5 RFID STATISTICS BRAND OWNERS SHOULD KNOW
Retailers are moving quickly in adopting RFID. That affects brand owners and manufacturers, too.
You probably already know RFID technology can improve your inventory accuracy up to 99.99%. However, to reap the benefits of a strong, accurate supply chain, retail brand owners need to be convinced that RFID is fully worth the investment. Because simply encoding your items with RFID tags is not what will get the cost saving benefits you’re looking for.
RFID is neither an expense nor some magical tool. It’s an investment that can cut costs out of your supply chain if implemented correctly. If you have been hesitant to implement RFID tagging your supply chain, consider the following statistics.
5 RFID Statistics For Brand Owners
Retail manufacturers & distributors who implement RFID technology into their supply chain see an 80% improvement in shipping/picking accuracy.
One of the biggest benefits for manufacturers, as well as managers of warehouses and distribution centers is the improvement in shipping and picking accuracy. This advantage directly impacts your wallet. When we talk to manufacturers and distributors, a chief concern they have is minimizing shipping errors in order to mitigate chargeback penalties.
Chargebacks can cost thousands of dollars. With the right combination of RFID hardware and software, you can verify outbound shipments at incredibly high rates. By minimizing chargebacks, RFID adoption can quickly pay for itself.
Retail manufacturers & distributors who implement RFID technology into their supply chain see a 90% Improvement in receiving time.
By automating your receiving processes with RFID, the time and energy required for receiving goes down significantly. Not surprisingly then, receiving costs go down as well. Manually inputting data, scanning every barcode or checking inbound items is a major time suck. RFID alleviates these constraints. Scanning the GS1-128 barcode does not confirm whether or not the correct product is in the carton and whether it has concealed shorts. Operations must audit a fair number of cartons to see if in fact the contents match the purchase order to the factory.
Fixed RFID readers read the tags of every single item in the carton. The system compares the ASN (Advance Ship Notice) from the factory and confirms that each carton contains exactly what was ordered. This validation is an audit of every single carton arriving from overseas and it happens in real time without any misreads and without slowing down the receiving line. For one customer whose goods are tagged at source, fixed RFID readers on inbound conveyors read the tags of every single item in the carton.
With merchandise tagged with RFID, retail brand owners can increase inventory count rates from 200 to 12,000+ items per hour.
A small team armed with mobile RFID readers can count inventory in a fraction of the time compared to traditional barcode based methods. Because it is easier and faster to count, you can cycle count more often with greater accuracy. RFID tags on your items are way more effective than barcode tags. It’s just that simple.
So, what does that do for you? No more shutting down your warehouse to do inventory. No more bogging down your team when it’s time to do inventory. Now, your employees can be elsewhere doing other important things. It’s efficiency on a whole new level.
Once you integrate RFID into your brand’s supply chain, you will see improvements in visibility, shipping accuracy, speedups in put away, and so much more. RFID is a compounding solution that can take your inventory management initiatives to the next level.
Over 7 billion RFID tags will be in use within the retail industry in 2017 alone.
In just the past few years, the adoption of RFID has taken off, becoming vital in major retailers supply chains. From the dock door to the sales floor, RFID tags are on more merchandise than ever.
Retailers are adding product categories and rapidly expanding their RFID compliance mandates. In short, it’s full speed ahead. 7 billion RFID tags will be in use within the retail industry this year. That is triple the amount in 2014. In just a few years the retail industry will look extremely different. Big data, online shopping, and changing trends in how consumers shop are driving immense changes in retail.
97% of retailers plan to implement RFID technology into their supply chains.
Over 90% of retailers are currently tagging at least some part of their merchandise. Chances are some of your inventory is already tagged or will be very soon. Now is a perfect time to start with a simple pilot project to see the benefits of RFID.
The benefits of RFID are being reaped by brands more and more every day. According to U.S. and Canadian results from a new global study of 1,378 warehouse and IT professionals conducted in October 2015 by Zebra Technologies, 97% of respondents are currently or plan to be have their warehouses RFID enabled by 2020. 41% percent of respondents have an RFID system in their warehouse, and 56% plan to be RFID-enabled by 2020.