Adoption of RFID is increasing, as retailers have come to understand its benefits in the areas of inventory accuracy and online fulfillment. This rich data source has many other applications as well, such as in support of a dynamic pricing structure.
In a 15-month study at Macy’s, for example, monthly cycle counts taken by hand scanners resulted in gross unit variance being maintained in a 2–4.5 percent range, versus a 20–30 percent annual distortion due to only once-a-year physical counts. Online fulfillment is another major benefit associated with RFID, by making single merchandise units visible systemwide due to the ability to locate RFID-enabled merchandise.
- Strategic planning.
- Establishing measurement models.
- Quantify impact.
- Data structure.
- Analytic modeling, interpretation, and creating actionable insights.
See the PRI Working Paper “Quantifiable Benefits and Analytical Application of RFID Data” here. You may also download the PRI Research Articles, “RFID Challenges and Opportunities” and “Insights into Deploying RFID Systems in Retail” here.