RFID Technology in Retail and Inventory Management

As the rapid expansion of retail enterprises, it generally presents the characteristics of logistics delivery, such as multi variety, small quantity, high delivery frequency, multiple delivery points, fast distribution requirements and the need for perfect information system support, which makes the whole logistics activities more complex and the logistics system greatly extended, The complexity of logistics system planning makes it a field that only experts can set foot in. Therefore, with the rapid development of retail enterprises. There is a need to improve the quality and efficiency of logistics services by using professional and personalized logistics services.

RFID Technology Solution

Because of the unique identification mode and technical characteristics of RFID tags, it can bring great benefits to retailers, suppliers and customers; In an efficient way, it makes the supply chain system more simple and more automatic to track the dynamic of goods, so that the real automatic management of goods can be realized. In addition, RFID technology also provides the retail industry with advanced and convenient data collection methods, convenient customer transactions, efficient operation methods, fast and insightful decision-making means and other advantages that barcode technology can not replace.

Application prospect of RFID technology in retail industry

In recent years, RFID technology has attracted the attention of all walks of life, for example, manufacturing, transportation, medical, food and other industries have different degrees of application, then, how about its application in the retail industry?

RFID applications in retail industry mainly focus on supply chain management, inventory management, in store commodity management, customer relationship management and security management.

1) Supply chain management is the first to use RFID technology in retail industry, and it is also the most widely used field.

2) At present, most department stores and supermarkets focus on some easy to steal or valuable goods.

3) The main devices of RFID application in inventory management includes using fixed or mobile reader to scan the goods in and out of the warehouse and on the shelf of the warehouse, so as to improve the work efficiency of goods in and out, picking and inventory; Improve the visibility of inventory to upstream suppliers and supply timely; Connect with the automatic replenishment system in store, replenish goods in time to optimize the inventory.

4) RFID applications in customer management mainly focus on self-checkout and improving shopping experience in store.

5) The application of RFID technology in security management mainly focuses on commodity anti-theft, followed by the replacement of the original password with RFID identification codes to control the right to use it equipment or the access right of some important departments.

Inventory management

Through the RFID tags of commodity items, managers can make the most appropriate adjustment of commodity prices in real time, effectively analyze the sales situation and demand forecast of commodities, automatic replenishment of commodities, purchase control and so on, and then build an inventory management process which is completely consumer demand oriented.

Self-service management

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

Customer service delivery

The application of RFID technology in the customer end includes self-kiosk application, mobile devices, remote POS system connection and other interactive convenience services, so as to improve consumer satisfaction. For example, when consumers take down the goods, they can automatically record their consumption, through the self-service checkout counter, they can check out by credit card, Save the time of scanning each item when checking out; In addition, through the wireless radio frequency technology and the digital display set in each corner, it 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 final benefits of personalized marketing.

Shortage management

Human errors, including incorrect return process, wrong sales scanning, wrong pricing and incorrect inventory checking, may cause the loss of retailers. At the same time, the loss caused by the shortage of goods may be as high as 1.5% of the revenue. Therefore, in SBT, the rights and responsibilities of the shortage of goods form a major obstacle for the cooperation between suppliers and retailers, RFID can track the moving records of goods, which is helpful to solve the problem of commodity management in SBT.

Anti-counterfeiting and traceability of RFID technology in retail industry

The principle of anti-counterfeiting is to write the product identification number (ID), which is the anti-counterfeiting code, in the RFID chip. This ID is unique in all steps of production and sales; The chip is made into a tag, and the electronic tag is attached to the commodity, making it an integral part of the commodity. When the electronic tag 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 is over.

Food safety incidents such as poisonous milk powder, ractopamine, gutter oil and dyed steamed bread are very popular, and RFID technology of food traceability is the most effective technical means to ensure food safety. Using RFID tags as information carrier, and relying on network communication, system integration and database application technology, a set of government supervision, sales and other aspects of information platform is established. Build a whole process traceability system to record every process of the whole industrial chain from processing, storage, transportation to customer consumption.

RFID technology advantage:

1. No mechanical wear, anti-wear;

2. The physical interface of the RFID reader ensures its own security;

3. The protection of tag and password is improved;

4. There is a mutual authentication process between RFID reader and tag.

Application of RFID in supply chain management

Each supplier has an RFID electronic tag, which can be used for settlement, goods transfer, query and other applications; In inventory management, according to the RFID electronic tag on each package, the system can automatically identify the inventory area, inventory quantity, stock in and stock out quantity and time of the required goods; In terms of member management, it can identify members quickly and effectively, so as to provide better targeted service to customers entering the store; In the cash register management, the cash register system can automatically identify the electronic tags on the goods without any intervention, automatically calculate the total price of the goods, and automatically print out the bill when the customers arrive at the cash register; In terms of commodity safety management, the monitoring device automatically monitors the movement of unauthorized electronic tags in the area, and if there is any abnormality, it can start the sound and light alarm device.

Advantages: high degree of automation, processing speed, in the process of processing without too much human intervention.

Disadvantages: the cost of electronic tags is expensive. In the case that the cost of electronic tags can not be reduced, the application prospect of RFID in small and medium-sized retail industry is not optimistic, but because of its obvious advantages, it will be a development direction for a period of time in the future.