Though the benefits of RFID are plentiful — including inventory record accuracy, display compliance, and futuristic uses of technology to improve the customer experience — Billings said retailers must ask the question: Is RFID the right fit for the company?
Metals and liquids still pose a challenge for RFID tags and while there are workarounds, this is still something to consider.
So, what justifies a ROI for RFID? Is it the checkout experience? Auto replenishment from back to front? Overall customer experience?
Billings recognized that while retailers know their business, some of these benefits can be hard to quantify. In a breakdown of costs, Billings identified $.04–.08 per tag, and “the further up the supply chain you tag, the cheaper it is.”
Investors also need to consider hardware maintenance as well as ongoing software licenses and the cost per device. Perhaps the hardest thing for retailers are the process changes, like barcodes.
With RFID auditing 100% of the items shipped with a full system integration, it’s no wonder that RFID increases sales between 4% and 8%. Using this real-time data is vital in moving forward, according to Billings.
As such, Billings had a thrilling announcement: “We are excited about our partnership with Frequentiel, and we are looking forward to helping retailers with their RFID needs.”
Datascan and Frequentiel, Europe’s premier RFID company, can help retailers along the RFID path, help with ROI calculations, and more. Find more information about RFID on Datascan’s website or connect with Herb Billings on LinkedIn.
