Radio frequency identification has finally found its rightful place in the retail IT ecosystem. The rise of omni-channel retailing and shoppers' increased expectation for on-demand information are creating unprecedented pressure for real-time inventory visibility. As a result, RFID is poised to become a critical retail enabler, uniquely designed to provide the insight that retailers need to optimize inventory and store operations. To draw a clearer picture of exactly what is happening with RFID in retail, Tyco Retail Solutions teamed up with Ann Grackin and Bill McBeath, at ChainLink Research, to identify the main use cases driving the adoption of RFID today, and to outline the goals of RFID projects in place among retail executives. -
The ChainLink team surveyed and interviewed more than 120 retailers, primarily headquartered in North America and Europe, but many with a global retail footprint. The results of this research underscore the firm belief that RFID technology is the cornerstone to achieving inventory visibility, and that it will help drive store performance in 2014 and beyond. -
Drivers for Implementing RFID Today
Drivers for Implementing RFID Today RFID technology has made huge strides in recent years. The retail user community has conducted pilots, learned many lessons and identified strong use cases. Standards have been established to create interoperability across the supply chain. RFID technology performance has improved greatly, while at the same time, costs have dropped dramatically. The technology promises new insights as retailers transform their business operations. To find out what is driving the current wave of adoption, the ChainLink team asked retailers for their top three reasons for implementing RFID now (see Figure 1) -
Not surprisingly, improved inventory accuracy was noted as the top reason for implementing RFID among retailers surveyed. Unlike any other technology, RFID has the power to capture item-level, enterprise-wide inventory data, in order to provide accurate visibility. Without this unprecedented level of accurate visibility, retailers lack the strategic insight to fuel better business decisions. With it, however, they can optimize sales, improve processes and control losses. In fact, RFID inventory-intelligence solutions are proven to increase item-level inventory accuracy to 99 percent, which improves store merchandise allocation, selling floor availability, sales and customer satisfaction. And with RFID-based solutions, forward-thinking retailers are laying the foundation for a successful omni-channel retail strategy, critical to success in today's retail environment.