A new white paper sponsored by Tyco Retail Solutions called the “ROI for RFID in Retail” identifies inventory accuracy as the primary driver for deploying RFID solutions at the retail level. The study, which polled major retail brands, also named loss prevention, omni-channel and consumer engagement as the other major driving factors behind retail RFID adoption.
The paper examines how the placement of billions of RFID tags on items by retailers like Macy’s, Kohl’s, American Apparel, Marks & Spencer and others has resulted in sizable operational, financial, and customer satisfaction advantages over retailers not using RFID.
For example, RFID enabled cycle counting to be conducted about 25 times faster than traditional manual bar code scanning. Frequent and highly accurate cycle counting improved inventory accuracy by typically 20-30 percent, allowing many retailers to achieve 99 percent inventory accuracy.