Indian retail sector is evolving at a rapid pace largely riding piggyback on technology infusion triggered by customer demand for classy shopping experience.
Many cities and towns are now dotted with supermarkets, Hypermarts and convenience stores using advanced technology to create unforgettable shopping pleasure for customers. Retailers have enhanced their operation using technologies such as fast billing POS and payment solutions, CRM, mobile POS, cloud POS, and other omnichannel business modules, are helping them to manage businesses seamlessly with less human interferences and errors.
Recently, after seeing the huge success by established retailer chains in adopting Radio Frequency Identification (RFID) tags in establishing security and preventing pilferages and thefts, small and medium shops are increasingly linking RFID tags with their valuable assets, merchandise and equipment to prevent losses.
These tiny electronic gadgets are overwhelmingly used in textile shops, departmental stores, super markets and Hypermarkets in retail sites predominantly to prevent thefts and pilferages of goods.
RFID technology is also used in other applications as well such as inventory control, container or pallet tracking, patient and medicine tracking in hospitals, manufacturing lines, parking lots, ID badges for managing attendance, entry and exit, fleet maintenance and airport security.
We will analyze the usages of RFID in retail business environments.
According to a recent study, on an average, store owners lose 10 - 15 per cent of revenue annually due to shoplifting, wastages, invalid inventory and pilferages caused by store executives.
All along, Indian grocers and retailers use RFID tags to embed merchandise to prevent loss and tracking. But things are changing now as the technology has also been proved useful to manage inventory efficiently.
Though Point of Sale (POS) software can help retailers manage inventory while billing merchandise, RFID tags have multiple advantages. It can help store managers not only to account for sold and unsold goods, but also help customers and store executives to locate specific items on the shelf or at storage rooms anytime and from anywhere.
For store manages, these tiny gadgets help them know current stock details so that they can plan its availability to meet the day-to-day demand. Items which are nearing expiry can also be identified in advance and suitable alternative decision can be made.
Though retail business houses in India follow their counterparts in advanced nations to have some pretty innovations in their stores such as Internet of Things (IoT) applications and dressing room smart mirrors to create convenient and memorable consumer experiences, none of these will matter if retailers fail to match the inventory with what the consumers prefer. The capability to track goods, not just for shoppers, but for store executives looking to locate products, is made possible by the real-time inventory visibility that RFID technology brings.
Advantages of RFID in retail sector
1. Reduce losses due to pilferages and shoplifting
2. Increase sales up to 20 per cent
3. Create seamless shopping experiences
4. Better source-to-checkout visibility
5. Solid Return on Investment
6. Brands can improve incoming receipt and outgoing validation processes
7. Elimination of human error in product delivery and verification