Why retailers are choosing RFID for process transformation

This technology is already transforming the sector, not just in areas like inventory management - where you could increase accuracy to almost 100% in storage and distribution - but also in sales processes like streamlining self-checkouts and enabling better customer engagement. 

As retail evolves from omnichannel to unified commerce, it is AIDC technologies such as RFID that will help retailers deliver seamless, customer experiences. RFID is already being used in digital supply chains and meeting regulatory requirements like food traceability, but, arguably, its benefits will be seen most in: 

• Automation
• Visibility
• Supply chain resilience

Automation: Since the pandemic, and subsequent global labour shortages, companies have been looking to automate as many of their processes as possible and there’s been a real shift from manual labelling towards print and apply automation. It reduces the cost of human error, it increases productivity to 24x7 and replaces manual workflow. 

It’s only a matter of time before others realise the benefits of automatic labelling and follow suit. An increasing number of large retailers like Walmart are mandating RFID tagging on more retail items than just clothing to improve supply chain efficiency but can RFID tagging be automated?

RFID item-level tagging can be done manually but it is labour intensive and can interrupt workflows. Today’s print engines with RFID encoding capabilities are so much more efficient in automating the labelling process. With RFID-enabled automation, companies can significantly improve the accuracy of their tracking and reduce delivery errors, they can optimise workflows, and generally improve operational efficiency in supply chain management and omni-channel fulfilment.

Visibility: RFID has been a game-changer for improving inventory and asset management, enabling single or multiple items to be tracked within seconds without direct line-of-sight. It can provide a 360° view of product inventory across multiple fulfilment network nodes, reducing the risk of out-of-stocks and overstocking, saving time and money and giving real-time visibility of stock. 

Retailers are fast realising these financial and operational benefits of RFID but are also exploring where else it can help. The technology is increasingly being used in processes such as theft and other loss prevention, combatting counterfeit products entering the supply chain, aiding regulatory compliance, improving customer experiences through smart fitting rooms, and streamlining reverse logistics processes.

Increased resilience: the past few years have seen great global volatility like Covid-19, a cost of living crisis, geopolitical instability and climate change. Companies working to build resilience into their supply chains are beginning to appreciate how RFID could be the perfect tool to improve agility and combat uncertainty. Armed with real-time visibility and data-driven insights, businesses can better mitigate against disruptions in order to maintain operational efficiency. RFID is good for identifying patterns or trends, enabling businesses to address issues before they have dire consequences. 

Undoubtedly RFID affords lots of possibilities but the science is also complex so it’s important to work with the right partners and equipment. A global leader in thermal label printing solutions and enterprise mobile computer (EMC) technology, TSC Auto ID, has an extensive range of RFID label printers, readers and antenna not to mention a wealth of experience across retail, manufacturing, healthcare and transport and logistics.

Its RFID solutions can be used for transforming many operational processes including merchandising and inventory management, customers and sales engagement, asset and fleet management, and field service.

This autumn, TSC is offering solid, practical advice to retailers and retail distribution centres in how best to exploit AIDC technologies to achieve unified commerce, register your interest here.