The future of retail is a marriage between item-level RFID and 2D barcodes
The retail industry has seen significant changes over the last few years, with many pundits eager to say that retail is “dead” as more and more stores lower their shutters for the last time. However, whilst it’s true that the landscape has become increasingly competitive, the sector as a whole is far from extinction as retailers are quickly recognizing the need to not only have great products that customers are expecting, but they must also implement game-changing technologies to remain relevant.
Retailers that fail to adapt to evolving customer demands could soon find themselves closing their doors for good. Yet, whilst there is a clear need for retailers to innovate, they also need to be careful where they invest their precious capital. The sector is full with buzzwords of emerging technologies such as AI, big data and innovative payment solutions.
Challenges with inventory management leading to missed sales
One of the most significant challenges still experienced by retailers is their struggle with accurate inventory viewability and management. This poor visibility leads to missed sales opportunities due to out-of-stock products, but also has a long term impact on customer loyalty.
In addition, many retailers are in the dark and are unaware that they have such a poor view of their inventory. For example, SML previously worked with a sporting goods retailer who believed they had a sufficient view of their inventory. Yet, once they had piloted SML’s RFID solutions, the retailer discovered that their stock accuracy was just 68% with items being misplaced or lost during the supply chain process. As a result, the retailer realized they needed to begin making significant changes to its operations.
Integrating legacy technology with the new
To adapt to the evolving retail sector and gain a greater view of store inventory, more retailers are utilizing a combination of item-level RFID and 2D Barcode with GS1 standards based item-level data embedded within as both are being adopted in retail environments. These technologies have their own advantages and, when combined, have the ability to provide an innovative inventory, point-of-sale (POS) and brand protection use cases.
SML RFID has worked with a number of retailers and global brands that have utilized item-level RFID for inventory management whilst also implementing 2D Barcode technology with embedded EPC at POS. By utilizing the two technologies together, we’ve seen 50% savings to the retailer by not using RFID technology at POS whilst still getting access to EPC level data on sold items.
To find out more about utilizing item-level RFID and 2D Barcodes, read our whitepaper here.