- The Benefits of an Efficient RFID System
- Efficiently Managing Mixed-State Products with RFID
- Adopting a Hybrid System
While more and more retailers are turning to radio frequency identification (RFID) technology to manage their day-to-day operations, many are not quite there yet when it comes to a full store rollout. For multi-brand retailers, some of their products may still arrive without RFID tags, with brands like Nike and Under Armour fully RFID-tagged, while other brands, like Adidas, Puma and New Balance, are still in the process of tagging their products at source.
Even single-brand retailers may struggle to tag all products—for example, small accessories or licensed products that do not arrive via the typical supply chain. It is also important to be able to manage a mixed estate of tagged and untagged products so that retailers can make the most of RFID software at the earliest opportunity, rather than having to wait for 100 percent of product to be tagged.
The Benefits of an Efficient RFID System
James Eastwood
Without RFID, stores must trust that all the items that are on a shipment notice have been received, and that there have not been any errors in the shipping process, but with RFID, a quick scan is able to flag any discrepancies. However, if only a portion of the products have RFID tags, this can mean that two different systems must be maintained for the same receiving shipments process: one system that can handle RFID (item-level data), and another system for items without it.
Ensuring a company has the adequate RFID technology in place has the potential to improve inventory accuracy to 99.99 percent. This translates to optimizing sales and enhancing the consumer shopping experience, allowing retailers to report and act on any discrepancies that occur within the shipping to instore journey.
Efficiently Managing Mixed-State Products with RFID
Typically, a retailer implementing RFID in an environment where there are still untagged items would need to maintain two systems to receive the two product types. Sophisticated technology allows a retailer to retire their existing system completely, as well as maintain accurate receiving, and also ensures a more flexible approach to RFID adoption. For example, a multi-brand retailer may wish to utilize the existing tags that a brand is already providing, such as Nike or Under Armour, but cannot yet tag all of the other brands that it manages. In this example, a retailer can benefit from RFID immediately and add additional brands in the future.
This allows a retailer to deploy a more gradual approach, such as initially tagging specific categories and adding others further down the line, in order to help spread out the investment. Additionally, this works where there may be logistical limitations—for example, only being able to tag one season at a time. Having to maintain two systems in order to deal with tagged and untagged items is costly and complex for store personnel, whereas receiving every shipment with just one system is the preferred option.
Adopting a Hybrid System
RFID technology has ultimately positioned itself as a bedrock for retailers, allowing them to better manage their inventory and shipments with tagged items. However, the issue with non-tagged products is finding the best system. This all depends on the size of the item and adopting a hybrid system that best suits your inventory needs.
Implementing RFID across all product lines is not an overnight fix, but there are strategies out there for retailers that operate a hybrid system. Even partial RFID tagging is hugely beneficial for brands, and as they gradually integrate it across stores, processes are immediately streamlined and become more efficient for retailers, both now and in the future.
James Eastwood is a global project manager at Nedap Retail, and he focuses on delivering best-in-class RFID store solutions to fashion retailers around the globe. A deployment expert with experience in RFID and digital solutions, James has led omnichannel, transnational and multi-discipline initiatives. He has also worked for significant periods in Europe, the United States and Australia, and is motivated by innovation and technological enhancements in the retail space.