Monday, October 6, 2014

Empty Shelves -- Causing Customer Frustration & Retail Losses

Like me, many of you probably don't like going to a store and finding out the item that you are looking for isn't on the shelf. As much as we may blame the store, they wish they could always have the proper amount of inventory on hand to supply the demand so we can spend our money at their store. So how does this problem get fixed? By spending some money and updating the technology in place this could soon be a problem no more at retail stores because of RFID.

RFID, radio frequency identification, is something that has been around for awhile now. This is usually used to track shipments instead of bar codes. This works because it wirelessly sends a signal out that can be tracked in an ERP (Enterprise Resource Planning) system, or by a hand held device scanner. The tags contain an intenna that sends out necessary information such as location, and can include other options subject to demand.

Photo Courtesy : barcodesinc.com

Now you may be wondering, how does this help me shop? Here is how...

It has been going through testing, but the RFID tags will soon be in most stores. If the store decides to use RFID they can place this on the price tag of the clothes or items that it carries. Doing so will allow the store to track exactly what they have in their inventory easier and more accuratley than a bar code will allow. In a recent test Bloomingdales used this product with clothes at their stores and only put one size of each clothing option on the floor. This allowed them to reduce their inventory, and track the item from when it got to their store, when it went to the shelf, and when it went home with you, the customer.

As technology has grown every store is interested in getting as much data that will be useful to them as they can. Implementing RFID tags at their stores will allow them to know what is on their shelves and what is in inventory more accurately than ever before. This will also help them re-order a particular product at the optimal re-order point meaning when you go to a store, the product will be there.

Of course this all has costs, however the cost of the technology is growing cheaper, and customer satisfaction is always a high priority. If the stores do implement this technology going forward, look to go to stores and get the item you desire. 

You can learn more about RFID tags with the links below:
Forbes
RFID Journal


Thanks for reading!

Andrew Niedert

5 comments:

  1. Andrew, this is a great post and it was very informative. I had a little knowledge about RFID tags before reading, but this definitely gave me a better idea. I took Matthew's class last spring and absolutely loved it! Keep up the good work and feel free to check out my blog: http://environmentalfashionistamk.blogspot.com

    ReplyDelete
    Replies
    1. Thanks Megan! I'm glad the post was able to give you a better idea about RFID tags. I will be sure to check out your blog! Thanks again for reading it and I hope you check out my future posts.

      Delete
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