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RFID for specialist retail:

A solution for the future

RFID has been lauded as the next big thing in industries such as manufacturing and supply chain/logistics for many years, where the benefits of asset tracking have always been more obvious. In reality many other retail organisations seem to have remained hesitant and sceptical about its use in-store. That could be about to change.

Until recently, most RFID applications targeted pallet and case-level tracking. The focus is now shifting to item-level tracking. Smart retailers, particularly high-end specialist retailers, are leveraging RFID adoption as a way of improving stock visibility, protecting inventory and enhancing customer experience (more choice and less wait time).

As costs fall and integration eases, RFID will increasingly be adopted by those that want to up-their-game and use the technology to improve their business processes and in turn the relationship with their customers. Although RFID implementation can be challenging it can also open the door to a wealth of unseen opportunities too.

RFID and retailers

Retailers face the constant demand to have the right goods available at the right places in the right quantities. First and foremost, incorporating RFID technology into existing supply chain operations can reduce the labour required to monitor goods movement and inventory flow. In terms of asset tracking in-store, RFID enables retailers to track stock throughout without the requirement for line-of- sight. This ensures there is “one version of the truth” for inventory. It also makes sure that all the stock levels in all the size and colour combinations are available and in the right places.

As well as maximising sales opportunities and inventory turn and making sure that customers can always find what they want it also means that stock can be tracked at the click of a button. In turn, this frees staff from tracking down stock and allows them to give customers more attention, thus enhancing the experience. Retailers who embrace item-level RFID tagging in this way will win the hearts and minds of their customers, while lifting sales and boosting their brand’s image.

RFID also can act like a security guard at a gateway. As goods are moved from dock to truck to store, RFID can conduct automatic inventories and compare the goods with the manifest. Goods flow becomes more complete, stock outs are reduced, overages are curtailed and accounting discrepancies are removed.

What do retailers need to consider to ensure a successful implementation?

Operations, supply chain/logistics and senior management all need to be in board with the reason for the implementation. Whilst the first two groups are to be expected as they have much to gain from the improvements in asset tracking, senior management are able to evaluate the business benefits and really need to be onboard in order to ensure successful implementation. RFID data need to be linked into all the systems as the value of being able track is valuable at an item level as well as giving overall view of the business.

Choice of media is important too. Ideally you should be able to affix RFID tags directly to the item or its packaging. This means that they are easily removable after a customer purchases the product which offers a more cost effective solution.

Traditional RFID label media are printed on inlays spaced at regular intervals defined several years ago to help ensure accurate data encoding. Today, on-pitch printing and encoding technology is available that supports very close inlay spacing, which can reduce the cost of media by as much as 10 percent.

On-pitch RFID printers encode tags at the same pitch as specified by the inlay manufacturer, thus eliminating the extra process of spreading apart the inlays prior to encoding. Successful on-pitch printing requires printers designed with tight mechanical tolerances, advanced RF technology, and intelligent firmware. On-pitch RFID printers that also support easy integration with wireless networking, provide a future-proofed path for upgrades as RFID standards evolve, and flexibility to support various inlay types and smart label requirements.