Item-Level RFID Solutions for the Electronics Retail Market
The retail electronics industry has evolved very rapidly over the last 20 years becoming one of the largest retail segments in the world today. And much like its larger cousin, apparel and footwear, it is also managing inventory using the outdated SKU based methods and technology (barcode). However, consumer purchasing behavior has dramatically evolved and several things are driving this unprecedented change. Some examples are new omnichannel buying models, increasing competition between retailers and the need for a step-function improvement to inventory accuracy to name a few.
The combination of item-level product schemas, standards-based RFID technology and innovative software applications is becoming the next essential element in how electronic retailers manage their inventory and raise the level of service to their customers. And the resultant return-on-investment (ROI) from using these solutions is accelerating the migration of retailers and brand owners to this transformational change within the enterprise. When one looks at the change within the market that these item-level RFID solutions are and will continue to drive, it truly is a New Era in Retailing.
Retailers are using these solutions today to create enterprise value. Learn more in our white paper “How Can Mobile Technology Retailers Leverage Item-Level RFID to Reduce Shrink and Out-of-Stocks?”
Benefits in Electronics RFID Retail Solutions
Item-level RFID for inventory management solutions allows the retailer to know precisely what they have therefore being able to deliver exactly what the customer wants, when they want it. This is accomplished because they have confidence in a 98% accurate knowledge of their current inventory. This inventory accuracy and the resultant reduced out-of-stocks translates into dramatic electronics enterprise operations improvements:
- Sales lift in stores of electronics and related accessories between 3% and 6%
- Reduction of BOPIS cancel rates by over 50%
- Reduction of shrink of over 50%
- Elimination of need for physical counts (non-RFID)
Retailers using these solutions experience real and tangible returns-on-investment (ROIs) resulting in a cascading benefit across the entire retail enterprise.
Challenges in Electronics RFID Retail Solutions
There are a number of challenges that must be addressed for the electronics retailer and/or brand owner to realize these unprecedented benefits. But these obstacles can be eliminated by partnering with SML and leveraging the years of experience, innovative solutions and global footprint to support these transformational projects.
These challenges that need to be addressed include:
- What is the right type(s) of RFID tag(s) that should be used on electronics packaging?
- What is the most cost effective, non-disruptive way to get encoded RFID tags to factories and/or distribution centers?
- How do we determine the right use case to begin with in order to drive the most benefit?
- How do we build an item-level business case?
- What does integration with my existing systems look like?
- How will the solution scale over time?
In this New Era in Retailing, consumers are looking for an experience that enables them to buy products when they want to and where they want to. And they want to do all of this with the confidence that the sale process will meet their high expectations.