Importance of RFID in inventory management

If your business is into selling of products, I’m sure you understand how important it is to track products for a continual growth.

Tracking inventory is the backbone for any retail business, if not managed accurately there will be chances when you’ll have to deny your potential customers, just because you do not have stock in hand to process their orders. And, ignoring customers due to stock issue will immediately creates a bad impression in their mind, and your most frustrated customers can even spread a bad word of mouth for your brand.

With the advent of technology, retailers can now access tools that allow the most simplest and accurate way to manage and maintain inventory levels. RFID (Radio Frequency Identification) is in the market since quite a long, however, not many business owners are taking an advantage of this cost-effective inventory management solution.

What is RFID technology?

RFID technology eliminates manual entry and automates the data collection process. Adopting this modern inventory management tool, can decrease labor cost, increase shipping accuracy, and make process faster.

RFID technology

Image Source: https://msdn.microsoft.com/en-us/library/aa479362.aspx

How does it help?

For those who are using scanning barcode technology for managing stock, involves manual takings which can lead to costly errors, if not done correctly. Unlike barcode scanner, RFID technology allows business owners an ability to track and manage the their stock levels without human interventions. This way, RFID technology is widely been adopted by warehouse and distribution owners, as it directly eliminate the need of scanning products, manually.

RFID

RFID key benefits:

1. Accurate stock levels

Maintaining accurate inventory level is the key to successful selling. And, one of the benefits of using RFID technology- is it will help keep your shelves always stocked. Also, for business owners who sell apparel- apart from tracking inventory level, this technology will provide information specific details like size, and color of products that need to be stocked.

2. Safety stock measures

Shoplifting is also one of the major reasons for lading up with inaccurate inventory levels. RFID technology has already proven to reduce such ugly scenarios as it will help you track where the product is going, which in turn, will make it easy to take safety measures immediately to curb the problem. Also, it displays which products are missing to ensure stock levels are updated accordingly.

3. Improved customer experience

Allowing an ability to track and maintain stock levels in a simpler way, RFID technology also helps business owners to make informed decisions on what products and styles are in trend. This technology, allows brick-and-mortar store owners to capture the information about all clothing that people try on, which means it becomes easy to know what products are selling and what is not. Having such data in hand, business owners can easily enhance customer experience by stocking products that are in demand.

So, if you are one of them who has yet not taken an advantage of this technology, you are really losing an opportunity to make the best use out of your inventory.

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