Retail Sector Solution Offering

Efficient asset utilization, inventory management and other retail dynamics make the retail sector extremely fast paced and dynamic in that it is constantly evolving. The need for business processes and efficient operations management practices can result in tremendous reduction of variable costs. This is where RFID makes a huge impact.

RFID in retail- Implementation features

Inventory management

RFID can be used as a technology to enable retailers to track how often a particular item was removed from a shelf, rack, container, or promotional display for inspection and even how long it was removed. This could provide data from which to infer shopper dynamics and retail psychology.

Security

When a high value item is removed from a shelf, an alert could be sent to store security, and it could then track the movement of the merchandise with graphical displays on computers or intelligent hand-helds.

Traceability

Traceability can also be implemented to allow for tracking the product in the retailer space until a customer pays for it and checks it out

Shelf management

Retailers like food and drug store managers can move their time-sensitive merchandise to the front of the shelf, reduce its price to promote faster sale, or ship it to a store with greater demand. RFID can also be used coupled with electronic shelf labels to automate pricing based on (a) demand and (b) supply and (c) the number of items on the shelf (and available from the stockroom) and rules that get set up by store management. Dynamic pricing is a huge value-add in this area.

Process improvement

RFID implementation leads to reduced inventory replenishment time, less inventory expiration and spoilage, fewer incidents of theft, and shorter lines at the point of sale.

Cost effectiveness

Inventories can be better managed with lowered lead times and transit times once a system is setup to track inventory and goods. Customers will be better served as inventory replenishment can be better managed. Merchandise to be more effectively displayed to attract purchase, which means that distribution channels and resellers can start paying premium pricing based on real time information. This in turn can translate to shelf and product positioning in retail stores. Merchandise can be sold with higher margins. Merchandise and store property can be better protected and tracked. Labor can be more effectively utilized. Dynamic pricing is something.

According to the Aberdeen group, best-in-class retailers showed improvement in four areas, identified as KPIs for the retail sector:

30% decrease in inventory replenishment time

42% fewer incidents of theft

25% less customer wait-time at the point of sale

25% reduction of merchandise spoilage or price markdown