How Accurate Is Your Inventory Data?
5 benefits of RFID technology in retail
An effective multi-channel retailing strategy relies on accurate and up-to-date inventory data to drive automated inventory management systems, and RFID technology facilitates the level of accuracy required.
In our blog this month, we will look at the importance of keeping close tabs on your inventory, the issues resulting from inaccurate stock data, and the benefits of RFID systems in inventory management.
“About 60% of the inventory records are likely to be wrong at any point in time.”
- ECR Inventory Inaccuracy Report, October 2019
How retailers use RFID technology for stock taking
There are multiple ways your retail business can be adversely affected financially by stock data discrepancies. Even the best automated inventory management systems rely on stock levels in the system to trigger replenishments so, if these do not match the actual on-hand quantities, new stock will arrive either too soon or too late.
A comprehensive stock-count at a store or warehouse is a labour and time intensive process meaning high staff costs as well as store downtime. Furthermore, these costs apply every time a count is undertaken meaning the more accurate you want to be, the more it will cost.
Finally, if customers are able to check in-store stock levels online before visiting, incorrect stock quantities could result in not only the loss of a sale, but a diminished view of your brand.
“When we started selling online, we realised we were losing sales because we did not have the correct inventory to fulfill the web orders.”
- Angela Kruse, Finance & Operations Manager Havaianas
Retailers Save Time and Money With RFID Technology
RFID (radio frequency identification) is a wireless technology that can be utilised by retail businesses to quickly and easily identify and track inventory. Stock is labelled with RFID tags which can be read using handheld scanners offering instant, real-time inventory tracking.
“Correcting stock inaccuracies leads to approximately 4% to 8% of increased sales.”
- ECR Inventory Inaccuracy Report, October 2019
Stock-Take In Minutes With RFID Technology
RIOT RFID technology allows a complete stock-take to be completed in minutes, rather than hours (or more). This means you can stock-take daily as opposed to every 6 months or even yearly. Plus, there will be no need for additional staff, and unnecessary downtime, so costs are minimised meaning you quickly recoup your investment.
Accurate Inventory Data With RFID Technology
Reliable, up-to-date on-hand stock positions allow for smoother multi-channel retail operations, preventing missed sales opportunities and more efficient buying and replenishment decisions. Store losses and discrepancies, such as from theft, damage, incorrect shipments, or check-out errors, can be identified and addressed more quickly.
Locate Stock With Ease With RFID Technology
The handheld scanner can instantly show where stock is located and allows for multiple zones within the store, such as shop floor, window, back office, or storeroom, as well as multiple premises. An interactive search function helps staff hunt down required items by beeping faster the closer it gets to the item.
Receive Stock Like Magic With RFID Technology
Process deliveries and transfers with a wave of the wand. The scanner will show what’s contained without needing to unpack the box. (Coming soon to RIOT).
Re-Tagging Your Stock With RFID Technology
This element is daunting, but the time investment will be worth every second as soon as you press play and are able to identify what stock you have in store within minutes.
RIOT and Pinnaca Bring The Benefits Of RFID Technology To Retailers
RFID technology has been around for many years, the difference today is that it has become more affordable for retailers to implement with RIOT, who can fully integrate RFID technology with your systems quickly. Your retail stock is your biggest asset, and RIOT ensures you know exactly what you have at all times.
Pinnaca can advise, implement, and provide support for RIOT RFID technology solutions which can be fully integrated with existing EPOS systems, such as Retail Pro.
RIOT are directly involved in every project to provide their expertise and develop a relationship with you. They supply all the necessary hardware, such as scanners, RFID labels, and label printers.
Want to explore more about RIOT RFID Technology?
Check out some of the videos guides below to help understand RFID technology and how it can benefit retailers:
Scan & Submit
Item Lookup
Variance Investigation
Confirm your count
Retailers save time and money with RFID technology
On average, clients save 50% per annum on stock-taking costs once RIOT RFID technology is installed.
Contact us today and we’ll get back to you to discuss bespoke upgrade options.