The Role Of RFID Tags In Modern Retail

The use of RFID (Radio Frequency Identification) tags has been revolutionary in the retail business as they allow organizations to track sales and manage inventory efficiently. Such miniature devices work by sending out and receiving data through radio frequency and hence make it easy for retailers to manage products within the supply chain.

Improving Inventory Management

Improved inventory management is one of the key advantages of the retail RFID tags. Lau et al. noted that the traditional barcode method has some limitations in that it works only by line of sight scanning and therefore consumes time. On the other hand, by the use of RFID tags, retailers can retrieve information even from afar, and therefore whole shelves or pallets can be scanned in a few seconds. This efficiency leads to fewer stock counts and less inventory shrinkage.

Enhancing Customer Experience

RFID is also very useful in improving the experience that customers have with the organization. Retailers can guarantee the availability of certain high-demand products by having constant information regarding the level of stock at any time. More so, as a result of the faster transactions that can be performed as a result of the presence of RFID tags, customers do not have to wait for long before being served. Some stores take it a step further by employing RFID to provide customers with individualized advertisements by tracking the customers’ purchasing habits.

Improvement of Supply Chain Management

Through the adoption of the RFID tagging system, an organization is able to simplify its supply chain activities by having visibility at every level. For example, a retailer may trace the journey of the products from the manufacturers to the distribution and finally to the sales shelves. This visibility enables organizations to understand some of the barriers that slow down processes and places where there are inefficiencies that can be improved to cut operational costs.

However, as climatic changes that affect activities are constantly changing, the wisest choice is identifying a dependable partner. GIOT, in turn, provides future-proofed RFID solutions planned for wide application in the given field of retail.