Radio Frequency Identification or RFID is not an entirely new technology. Businesses in logistics, engineering, and construction have been using it for years. And your retail business may also benefit from it.
Simply put, RFID works through the use of small tags attached to an object. These tags actually emit or send off signals. If you wish to use it for your business, you can easily read a variety of information by just using remote scanners.
RFID can benefit your business in more ways than one. If you wish to know more about this, here are some of the things to keep in mind:
Understanding RFID’s Benefits
This system has a number of applications that will make your operations much more efficient and effective. For one, it can aid you in consumer research. According to Grand View Research, RFID bears unique product numbers that are attached to the product. When a customer buys and pays for that good using a credit or debit card, the shop manager can link the products bought to the recorded RFID data. Doing this will allow them to map out consumer behaviour inside a store. As a result, shop owners will optimize their store layouts for a better customer journey.
It also makes tracking inventory more efficient. Barcode scanning can be laborious, as you will need to scan each product closely one by one. On the other hand, RFID scanners can actually read tags that are more than ten feet away in a matter of seconds. In the context of retail, you can use this to monitor stock in real time. In turn, this helps in maintaining the balance between supply and demand.
Moreover, RFID systems can help in strengthening the security of your retail shop. Shoplifting is still a pervasive crime, and one can counter it through RFID. A quick remote scan may reveal that a customer is stealing something from your shelves. This will perfectly complement your security staff.
Ultimately, the integration of RFID in your business can help you increase your revenue.
Investing in RFID
Investing in RFID is a good idea, but mind that it comes with certain costs. However, it must be noted that it varies depending on the type of system that you will use or the purpose that it will serve in your business. Retailers may be required to shell out more than $10,000 for the system. However, a more complex RFID system, which is used in warehouses and department stores, may cost more than $100,000.
The costs include the hardware, which covers the tags and readers. Installations and repairs of Zebra printers should also be taken into account. On top of these, you will need to spend on consulting, staff training, and data storage.
Before you go for it, you need to conduct a comprehensive study to make sure that the benefits actually outweigh the costs, especially if you’re implementing a large-scale system. It will also be wise to seek the advice of your stakeholders, such as your business partners and department heads.