Retailers Reaping the Rewards of RFID Omnichannel Strategies
Real-time visibility into a retailer’s inventory across all of its warehouses, stores and fulfillment centers is essential for keeping inventory accessible and in stock, and one of the best ways to gain this valuable information is through the use of RFID.
RFID might not be the newest technology on the block, but recent drops in the cost of implementation have seen its popularity soar over the past few years. According to IDTechEx Research, RFID is being adopted for tagging apparel more than any other application by volume.
Until now, RFID has been more popular at the pallet level. This gives retailers and manufacturers a view of where pallets are at any given moment but says very little about what that pallet contains. Item-level tagging, on the other hand, can technically occur anywhere, but many of the big retailers are opting to have manufacturers sew the tags into garments or add them to their packaging. It might be an expense, but it’s one that can boost picking and shipping accuracy by a remarkable 80 percent.
RFID Market Value Continues to Climb
It’s hard to see the downside; item-level tagging can help retailers plan for demand, know when to reorder, and improve their communication with suppliers. This year, IDTechEx reports that the RFID market’s value will rise to $11.2 billion; last year’s figure was $10.52 billion, and it stood at just $9.95 billion in 2015. This rise is only expected to continue, with IDTechEx predicting it will be worth $14.9 billion by 2022.
One factor that will fuel this rise is the increasing realization that omnichannel strategies are the only way modern retailers can remain competitive and that RFID technology is a dependable and effective way of getting the job done. While implementation might run into a few challenges, such as integrating different systems, the effort is certain to pay off.
This blog post was based off of an article from Ingram Micro Advisor. View the original here.