The advantages and disadvantages of RFID technology in the retail industry

Due to the rapid expansion of retail enterprises, they generally present the characteristics of logistics and distribution, such as multi-variety, small batch, high distribution frequency, multi-distribution points, fast distribution requirements, and the need for perfect information system support, which makes the entire logistics activities more complex. The great extension of the logistics system and the complexity of logistics system planning make it a field that only experts can get involved in. Therefore, with the rapid development of retail enterprises. There is a need to use specialized and personalized logistics services to improve the quality and efficiency of logistics services.

RFID solution

Due to the unique identification method and technical characteristics of RFID, it can bring huge benefits to retailers, suppliers and customers; it enables the supply chain system to track the dynamics of goods more easily and automatically in an efficient way, so that items can be realized Truly automated management. In addition, RFID also provides the retail industry with advanced and convenient data collection methods, convenient customer transactions, efficient operation methods, and fast and insightful decision-making methods that cannot be replaced by barcode technology.

The Application Prospect of RFID in Retail Industry

In recent years, RFID technology has attracted the attention of all walks of life as the focus. For example, manufacturing, transportation, medical, food and other industries have been applied to varying degrees. Then, what about its application in the retail industry? Woolen cloth?

RFID applications in the retail industry mainly focus on five aspects: supply chain management, inventory management, in-store merchandise management, customer relationship management and security management.

1) Supply chain management is the earliest use of RFID in the retail industry, and it is also an area where RFID is currently used the most.

2) In-store commodity management At present, most department stores and supermarkets focus on some easily stolen or valuable commodities.

3) The main contents of RFID applications in inventory management include using fixed or mobile readers to scan the goods entering and leaving the warehouse and warehouse shelves, improving the work efficiency of goods in and out, picking and stocking; improving the efficiency of inventory to upstream suppliers. Visibility, timely supply; connected with the in-store shelf automatic replenishment system, timely replenishment, and inventory optimization.

4) The application of RFID in customer management mainly focuses on two aspects: self-checkout and improvement of customer’s in-store shopping experience.

5) The application of RFID in security management mainly focuses on commodity anti-theft, followed by replacing the original password with RFID identification code to control the use rights of IT equipment or the access rights of some important departments.

Inventory management

Through the RFID tags of commodity items, managers can make optimal adjustments to commodity prices in real time, effectively analyze commodity sales status and demand forecasts, commodity automatic replenishment, purchase control, etc. Mainly oriented inventory management process.

Self-service management

Through the cooperation of RFID tags and sensors, retailers can update the sales information of commodities in real time, monitor the quantity, arrangement and dynamics of commodities on the shelves, so as to replenish the commodities on the shelves, so as to achieve the consistency of planning and execution timeliness.

Customer service delivery

The application of RFID on the customer side includes interactive convenience services such as kiosk (kiosk) application, mobile device and remote POS system connection, so as to improve customer satisfaction, such as: automatic consumption records when consumers take down the goods , Through the self-service checkout counter, checkout by credit card, saving the time of scanning each item at checkout; in addition, through the radio frequency technology, plus the digital display set in each corner The device can transmit the relevant commodity marketing information such as the commodities purchased by consumers and the personal shopping records of consumers in real time, so as to achieve the ultimate benefit of personalized marketing.

Shortage management

Human errors, including incorrect returns processes, sales scanning errors, mispricing, and incorrect inventory counts, can result in losses for retailers, and losses due to shortages can be as high as 1.5% of revenue Therefore, in SBT, the issue of rights and responsibilities of shortage goods has formed a major obstacle to cooperation between suppliers and retailers, and RFID can track the characteristics of commodity movement records, which is of great help and solves the problem of commodity management in SBT operations. issue.

Anti-counterfeiting and traceability of RFID in retail industry

The principle of anti-counterfeiting is to write the product identification number (ID), that is, the anti-counterfeiting code, in the RFID chip. This ID is unique in all links such as production and sales; the chip is made into a label, and the electronic label is attached to the product to make it. become an integral part of the commodity. When the electronic label is forced to be separated from the commodity, the integrity of the commodity is destroyed, the commodity is considered to have been consumed, and the anti-counterfeiting ends.

Food safety incidents such as poisonous milk powder, leptin, gutter oil, dyed steamed buns, etc. have caused uproar, and RFID food traceability is the most effective technical means to ensure food safety. Using RFID as an information carrier, and relying on technologies such as network communication, system integration and database application, it has established a set of information platforms for government supervision, sales and other links. Build a whole-process traceability system to realize the records of every link of the entire industrial chain from production, processing, storage, transportation, to terminal consumption.

  • No mechanical wear, anti-wear;
  • The physical interface of the reader ensures its own security;
  • Label password protection is improved;
  • There is a mutual authentication process between the reader and the tag.

Application of RFID in Supply Chain Management

Each supplier has an electronic label, and uses this label (which is unique) to perform applications such as settlement, dispatch, and inquiry; in inventory management, the system can automatically identify the inventory of the required goods according to the electronic label on each package. Information such as area, inventory quantity, inbound and outbound quantity and time; in terms of member management, members can be identified quickly and effectively to better provide targeted services to customers entering the store; in cashier management, the cashier system can In the case of intervention, the electronic label on the commodity is automatically identified, the total price of the commodity is automatically calculated, and the bill is automatically printed when the customer arrives at the cashier area; in terms of commodity safety management, the monitoring device automatically monitors the unauthorized electronic label in the area. If there is any abnormality in the moving situation, the sound and light alarm device can be activated.

Advantages: high degree of work automation, fast processing speed, and no need for too much human intervention in the processing process.

Disadvantages: The cost of electronic tags is expensive. Under the circumstance that the cost of electronic tags cannot be reduced, the application prospect of RFID in the small and medium-sized retail industry is not optimistic. However, due to its obvious advantages, it will be a development direction in the future.

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