Radio
frequency identification (RFID) and its capacity to phenomenally revolutionize
the retail sector have been in news recently. Those who are yet not sure what
RFID does, it utilizes the electromagnetic fields to track the merchandise.
With RFID, the retailers know the location of their stock through every point
of the supply chain – starting from the warehouse to the store.
Even though the retailers have been going by well with the barcode system, they decided to switch to RFID inventory management because unlike barcodes, the RFID tags can be read when they are not in the line of sight. This means a product can be found without manual scanning. That is amazing!
But
how fast the retail establishments are actually implementing this particular
technology? Can RFID ever be the future of retail? To know, please check out
the rest of the discussion right now.
A Slow Start
Given
that RFIDs let the retailers enjoy unmatched visibility into the inventory, you
would think it is used by many industries. But, RFID unfortunately had manifold
false starts. In 2003, Walmart announced at a conference in Chicago that they
need their hundred suppliers to have RFID tags. At that time, it appeared to be
a substantial shift in the retail landscape. Many thought RFID would be the
next huge thing – it still has not been fully adopted by the way.
There
were a couple obstacles – the initial version of RFID was pricey. For
relatively cheaper products like laundry soap or paper towels, using RFID tags
meant sure shot loss. The success of the technology then also relied on other
suppliers. They needed it as a mere supply tool.
Significant Changes
The
scenario now is obviously not same as it was decades ago. Various modern-day
companies have started realizing that RFID can improve user experiences. Thanks
to RFID, the retailers get real-time data from any place, and deliver this data
to the consumer through either representatives or in-store devices that enable
one to browse products virtually.
For
the consumers, this means enjoying complete access to product information and
not wasting their time on the out-of-stock products. For the retailers, this
means high sales volume. The stores such as Macy’s reported about 20% more
sales after adopting RFID technology.
Other
huge advances are near. All the eyes are now glued to Amazon. After this retail
giant acquired Whole Foods, it is anticipated that RFID will be introduced to
all grocery stores in similar capacity.
Bottom Line
While
it is possible for RFID to alter the entire outlook of retail, it is still
unclear how quickly this technology will be adopted by industries all across
the globe. For the wireless retailers who wish to remain relevant under all
circumstances, RFID can offer employees exact product and inventory
information, thus, enhancing the customer journey to the greatest extent.
Although
it is necessary to note that smaller retailers would not invest in RFID unless
of course if they have a large volume. However, as several business
organizations develop progressive omnichannel techniques, RFID can certainly
keep both the ecommerce platforms and the larger brick-and-mortar stores
profitable.
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