RFID is typically deployed into an organization’s operations when there is a need to track something. In retail, there is always a need to track inventory and ensure high-value items are secure. In recent years, retailers have taken to adding RFID in order to reduce overall retail theft. An RFID retail security system a number of benefits for stores and can help them prevent theft and shrink. It also helps retailers reduce costs and boost sales throughout their supply chain.
Inventory accuracy is one of the biggest challenges facing retailers today. With RFID, store managers can instantly scan shipments, find items and automate reorders at safety stock levels.
Prevents Theft
RFID technology can be used to prevent theft in a retail environment. These systems use plastic security tags that clip a radio frequency identification chip directly onto an item. Then, when the item is passed near a detector, it triggers an alarm and alerts store staff.
Unlike traditional barcodes that can easily be blocked by booster bags, RFID tags are read at a rate of 100-200 per minute and can detect a range of items from a single location.
By combining this with electronic article surveillance (EAS), retailers can track stolen merchandise immediately after it’s been taken. This helps them identify where and when it went missing, which allows for more accurate inventory updates.
RFID also enables more efficient inventory management by automating cycle counts and re-orders when safety stock levels are met. This can save time and money for both employees and customers. Additionally, it increases security and prevents product shrinkage. It’s also a great way to protect brand integrity and build trust with customers.
Free RFID Consultation
Have you been handed an RFID mandate? Let us help! We’ve been working with companies to help them leverage RFID implementation mandates, and identify ways they can benefit from RFID. Key solutions include:
- Tracking and tracing inventory and goods.
- Preventing items from unauthorized usage.
- Ensuring equipment is not taken off premises.
- Check where items are stored for quick finding.
Reduces Shrink
RFID technology not only prevents shrink, it also gives retailers item-level insights to help reduce it. It’s a powerful tool to improve inventory accuracy and meet customer expectations of omnichannel fulfillment, while also boosting revenue in the process.
It can inform policy and process changes, making it easier for associates to interrupt theft and fraud. This helps improve loss prevention measures by identifying shoplifting trends and building cases against perpetrators with authorities.
When paired with sales and video data, an RFID system can see which items were stolen, when they were stolen, and where they exited the store. This can help you retrace shoplifting events to identify trends and create new anti-theft processes.
While traditional electronic article surveillance (EAS) systems are effective at triggering alarms during theft, they can be false-alarming and can lead to a large number of alarms going off over time. This is why many retailers choose to deploy an RFID system. It can provide a lower rate of false-alarms and is cheaper than EAS.
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RFID Improves Inventory Accuracy
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RFID Reduces Cycle Count Time by
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Retail RFID Adoption Rate in North America
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Price of RFID Tags Have Gone Down
Sources: GS1 US / Loss Prevention Media / McKinsey
Detects Theft
An RFID retail security system can help detect theft before it occurs. For example, if someone takes clothes into a fitting room and removes the tag, a store associate is immediately alerted and can then take action.
In addition, an RFID system can also help locate items in hard-to-reach areas of the store. This helps ensure the safety of shoppers and employees alike and decreases inventory shrink.
A retail security system can also increase the amount of insight retailers have into their supply chain processes, which can improve efficiencies and ROI. This includes tracking product from the source to its destination, recording shipping details, quality information, batch size, and more.
Retailers are under pressure to address the increased costs and risks of competition, ecommerce, and supply chain interruptions. In addition, they need to lower shoplifting and employee fraud to reduce losses and maintain brand integrity.
Boosts Security
RFID technology boosts security in a retail environment by enabling self-checkout and protecting against shoplifting. These systems automatically sound alarms when customers pass near a reader, triggering an alert that an item is unpaid for.
The system also helps retailers track theft and fraudulent returns by combining movement tracking data with video and sales data. This can help you identify trends and build a case against a shoplifter with authorities.
As a result, this improves the overall customer experience in stores and enhances customer loyalty. In addition, it reduces administrative errors and increases store efficiency.
One of the most significant benefits of RFID is that it can significantly improve inventory accuracy, especially at each location. This allows retailers to proactively order products in advance, ensuring they have always-updated inventory for each SKU.
Adding a RFID Retail Security System to Your Supply Chain
In order to add RFID to your retail operations, you need the hardware – RFID tags, readers, printers, etc. And to enforce RFID tracking, a software system like Edgefinity IoT is vital. CYBRA’s RFID tracking application allows users to visually see where inventory is in real-time. High-value inventory can be checked in and checked out and tracked via reports. Wherever your items go, you can keep a close watch on them. Request a free demo today to see how Edgefinity IoT can work in your organization’s supply chain.
