The modern supply chain runs on RFID

The role of radio frequency identification (RFID) technology in today’s supply chain is critical. Whether to enhance business efficiency or mitigate losses, RFID technology can significantly streamline retail supply chain operations through enhanced inventory visibility.

RFID-powered real-time visibility holds the supply chain together

Supply chain operations — including inventory procurement, storage, distribution, and transportation – rely heavily on accurate inventory data. Without real-time visibility into their stock, retailers are unable to make informed, timely inventory decisions. If they do not know, in real-time, which products are in high demand or have sold out, they can’t restock quickly enough. This can lead to missed sales opportunities and reduced customer satisfaction, ultimately sacrificing business profitability.

RFID technology bridges the gap between retailers and their inventory, enabling real-time inventory tracking as it moves through the supply chain. As a result, retailers can precisely understand where exactly their products are, identify any red spots where items go missing, and take necessary action to mitigate losses.

Additionally, the technology allows retailers to replace their manual inventory counting tasks with automated operations. Equipped with handheld RFID readers, products can be instantly scanned in bulk, at the item level. This accelerates both inventory audits and order processing. All this leads to a seamless supply chain where retailers have clear visibility of their inventory and can make effective decisions, faster. RFID, in turn, enables retailers to channel the valuable time of their staff towards more strategic, value-driven tasks. Employees can focus more time on providing high-quality customer experiences, ensuring in-store shoppers are assisted in the best possible way. 

Ultimately, this allows retailers to maintain more sustainable supply chain practices, reducing waste and making their business operations more environmentally friendly. Retailers can minimise excess production, reduce emissions from unnecessary transportation and storage, and lower the risk of unsold goods ending up in landfill sites.

Beyond inventory tracking 

While RFID’s role in inventory management is critical, the technology offers much more than just enhanced inventory tracking; it also provides critical insights for demand forecasting. Retailers can use data provided by RFID tags to better understand purchasing trends, and predict future demand with greater precision. This allows them to adjust their procurement strategies accordingly, identify bottlenecks, predict demand, and optimise their inventory levels ahead of time. 

Undoubtedly, retailers can significantly reduce the risk of supply chain disruptions using modern innovations. However, there are always chances of unexpected delays. Real-time visibility provided by RFID also enables retailers to take proactive measures to minimise the impact of such unexpected disruptions and drive business continuity. 

The role of RFID has evolved over the years. From being a ‘nice to have’ technology in the past, RFID has emerged as an essential part of a supply chain ecosystem. Retailers must look for innovative ways to integrate the tech into their operations.