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How Does RFID Technology Improve Inventory Management

RFID (Radio Frequency Identification) technology is one of the fast obsolete ways to replace technologies that retailers users use for asset tracking and inventory management. Earlier, there were two different old-school techniques used for inventory management and causes several problems. But with RFID technology, things have changed, and retailers now have great peace of mind in order to track assets and inventories.

  • It Targets Previously Hidden Costs Draining Operations
Having greater visibility enables you to notice areas that need much improvement, like inefficient storage spaces. Through storage optimization, retailers can easily expand picking capacity by almost 30% without even having more stress on the workforce. RFID also help in ensuring by:-

  • Diminishing the overall costs that happen because of over-stocking
  • Managing on-the-move inventory in real-time in order to avoid misplacements
  • Verifying that the inventory compliances with the requirements throughout the process of supply chain
  • Better Customer Service

With the help of locating inventory quickly in real-time, RFID systems can effectively reduce delays during the production as well as fulfillment stage. Along with that, the workforce gets equipped in a better way to fulfill tight deadlines in order to have faster delivery.

As RFID readers can hold or capture several codes in one time, they can easily verify orders as well as products before leaving the shipping dock. This essentially eliminates the errors that take away potential customers.

  • Collect Predictive Analytics

The onset of virtual or online trends might be a crucial factor that drives the necessity for more visibility. Having an efficient RFID system ensures that it collects actionable data based on the current workflows and past demands in order to deliver crucial analytics to help you prepare for the upcoming challenges.

Effective insight also leads to reliable foresight. RFID tags are designed so that they perform flawlessly even in some arduous settings and thus helps the retailers fulfill the outlined goals while adapting to the custom requirements.

  • Increases Efficiency of the Process

The difference in the overall process of efficiency from using RFID in retail is seen on large scale. RFID reader, irrespective of whether used as a handheld device or in the fixed device, can detect hundreds of individual items at one go. As every item has a unique ID, conventional readers can hardly read more than one data.

RFID inventory counts for outbound or inbound checks are incredibly fast and also reliable. RFID has successfully reduced the overall cycle count by staggering count of 96% straightaway when it comes to storage inventories. This clearly suggests that inventory management RFID is way more effective than any other mode of tracking assets and inventory in the retail business.

RFID technology has successfully streamlined the way of asset tracking and inventory management in the retail business. The above benefits show it all in a better way. Please feel free to share your insights with us below in the comment section regarding the post.