How to optimize logistics inventory operation management through RFID technology

Retail enterprises generally present logistics distribution characteristics such as multiple varieties of goods, small batches, high distribution frequency, multiple distribution points, fast distribution requirements, and the need for perfect information system support, which makes the entire logistics activity more complicated and the logistics system is greatly extended. The complexity of logistics system planning makes it a field that only experts can venture into.

According to data from the National Bureau of Statistics, the total retail sales of consumer goods in China will reach 44,082.3 billion yuan in 2021, an increase of 12.5% over the previous year; supermarkets, convenience Stores, department stores and other retail formats have all achieved restorative growth. In addition, the online retail sales of domestic physical goods increased by 12.0% year-on-year last year, accounting for 24.5% of the total retail sales of social consumer goods. That may be good news for economists, but many retailers were unprepared for a surge in demand amid the pandemic and are now having a harder time coping with the growing popularity of online shopping and mobile spending.

According to the 2021 Consumer Research Report - Volume 2, nearly three-quarters of retail executives are under pressure to spend less on online orders, while many are trying to prevent stock-outs. They know they have to do more to regain control of inventory management if they are to protect their brand reputation, maintain their customer base, and maintain profit margins during a period of rapid growth. If a retailer can’t deliver what consumers want, when they want it, in the way they want, consumers can simply walk out of the store or close the online ordering page.

A number of different technologies, including RFID technology, bar coding, intelligent automation and prescriptive analytics, can be used to improve visibility into inventory location and performance. Built-in scanners are a common configuration on enterprise-class mobile computers today and are often used in retail stores and warehouse operations. This feature makes it easy for store associates to scan barcodes to check prices, confirm that the correct item has been picked up for the customer or to report current shelf inventory. However, barcode scanning is no longer a relatively efficient way to manage inventory, especially when stores and warehouses are understaffed or selling faster than replenishing, which is now an almost daily occurrence.

If the barcode is on the bottom or back of the package, the clerk needs to pick up the product and scan it. With multiple rows of products stacked on the shelves, store associates have to move each item for accurate counting, and items that are stored further down may be missed. Considering that most retailers have hundreds of thousands of items in stock, it is too laborious to use only barcodes to track inventory on shelves and warehouses. Today, RFID tags are as common as barcodes, as many manufacturers tag items at source.

Retailers can configure RFID systems in a number of ways to automatically read thousands of tagged thing. Unlike barcode scanners, fixed and handheld RFID Readers do not need to face the label on the package, but only need to be close to the labeled item to collect real-time data and share it with relevant parties.

Although RFID technology may have been complex and costly for most retailers in the past, the combination of new cloud-based software and RFID handsets has made this advanced tracking technology available to major retailers. Even small retailers that still use pen and paper to record inventory changes will be able to read Take and make full use of RFID tags now.

It is not always reasonable to install fixed RFID readers in retail stores to monitor shelf inventory. In many cases, RFID handheld terminals are often sufficient since store associates can quickly take a week around the store to capture tag data. Most store associates would be more averse to carrying two devices with them all day, and IT teams are not happy about adding more devices to the management list. The RFID Handheld is an excellent and simple solution that can automatically read thousands of RFID tags with the pull of a trigger, in addition to acting as a barcode scanner.

Technically, they're plug-and-play accessories that instantly convert employees' mobile devices into RFID handsets, with no cables or specialized training required to use them. After the RFID handheld terminal is connected to the mobile data, the employee only needs to point the device in the general direction of the inventory to be counted, and then pull the "scan" trigger. Taking the RFID products of IFASTIOT Technology as an example, the data of up to thousands of tags per second will be immediately transmitted to the equipment and the inventory management system synchronized with it. If calculated at this speed, it will take less than 15 minutes for the store to More than one million different items in warehouses, warehouses and warehouses can be accurately counted. Counting or locating this much inventory could take hours or days without the help of RFID technology, and the results are less reliable.

Purchasing teams are alerted when stock runs out, allowing them to place additional orders before stock is completely depleted. Sales executives can see when inventory is selling faster than expected and when it is becoming stagnant, so they can adjust shelf displays, price promotions and replenishment pace. Store associates can confirm shelf counts and find rear stock locations in seconds, not minutes or hours.

At the same time, inventory systems will be instant and accurate, so consumers can log on to their computers or mobile devices to see if their favorite items are still in stock before heading to the store. If a certain product is out of stock in a store that consumers frequent, but is available in another store just a few kilometers away, they know which store to go to.

It can be seen that equipping employees with RFID handsets to achieve more frequent inventory checks will help the long-term development of retail companies and supply chains.

Like other hardware-dependent solutions, RFID readers only play a part in improving operations. Retailers also need to ensure that tag data is routed to the correct people and systems and analyzed in the specific context of each application.

As e-commerce orders grow and consumers return to brick-and-mortar stores, retailers need to manage more inventory across multiple channels. This seems to feel like a major shift is needed to keep up. However, solutions as simple as RFID handsets are just proof that retailers can improve inventory visibility, employee productivity and customer satisfaction without major investments, they just need to add the right components to employees' mobile computers can be achieved.

RFID applications in the Retail Industry mainly focus on five aspects: supply chain management, inventory management, in-store commodity management, customer relationship management and security management.

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

2. The main content of RFID application in inventory management is to scan the goods entering and exiting the warehouse and on the warehouse shelves through RFID reading and writing equipment, so as to improve the work efficiency of goods entering and exiting, picking and inventorying; to improve the visibility of inventory to upstream suppliers Sexuality, timely supply; connected with the automatic replenishment system of the store shelf, timely replenishment, so that the inventory can be optimized.

3. In-store product management At present, most department stores and supermarkets focus on some easy-to-steal or valuable products.

4. The application of RFID in security management is mainly focused on the anti-theft of goods, followed by the use of RFID tags to replace the original password to control the right to use IT equipment or the right to access certain important departments.

5. RFID applications in customer management are mainly focused on self-checkout and improving customers' in-store shopping experience.