Woolworths deploys RFID solution in more than 200 stores in South Africa

Retailer Woolworths will deploy RFID solutions across 217 fashion, beauty and home Stores in South Africa to improve inventory accuracy and in-store replenishment. The solution is designed to bring the retailer closer to its strategic goal of selling more product with less stock, enabling Woolworths to use RFID in the future to prevent losses and improve the supply chain.

It is worth mentioning that the RFID solution will synchronize the latest inventory data with Woolworths’ ERP system, thereby helping the retailer significantly reduce the time spent counting and replenishing items. Store associates can receive replenishment suggestions from the system, allowing them to proactively replenish products rather than relying on manual inventory counts that are often error-prone.

"RFID technology is an important strategic Asset for us and we are considering adding loss prevention measures and supply chain enhancements in the future," Woolworths chief information officer Christie Koorts said in a statement.

So, how does RFID technology assist supply chain management?

1. Establish a visual operating model

It’s not easy to reduce day-to-day operating expenses while dealing with the additional pressure of increased consumer demand. Adopting RFID technology in the supply chain can help in both areas. RFID technology can reduce process operating costs by reducing labor requirements while improving operational visibility.

RFID solutions can help companies increase revenue by generating real-time, accurate and actionable performance data that can help identify additional cost-saving measures and identify where further efficiency improvements may exist.

RFID systems can integrate and automate much of an enterprise's warehousing, transportation and distribution processes. Deploying RFID technology in areas that require renewed focus and improved daily operational performance is the best way to build a resilient, sustainable and cost-effective supply chain.

2. Integrate products and production processes

Integration relies on effective information sharing while communicating changes to the relevant people as they occur. Each process in an integrated supply chain has a checkpoint, and automated methods are used to obtain product information as the product passes through these checkpoints.

RFID technology tracks the progress of products through different steps in the supply channel, making it easier to capture and share information along the way. It helps businesses work with suppliers, track corporate shipping operations, and build a reliable supply chain that runs smoothly around the world. Using RFID technology to integrate the entire supply chain process and the individual products involved, companies can understand any disruptions early and can resolve the problem before it turns into a crisis.

3. Achieve digital transformation of supply chain

Establishing effective control over the entire process from procurement to distribution through RFID is the best way to cut costs and ensure smooth work. The RFID system eliminates the need for companies to guess in daily operations because they can clearly know where the goods have arrived.

Businesses can automate many inventory and replenishment tasks while also setting reminders to keep employees informed of all critical tasks. Companies can monitor product quality through RFID electronic tags and detect damaged goods before they reach customers. RFID technology helps companies integrate back-end processes, product quality management and supply chain tracking to build a strong, effective and reliable network.

RFID technology can reduce associated labor costs in supply chain operations; provide real-time tracking of goods and monitor returned products during repairs; automate inventory processes without line-of-sight product counting; and improve the tracking accuracy of all goods and products in an enterprise.

4. Integrate supply chain operation processes

Product quality, environmental awareness and other factors that influence consumer confidence require you to go beyond simple procurement and delivery tasks. You need to understand your manufacturer's processes and their supply chain, as well as what labor patterns are used in their factories. RFID technology can help you control purchasing and supply partners. You learn how they run their business and avoid any ethical dilemmas.

You can monitor the procurement of raw materials, ensure suppliers are complying with relevant laws, and identify the root cause of problems when they are encountered. The additional considerations of the modern consumer add new risks to supply chain operations. Implementing RFID technology in the supply chain can ensure that companies effectively understand and reduce risks. RFID technology makes the entire operating cycle completely transparent.

Although the use of RFID technology in the supply chain management process does not automatically solve all problems, it does give businesses magical power. In a world plagued by delays, quality issues and dwindling inventory, RFID technology is changing the way supply chain companies deal with major challenges.