RFID technology enables you to combat the diversion and loss of products from stores

This technology responds to the new challenges of unified commerce by providing greater visibility into your inventory and fostering the shopping experience.

Tyco Retail Solutions has partnered with various industry groups to analyze the value of RFID technology in ensuring inventory accuracy and ensuring store efficiency. This research confirms the use of this technology as the best way to combat inventory diversion, increase its accuracy and allow greater visibility. With this, stores respond to the new challenges of unified commerce.

IHL Group conducted a study focusing on the problem of inventory diversion within the retail sector. The combination of inventory breakage (out-of-stocks – Oos) and excess inventory, it's a problem that reaches 1,1 trillions of dollars in industry.

Because of this problem, retailers cannot completely rely on the availability of their stock, which causes a reserved attitude when it comes to exposing items for sale online and offering the option to 'buy online and pick up in store' (Bopis). This can put the customer experience at risk, causing an average loss of 8,7% of total sales.

Real-time visibility

According to the latest study on RFID conducted by Kurt Salmon, retailers seek to offer greater efficiency to buyers (55%), get better inventory visibility (33%) and increase operating profits (30%).

Inadequate inventory visibility makes it more difficult for retailers to successfully implement unified commerce initiatives, due to the inability to cost-effectively meet customer demands in order to be able to "shop anywhere and receive the product anywhere".

The key to achieving efficiency is to have full, real-time visibility into all store items and this is possible with RFID technology. Adopting this technology and conducting regular counting processes helps retailers prevent inventory diversion, increasing accuracy to a 99% and keeping it in a 95-99%. With greater inventory accuracy, the number of buyers who find the desired product increases, being able to grow sales between a 5% And 25%.

"RFID-based solutions enable retailers to accurately deliver items in stock in real time and meet customer expectations while increasing sales", comments Brent Brown, Vice President and General Manager, Inventory and IoT Intelligence, Tyco Retail Solutions.

Benefits of RFID

With RFID technology, the information that is obtained from the items is in accordance with the inventory.
Recently, Platt Retail Institute published a report on the quantifiable benefits of RFID based on research conducted with Macy's and its RFID program.

Macy's has pioneered the deployment of rfid-powered products and has been using Tyco Retail's inventory solution for years..

The study revealed that it had gone from having an inventory deviation from the 4-5% monthly. before implementing RFID technology and performing monthly counts, to a 2-4,5%.

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