Understanding Real-World ROI for RFID in Retail

If there are lingering doubts about RFID’s value in retail, it’s time to move past them. There are now dozens of proof points that retailers can realize significant improvements in inventory accuracy for selected categories, with apparel leading the way. With RFID, inventory counting can be done faster, more frequently and more accurately than traditional barcode-based methods, leading to significant reductions in out-of-stocks and markdowns with corresponding improvements in both revenue and gross margin.

But not every retail category is a good candidate for RFID. Retailers have limited capital and multiple initiatives to invest in. In order to rank RFID in the portfolio of IT investments retailers are considering they need a framework for understanding if it’s right for them.

In this paper we break down the question by examining the mechanisms that create benefits, the criteria that make categories suitable and examples of results from the field. Significant financial benefits are available now for many retailers meeting these characteristics.


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