping history, past purchases, etc can be tracked down, thus value added services could be provided to them giving the customer the feel of personalized treatment. Even decision regarding purchase of a product could be made in fitting room, as the RFID readers in fitting rooms that are connected to the computer, provides all information regarding the garment. Also the information related to the item is confidential and not to be unveiled to the customer, can be protected by your IT department. Thus security is also ensured from seller point of view also. These added benefits lead to better shopping experience for the customer which ultimately leads to customer loyalty towards your shopping hub.
Better inventory management
Scanning of bar code has become mandatory in inventory processing, but it has certain drawbacks compared to RFID technology. The bar code stickers show human errors as it has the capacity to encode limited and stagnant information. Bar code is unable to read or write multiple codes. RFID’s capacity to track the items efficiently and encode multiple codes, resulting improved inventory management. It provides better safety in terms of fast recall of the stock and minimizes the theft also. It helps the supplier in maintaining the stock of goods and keeping the shelf filled with goods whenever needed. So the customers would never face storage of a product thus avoiding loss of sales and profit. The key element in today’s market is to maintain appropriate in-stocks and not having too much additional inventory.
To manage inventory is a costly affair for the retailer. The information accessed through RFID helps in keeping a check on the inventory and its supply. Thus, maintaining the right percentage of inventory. The ratio of demand and supply can be well maintained as the items which has increased sales is tracked down and the stock is uploaded likewise.
Item level tracking
Item level tracking is the most important objective of RFID system. This tracking gives a personalized ID to every unit of inventory. This results in better tracking of the items. As it saves time, the re-ordering of the items becomes easy and can be done in lesser time. The percentage of shrinkage is reduced due to proper and timely shipments of the items.
Futuristic view
Advanced technologies are being developed in the field of RFID tags that are more advanced technologically and are of reduced costs. Generally the cost of RFID tags range from twenty cents to one dollar which is not so reasonable cost. Therefore in order to make it cheaper, the prices are required to fall to five cents instead of twenty cents. RFID tags are a part of RFID system so in order to increase its usage, and required to be cost effective. The future of RFID is very bright in retail sector as right from inventory management to product manufacturing, this system provides more efficient and advanced retail experience to both customer and the seller.
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