Q & A: RFID Rollout

 

Why adopt RFID?

RFID technology will allow suppliers to significantly improve the precision of your on-hand inventory throughout the year by enabling frequent merchandise counts. Test data shows that a more precise inventory will generate increased sales because you can ensure products are in stock when the customer is shopping.

What are the benefits of item level tagging?


Item-level tagging can offer a quick return on investment (ROI). How?
- It reduces out of stocks (OOS)—which costs the global retail market $120 billion each year
- It reduces inventory shrinkage (i.e., theft from staff or shoppers)
- It limits excess inventory & improves inventory visibility
- Offers improved customer service
- Item level tagging reduces receiving time by 90 percent and shrinkage by 20 to 50 percent.

What do all these numbers mean?


Retailers recognize that it would take unlimited amounts of stock to satisfy 100% of their customer demand. Therefore, out-of-stocks can’t be eliminated. Research shows that 22% or more of out-of-stocks are the result of poor execution—failure to accurately replenish shelves from backroom stocks or distribution centers. Using RFID to eliminate poor execution has led to 2% to 8% net sales increase without increasing stock levels.

How can vendors support RFID?


Vendors can affix an EPC (Electronic Product Code) RFID tag to merchandise. Ideally, RFID can be incorporated into an existing tag. What is the timetable for adoption to RFID? Adoption of RFID is different for every retailer. While some expect to be fully implemented by late 2012, some have later timetables. I quote Frank Cassara, senior vice president & director of retail operations, JCPenney, when he says, “get on now or get on later, but get on.”

What do I do next?

CYBRA can help identify the best RFID solution from pilots to full deployments. Please contact CYBRA to discuss your solution, or to arrange an appointment for a consultation.

Who should I call if I have further questions?
Call CYBRA at 1-800-CYBRA-88

About CYBRA Corporation


CYBRA Corporation is a leader in bar code and RFID technology serving customers in a wide range of industries. Thousands of organizations worldwide rely on CYBRA’s innovative solutions daily as the Auto-ID engine underlying their critical applications for retail compliance, shipping, inventory, warehouse management, in-plant printing and print and apply automation.
A GS1 Solution Provider and an IBM Business Partner since 1989, CYBRA develops solutions in partnership with Alien T

 

echnologies, Avery Dennison, Impinj, Motorola, Psion Teklogix, SATO, Zebra Technologies, and other leading printer, reader, and RFID tag manufacturers. CYBRA is represented by a network of value added resellers throughout the United States and sales and support offices overseas.

CYBRA software solutions run on all major computing platforms including IBM Power Systems (System i, iSeries, AS/400, AIX) as well as Linux, Unix, and Microsoft Windows