Omnichannel retailers are implementing RFID technology to help manage their complex supply chains, improving areas within their operation that can affect end consumers directly. A recent Frost & Sullivan survey reported that the RFID marketplace will grow from $738 million to $5.4 billion in 2020. Omnichannel is a significant factor driving this growth.
The omnichannel supply chain can benefit from RFID with improved asset tracking capabilities. Inventory items can be tracked in real time at any stage in the supply chain. At any time, detailed data about the location, status, temperature and more is available. Having this data available in real time helps retailers to make more informed business decisions regarding inventory. Because there is little to no human interaction needed to collect this data, errors are reduced. This improved accuracy also aids in decision making and the ability to effectively serve customers. According to recent studies, data accuracy increases from 60% to 95% with the implementation of RFID.
Implementing RFID in the omni-channel supply chain also helps to reduce inventory carrying costs. With more accurate, real time warehouse operators can implement effective just-in-time (JIT) inventory replenishment strategy. By reducing on-hand inventory to only items needed immediately, costs can be reduced.
Reducing costs in the supply chain can provide significant competitive advantage. RFID can help to control supply chain costs by reducing labor requirements needed to handle inventory and fulfill customer orders. Reducing required labor leads to reduction in associated costs.
Just as important as efficient and cost effective order fulfillment is returns processing. Omnichannel customers expect exceptional services at any link in the supply chain. Using RFID helps to improve visibility for distribution centers. Warehouse operators can see incoming shipments, making them available for new orders as soon as they arrive in the facility.
To learn more about how RFID can help your omnichannel retail operation contact Datex experts today at www.datexcorp.com firstname.lastname@example.org or 800.933.2839 ext. 243.