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| RFID is the most recent prolific technology that provides supply chain collaboration and visibility. An RFID systems solution will increase corporate ROI while at the same time improving retail supply chain communication. Handled properly, RFID technology can result in an evolutionary change incorporating legacy systems with the real-time supply chain management of tomorrow. Its stumbling point seems only to be a variety of issues outside the technology itself: marketing problems, false promises, security and privacy considerations, and a lack of standards. |
| Some supermarkets are already today tagging pallets, cases and other returnable items, such as plastic crates used for fresh foods. Tagging the crates gives total asset visibility and allows better management of the asset pool. The ability to write to the tag also allows the addition of information such as the contents of the crate, sell-by date and manufacturer. |
| Today some of the leading retailers are the front runners in implementing RFID into worldwide logistics. WalMart has demanded the top suppliers to deliver pallets and boxes with EPC global UHF tags. |
| The main reason for the retailers to implement RFID is cost savings. The large savings will be reduction in manual scanning of pallets. |
| Benefits of RFID in Retail Management |
| Point of Sales |
| At present items are identified and registered one-by-one at POS, either manually or using the barcode reader. In RFID system, multiple items can be scanned without exposing the label to the reader. It reduces time to generate the bill and give a better experience to the customers by reducing queues. |
| Security |
| Once an item is purchased, the tag is removed by the staff. Gate Antennas at the exit counter reads all the items passing across it and raises an alarm in case un-sold item is taken out. Shrink, resulting from employee theft, shoplifting, administrative and paper error, and vendor fraud is a huge concern of retailers that RFID can address today. |
| Inventory |
| Inventory control is often an expensive proposition to retailers in terms of time. RFID enables inventory managers to monitor and control inventory supply at all times by offering real-time inventory visibility. By automating the inventory tracking process, stores can maintain optimum inventory levels by avoiding stock-outs and at the same time reduce costs by eliminating unnecessary orders. Store managers can monitor quick-selling items with increased accuracy, ensuring that their inventory supply is stocked accordingly leading to better demand forecast. |