ROI of RFID Distribution | MSM Solutions

The ROI of RFID in Distribution

Today many brands are shipping items that contain RFID inlays for compliance. However, very few of these brands are leveraging the full advantages of using RFID in their own supply chain. RFID technology is especially necessary in the apparel, logistics, healthcare and manufacturing industries, as it is frequently used to easily track product, manage inventory levels and even curtail theft.
RFID has several benefits that mid-size companies and large enterprises can take advantage of within their distribution process to ultimately improve their return on investment. Implementing this technology enhances distribution efficiency and facilitates decision-making.

Omni-channel Support

When stores run out of the products customers are searching for, customers start to look towards the competition. Moreover, stockouts of products can hamper the customer experience. That’s why it’s key to have accurate inventory management. RFID inventory solutions prevent the stockout issue and can reduce out-of-stock items by as much as 50 percent.

For example, upscale discount retailer Target adopted RFID inventory solutions to help manage its inventory starting in 2015. By attaching smart labels to products using RFID tagging, the company was able to improve stock accuracy. Target linked its success in improved sales in 2016 to RFID technology due to its capabilities that helped enhance management of inventory costs and improved operational efficiency. This also aided in enhancing Target’s ability to keep items in stock across its then-1,795 stores. Apparel retailer and department store Macy’s also has experienced the benefits of RFID technology, as it helped it to reduce its out-of-stock items. As a result, the company’s sales increased by over 200 percent.

Accelerate and Streamline Product Returns

Many large retailers are leveraging RFID distribution solutions to make the return process of their products easier and faster. For instance, Target decided to track items on an individual level using RFID tags because of its high volume of returns for online orders. RFID tags help to reduce the time it takes for workers to process returns manually since items can be read in bulk. This technology helped Target track returned items easily throughout the return process and altered how the company managed inventory to improve its return on investment.

Improved Shipping Levels

You can also leverage RFID logistics to enhance your distribution with on-time deliveries. That’s because RFID has built-in accuracy, and it can provide more than 98 percent accuracy for inventory management. Moreover, you can achieve shipping accuracy at some of the highest levels thanks to the power of RFID technology’s 100 percent inventory check capabilities. With improved accuracy, you can your lower distribution costs and ensure the right products are being delivered to the right locations.

Final Thoughts

Keeping track of your inventory and reducing situations that cause delays in shipment or stockouts is vital to enhancing your distribution process. You can improve your distribution process by investing in RFID logistics solutions.

PortalTrack from MSM Solutions helps you harness the power of RFID technology by providing a variety of RFID inventory solutions from RFID apparel solutions to RFID logistics. From streamlined product returns, enhanced shipping levels and facilitation of omni-channel processes, you can take advantage of the immediate benefits RFID brings and get a better return on your investment in distribution.


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