When it comes to keeping goods secure or being able to restock merchandise as soon as it’s needed and improve the accuracy of inventory, there are few better means of doing so than an RFID system. RFID technology performs several duties for a business: it not only makes available stock clearly visible for easier selection, but it also ensures that merchandise is always available to the consumer.
In situations where a business plans to earn more revenue and possess a greater piece of the market by investing in a different channel, RFID can be identified in many cases as a necessary ingredient for success.
Many businesses have been using RFID systems in several ways over a number of years, including for the purpose of ensuring stock safety via RFID security labels. This type of technology has tied in well with the desires of the modern shopper. Today’s shopper wants their items as fast as possible, whether they order them online or are visiting a store to get them. With RFID systems in place, owners need not worry that wanted merchandise won’t be available.
However, the road to the implementation of the RFID system can be hindered by the doubt that RFID will provide ROI. One way to help ensure that RFID implementation will be well-received is to obtain accurate data with regard to numbers, experience and resources, to name but a few.
The first and most important step in the obtaining of accurate data to prove ROI for your RFID system are numbers. Every kind of internal data, coming from processes like replenishment, ordering and fulfilment should be included in ROI calculations. All of these numbers will eliminate the need to rely on assumptions, which may very well be inaccurate for your business.
An audit of your location or collection of locations will be necessary in order for an accurate ROI estimate to be produced. This can be accomplished by looking at the way in which a location processes its goods as well as operates. This will be less complicated to determine in a single location. When looking at more than one location, it must be considered that each will have its own way of handling operations, as well as having a different layout or format than other locations.
Speak to those Involved in daily Merchandise Handling
Those who work in your store will be the ones who will understand each step of the merchandise handling process, as well as all of the potential challenges which accompany them. After all, they are the ones who are in constant and direct contact with customers.
Resources and Real Costs
An RFID system will only be as good as your understanding of what needs to be improved in your location. This includes everything from the processes you and your employees currently use for inventory management to how many hours are devoted over any given time period to ensure the availability of stock. All of these will impact the bottom line of your business.
The real cost of being out of stock will be another determining factor when trying to accurately forecast just how much ROI your business will realise as the result of implementing and RFID tagging system.
The right RFID system will be the one which allows you to achieve your desired level of merchandise availability and accuracy of the stock you have. You may find that it’s more feasible to install RFID ‘eyes’ above rather than supply each employee with an RFID reader, for example.
The bottom line is that RFID is a business investment. For it to be a valuable one, it must help you in some way to increase both savings and sales.