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RFID for Retail

More Retail Stores Rollout RFID

Auto-id has long been used to track and identify parts for car and truck assembly. The vehicle assembly industry realized early on the value of bar codes and recently RFID to ensure the right parts are in stock, ordered just in time and at station when required for the assembly process. Many auto parts are painted and technology was slow to come to these components of the process.

The paint processes for parts manufacturing has always be a challenge when attempting to adopt new technology. Paint and chemicals were always the enemy when using identification markings such as bar codes. Chemicals would remove bar codes and paint would cover them. And then there was the temperature, 215 °C or 419 °F. Along came RFID. RFID was a natural for paint applications. Specially constructed tags can withstand the high temperatures of the ovens and can also withstand the impact of preparatory chemicals. RFID, unlike bar codes do not require line of sight or visual readability. An RFID tag continues to work even when covered with multiple coats of paint. It is no wonder that RFID has moved into the paint shops around the world.

More retail operations are rolling out item-level RFID tagging. After many pilot programs the hard numbers are in, RFID reduces shrinkage, improves stock levels and decrease employee turnover. Studies show that same class stores using RFID are outperforming those not using the technology. In some recently documented cases RFID equipped stores are outperforming non-RFID stores two to one. Store operators that have been using RFID attribute improved stock levels and store performance to the technology. Many of these operators are reporting that the ROI on RFID is about six months.

The bottom line savings come from better inventory management and reduced shrinkage. at those locations. Inventory management isn’t just about stocking the right levels and sizes of different SKUs on the floor. RFID lets the store know if the items are in the right place. A store that is better organized sells more product, has less stock outs and encounters less shrinkage. RFID technology helps retailers get and stay organized.

A retail RFID solution requires hardware, tags and readers, and software. The software most retailers would require would validate shipments, transfer product between stores, tracking inventory by store, manage fulfillment operations, manage back room and sales floor movement and tie into existing Point of sales systems. GAO RFID has the industry’s largest selection of tags and readers to choose from and LocateWare™ software that can quickly turn on RFID for a retail operation.

RFID alone has not replaced traditional electronic article surveillance as a shrinkage solution. RFID tags are too easily masked and can circumvent most attempts to use RFID as an external theft deterrent. It has been reported that stores using a combination of EAS and RFID item level tagging have reduced shrinkage by as much as 75%.

If you have a retail operation that's ready for RFID then contact a GAO RFID representative. We will advise you on which technology is the best for your process and requirements. Please contact us at sales@gaorfid.com, send us an inquiry, or call us at 1-877-585-9555 or 416-292-0038, ext 601.

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