Tracking inventory efficiently is a top benefit of RFID tags. With better inventory control, RFID gives retailers more control over their profit and loss margins. But control over these margins goes beyond tracking inventory. RFID tags let retail management track:
- Items taken from shelves and racks: With GPS-enabled tags, retailers know where items are at any time—including items that are in fitting rooms and items randomly dropped off in other locations. That's especially valuable for perishable items taken from refrigerated cases or small items like nuts and bolts dropped in the wrong bin at the hardware store.
- Theft: Shoplifting is a serious problem for a retailer's profit/loss margin. RFID tags create real-time alerts for theft, and the data sent to the software offers valuable information, such as the time of day the theft occurred and the items stolen. This information can also be used to help in prosecution.
RFID technology can take retail into the age of digital transformation. Digital enhancements that improve supply chain and inventory management only improve the customer's shopping experience, and in the end, it improves the retailer's overall profit and loss margin.
The author of this content is a paid contributor for Verizon.