Five Advantages of RFID Tags for Retail

RFID (Radio Frequency Identification) tags were initially develop for use in the military and other high-risk environments. They have now been adopt by various retail and commercial businesses to improve their business practices. RFID tag technology can track, identify and track inventory. It also helps companies prevent fraud and enhance data security. In essence, RFID tags provide an extensive range of information about the location and activity of people and products.

Retailers have also adopted RFID tagging

Retailers have also adopted RFID tagging to improve their supply chain management. RFID tags can be attached to the goods or containers. So that the retailer can keep track of where they are currently located in the distribution process. By doing this, retailers can determine when they are close to their customers. So that they can increase their customer service or replenishment efforts accordingly. This approach is particularly useful for smaller retail chains which may not be able to afford or need high-tracking systems.

Large retail chains

Large retail chains can also benefit from RFID tagging because it enables them to improve their supply chain visibility. Supply chain visibility is an important business objective. Because it means that companies can better forecast their costs or operational activities. For example, if a retailer’s costs are underestimated in one area of the supply chain, then the company will have to revise its overall estimates in other areas since the original estimate was over-estimated. On the other hand, with detailed RFID tags and detailed distribution-centric distribution processes, a retailer can more easily determine where the supply needs to be made.

RFID tags and tracking can help retailers

Another way in which RFID tags and tracking can help retailers is in terms of reducing fraud. Tracking reduces the likelihood of stolen merchandise entering the hands of unknowing customers. Since RFID tags are attach to the goods or containers before they are deliver to customers, retailers can monitor their goods and prevent the entry of fake items. In addition, tracking can also help reduce losses associated with unloading cargo.


In terms of protecting inventory from theft, a third advantage of RFID tagging is its usefulness for controlling logistics. According to research, controlling logistics has become an increasing challenge for retailers. One of the reasons for this is the rise of internet shopping. Online shopping generates an enormous amount of traffic to retailers’ stores, and many of these shoppers don’t bother checking out the actual storefront. However, a large chunk of these shoppers’ time is spent online, and it is through online purchases that retailers gain the most profit margin.

The fourth advantage of RFID tagging is to enable a better customer experience.

The fourth advantage of RFID tagging is to enable a better customer experience. With RFID tags, a retailer can prevent the accidental spilling of drinkware or food on tableware. Even though a retailer might be attentive enough to notice when drinks are spilling, it might be impossible to keep track of every single paper towel or glass that has been use in a restaurant. With RFID technology, however, a customer will know instantly if a particular item has been misplacing or if it has already been used. As such, a better customer experience has been achieve, which boosts sales figures.

The fifth advantage of using RFID

The fifth advantage of using RFID tags for tracking retail inventory is their usefulness when it comes to stock taking. Retailers can use RFID readers to scan products being display on a shelf and then determine whether the items are still available. This allows the retailer to save time when looking for new merchandise and eliminates the need to manually check for availability. In turn, this improves profitability since the extra time that is saved can be invest back into production.


A final advantage of RFID handheld devices is their utility in the supply chain. Suppliers can use them to monitor their products as they are deliver to their customers. The handheld devices can detect whether a product has moved from its original location, allowing the supplier to re-plan transportation routes and make other informed decisions. In this way, the supply chain can run smoothly and with significantly reduced lead times.

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