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How does RFID Improve Inventory Management for Retailers?


What is Radio Frequency Identification (RFID)?

Radio Frequency Identification (RFID) refers to a wireless system which consists of TAG and READER.

The tag which shares information to nearby reader through radio waves, can be active or passive. While the reader is a device that contains antennas, which able to send out radio waves and receive information from RFID tags.

In retail industry, RFID technology is commonly used in inventory management, asset tracking, equipment tracking, and warehouse management, to improve the efficiency of daily operations.

Is RFID Technology Workable for Retailers?

The answer is YES.

Especially if you consider to expand your business, or face with some inventory problems, such as increasing SKUs, unmatched figure between record and physical stock, inventory lost etc.

RFID technology may be an option to resolve your concerns.

Advantages of Using RFID Technology in Inventory and Material Management

Increased Inventory Accuracy

RFID tags allow retailers to identify individual items and products, without need for a line-for sight. After implementing RFID technology, each item and product can be tracked instantly and accurately, which definitely can help retailers to improve the inventory visibility and availability.

Reduced Manual Efforts

Unlike barcode scanning, which requires a line-of-sight to scan the barcode individually, RFID technology is able to read multiple tags at once. With a RFID system, stock receiving, counting and shipment verification can be done rapidly with only few staff, which definitely enables retailers to reduce labor costs, as well as human error caused by manual operations.

Better Customer Experience

An efficient cloud-based inventory management system featuring RFID technology, allows retailers to get the real-time and detailed inventory information at anytime and anywhere.

With accurate and updated information, retailers can reduce the cost of overstocks, minimize out-of-stock situation, and forecast demand and profitability more accurately, and result in better sales and profit.

RFID technology benefits retailers in every way, however, it also has its limitation, such as –

  • Material Limitations – RFID may not be suitable for products in metals or liquids, as these materials may affect the accuracy of reader.

  • Security Concerns – RFID may contain personal information if using on membership card, and information may be stolen if the tag is not well encrypted.

RFID technology vs. Barcode system

Do you want to get the real-time and detailed inventory information at anytime and anywhere?

Or not sure if a Cloud-based Inventory Management System featuring RFID is your best solutions?

Contact us today and we will provide you with professional consulting and technical assistance.

You can reach us by:

WhatsApp: +852 3157 1384


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