Have Any Retailers Reduced In-Store Safety Stocks via RFID Thanks to Higher Inventory Accuracy?

By RFID Journal

  • TAGS
Ask The ExpertsHave Any Retailers Reduced In-Store Safety Stocks via RFID Thanks to Higher Inventory Accuracy?
RFID Journal Staff asked 2 years ago

If so, what benefits have they achieved and how low were they able to bring down the level of safety stocks? Have any studies reported on this?

—Mehdi,

———

Mehdi,

I have not seen any studies specifically analyzing the effect of RFID on safety stocks or the level to which they can be reduced, but a University of Leicester study involving 10 participating retailers found that safety stocks were reduced by between 2 and 13 percent (see Sales Are Up and Overstocking Is Down, Study Reports, Due to RFID Use in Stores). Meanwhile, I have heard anecdotally that some retailers have been able to reduce their safety stocks by 10 percent. This can amount to annual savings of millions of dollars for large retail chains, and it can free up in-store space to expand the selling area.

—Mark Roberti, Founder and Editor, RFID Journal

Login and post your comment!

Login
Register Now

Not a member?
Signup for an account now to access all of the features of RFIDJournal.com!

Previous Post

»