Electronic tags (RFID) help the apparel industry to increase the rate of return on investment!
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Using RFID technology, store employees can easily replenish products that are on sale, replenish products that are out of stock, improve the accuracy of product inventory, and quickly process returned products so that they can be used for sale as soon as possible. RFID technology can not only help retailers ensure the availability of goods, but also provide customers with detailed product information. Therefore, when a customer walks into a physical store, he can easily find the clothing he needs.
In order to increase performance and gain market share, physical retail stores have begun to invest in online trading platforms, and online retailers have also begun to consider investing in physical stores. Regardless of the sales platform, RFID is becoming a “must” retail strategy for omni-channel sales. Whether customers choose to pick up the goods in a physical store or choose a 24-hour delivery service, the biggest challenge for retailers is to have accurate real-time inventory. Using RFID technology can help retailers ensure that they find the right products at the right place and at the right time.
Generally speaking, company CEOs are interested in investments with high return on investment. Therefore, it is very critical to obtain an accurate return on investment during the trial phase. To this end, retailers can develop an effective method based on the following 6 steps:
1. Collect and organize internal data
The RFID project needs to involve the purchaser’s sales, procurement, store operations, supply chain, and financial departments at the beginning of the project plan; collect ERP data related to sales, shipments, inventory, and stock-outs. According to industry speculation, the return on investment cannot be determined, and the performance of the store can only be determined by the actual situation of the store.
2. Audit the store
Commodity availability and out-of-stock are closely related to store operations. Don’t think that every store uses the same process to handle deliveries, check inventory, replenish goods, execute online orders, and process returns; because different stores have their own locations and store layouts, each store has its own Different store operation processes. Understanding these different processes will give you an idea of the time it takes to process deliveries and product anti-theft, which will help build the RFID business case.
3. Interview with store staff
Store employees deal with a large number of products every day. They are the frontline employees of the company. They understand the problems of store operations better than anyone. In addition, they are also the people who are in direct contact with customers; when the goods are out of stock, they are also the ones who tell customers this news. Therefore, they are the key factor in advancing this project.
4. Understand the resources of each store
Before starting an RFID project, you should fully understand which business you need to improve, whether it is out-of-stock management, customer order execution, or something else. To do this, you need to understand the existing processes, technology and human resources.
5. Understand the actual loss of out of stock
Providing an accurate ROI forecast for the RFID project will let you know what the daily loss of business is. No one likes to promise their weaknesses, but the more honest you are from the beginning, the better the results of the project will be. When products are out of stock, inaccurate inventory information will allow employees to spend more time looking for products that customers want.
6. Choose the right RFID hardware, software and consumables
Using RFID technology, we can obtain advanced inventory accuracy and shelf availability, and you can also know exactly what kind of hardware, software and consumables you need. Once you have a clear understanding of the human resources of the store, you can know how many handheld RFID devices and fixed readers each store needs.
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