Aug 03, 2022As high streets re-establish themselves and customers enjoy the physical shopping experience once again, the retail sector has fortunately witnessed some impressive recovery. Despite this recovery, research indicates an unavoidable depletion in the retail workforce, and as a result, it is now more important than ever to deploy effective inventory-management tools to support existing retail staff. With the continued use of inefficient and time-consuming manual tasks, retailers find their staff becoming increasingly overburdened, which has the potential to compromise employee morale and overall productivity.
As a result, this can directly impact customer satisfaction, a key asset for retailers hoping to remain competitive in an increasingly crowded sector. After all, research carried out by SML indicates that employees spend an average of 14.6 hours per week carrying out manual inventory tasks such as counting, finding and transferring, with some respondents even recording up to 36 hours per week on similar tasks. Essentially, with more efficient and accurate stock-counting processes and technology that helps associates find items more efficiently, the experiences of both customers and staff alike can be enhanced.
The Depleting Workforce Conundrum
Various factors can explain the depleting retail workforce, some of which are outside of the control of retailers, such as sociopolitical issues and the lasting impacts of the pandemic. These instances are not exclusive to the retail sector but they do create unique challenges, in that brick-and-mortar retail was already trending toward reduced staff sizes and smarter labor models before the pandemic. Essentially, retaining a satisfied and experienced employee workforce is key to remaining competitive, while simultaneously driving sales, pushing for customer satisfaction and improving the overall performance.
Recent research echoes multiple findings in its recognition that high levels of workforce engagement result in a higher quality of work. This is instrumental in today's crowded retail market, where staff in increasingly demanding positions may be becoming overburdened with the added responsibility of completing tasks like manual stock counts. Retailers should consider the responsibilities of their staff, viewing this holistically as a force that potentially impacts overall output and performance.
Rethinking Manual Stock Counts
Retailers may be continuously disadvantaged by the allocation of labor into manual count processes that fail to deliver accurate inventory data anyway. With the continued growth of omnichannel sales, this inaccurate inventory often leads to inefficient searches for products that are not actually on hand. In both instances, personnel are occupied with tasks that fail to deliver consistent results, and both store staff and the customers whom they are assisting experience disappointment and frustration resulting from inaccurate inventory.
A depleted, overburdened workforce coupled with inaccurate inventory figures may well be the perfect storm for retailers to lose their competitive edge and fall short in the provision of expected levels of customer service. By employing certain technologies, retailers can ensure that their staff is freed up to offer the best standard of customer service, elevating the personalized in-store customer experience while simultaneously improving the accuracy of their inventory management.
How RFID Can Help
RFID technology can offer a lifeline for retailers and their overburdened staff by streamlining time-consuming manual processes and ensuring the accuracy of inventory insights. According to recent research undertaken by SML, almost half of traders expect enhanced stock visibility to directly improve their customer service provisions. Enhanced stock visibility is increasingly important to retailers wishing to remain competitive, and can directly improve the customer experience through streamlined service and real-time stock insights.
With an inventory accuracy of between 93 and 99 percent, using RFID technology has a multitude of benefits for retailers, staff and customers alike. Deploying RFID technology encourages resilience, a vital quality in today's unpredictable retail environment, which demands that retailers quickly respond and adapt to sudden change. Besides ensuring efficiency and accuracy, RFID technology aids retailers in their efforts to adapt to changes in the retail industry, such as the recent surge in demand for "buy online, pickup in-store" (BOPIS) and "buy online, return in-store" (BORIS) services.
Through the utilization of item-level RFID technology, retail staff can offer a seamless customer experience by efficiently locating items and fulfilling the demands that an omnichannel approach brings. This, in turn, leads to the provision of improved customer service, while adequately equipping staff with tools to better prepare them for effective inventory management and omnichannel operational execution.
Dean Frew is chief technology officer and senior VP for RFID solutions at SML Group, and the founder of SML Intelligent Inventory Solutions (formerly Xterprise, purchased by SML in 2013). Frew is responsible for driving SML's RFID tags and solutions strategy. He runs the RFID solutions division, based on his 20-plus years of experience delivering RFID solutions to retailers and brand owners around the globe.
