RFID technology in the retail industry
Out of stock is a big taboo for retailers. Wal-Mart has pointed out that if it can solve 1% of the product out of stock problem, then Wal-Mart will be able to obtain an additional 2.5 billion US dollars in sales revenue. In order to do this, retailers have also begun to think about whether they are not aware that the goods are out of stock at all, or do not know that the warehouse is still in stock, or whether the goods are in transit from the factory to the store.
Not only at Wal-Mart. In fact, in the face of modern retail, retailers are facing a common problem, that is, how to maximize the transparency of the supply chain, and how to make every link in the retail chain “visible”. Management". Fortunately, RFID technology makes this kind of "omni-channel retail" gradually become a reality.
Why deploy RFID technology in the retail industry?
RFID technology is a non-contact tag identification technology, and it is the best means for cargo tracking. It is superior to bar code recognition technology in that RFID can dynamically identify high-speed moving objects, and can identify multiple electronic tags at the same time, with a large identification distance.
At the same time, because of the uniqueness of the electronic tag identification function, goods can be tracked across the entire supply chain, thereby simplifying all links of product tracking, obtaining the required inventory visibility in real time, and improving inventory management.
RFID technology is being widely used by the retail industry. Macy’s believes that commodity-level RFID can reduce inventory costs by $1 billion, and specifically stated their "choose the last item" plan, which is to ensure that any item in any store is available for sale and can be easily located. In order to complete the order.
In addition, the "Future Order Fulfillment Vision Study" released by Zebra Technology shows that by 2028, 95% of supply chain decision makers will migrate to RFID-based inventory management. Why retailers are willing to adopt RFID technology? There are three main reasons: First, RFID technology can help companies reduce inventory, second, RFID can improve the accuracy of inventory, and third, RFID can bring more efficient business results.
At present, problems such as high inventory costs, low service efficiency, and low information accuracy have caused great troubles for retailers. They have penetrated into all aspects of the retail industry. The application of RFID technology is the secret recipe to effectively solve the "pain points" of the retail industry.
Application scenarios of RFID technology in the retail industry
The application of RFID technology in the retail industry is mainly concentrated in five areas: supply chain management, inventory management, in-store merchandise management, customer relationship management, and security management.
Inventory management-mainly use fixed or mobile RFID readers to scan the goods in and out of the warehouse and on the warehouse shelves to improve the efficiency of goods in and out, picking, and inventory; improve the visibility of inventory to upstream suppliers Availability and timely delivery; connected with the automatic replenishment system of the store shelves to replenish goods in time to optimize inventory.
Self-service management-through the cooperation of RFID tags and sensors, retailers can update the sales information of goods in real time, monitor the quantity, arrangement, and dynamics of goods on the shelves in order to replenish the goods on the shelves, so as to achieve planning and execution timeliness consistency.
Customer management-RFID applications mainly focus on two aspects: self-checkout and improvement of customers' in-store shopping experience.
Security management-RFID applications mainly focus on preventing theft of goods, followed by using RFID identification codes to replace the original passwords to control the use of IT equipment or the access rights of certain important departments.
It is worth mentioning that each RFID tag has a globally unique ID number, and there is no need to manually read the barcode label of each item. RFID is a more automated technology that can reduce the cost of additional labor. Based on this, greatly improve efficiency and increase supply chain transparency.
For retailers, RFID can also be used as an information carrier. Relying on technologies such as network communication, system integration and database applications, a set of information platform can be established to realize the entire industrial chain from production, processing, storage, transportation, to terminal consumption. Records of each link.
Zebra Technology is a company that can provide complete RFID solutions. As a facilitator of enterprise development, Zebra Technology provides outstanding products, software, services, analysis technologies and solutions to support top-notch personnel in retail, transportation and logistics, manufacturing and other industries.
From mobile data terminals and scanners to dedicated printers, RFID, software and services, the end-to-end solutions provided by Zebra Technology can be widely used in warehouse management, shelf management, store management, etc. in the retail industry to achieve in-store communication, Price/inventory management, mobile payment, online shopping and personalized interaction, such as:
Inventory visibility: Zebra's solution uses multiple collection technologies such as barcodes and RFID to provide visibility into the entire process from the delivery of inventory from the distribution center to the store's warehouse, to the sales floor, replenishment and delivery.
In addition, through the mobile technology solutions provided by Zebra Technology, retailers can build a knowledge platform using a variety of applications running on enterprise-level mobile devices. Real-time information allows sales staff to spend more time communicating with customers and provide more personalized services, product recommendations, and flexible payment and delivery options.
At present, the wave of new retail is sweeping, and China's retail industry is reshaping the pattern. Different from the old model of traditional retail, “omni-channel retail” and “customer purchase interactive experience” are becoming the two key elements of modern retail. They are also the core of RFID technology that can provide high value-added retail enterprises. Zebra technology provides RFID retail solutions can effectively help every link of the complete chain of goods from production, warehousing, logistics to sales, and help the digital transformation of the retail industry.
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