Product availability in retail stores has become a major competitive factor. Insufficient replenishment processes and missing inventory visibility still account for a major fraction of lost sales. AutoID may eliminate inventory record inaccuracy and improve the means of employees and customers to localize products. However, to date a lack of knowledge about the information value of this technology prevents a comprehensive financial evaluation. This paper proposes and demonstrates a simulation method that is able to capture the information value of item-level RFID in retail supply chain operations. Overall our results show that the ROI of item-level RFID depends on many factors. We demonstrate that a positive ROI is possible at the current price of passive RFID transponders.

RFID is simply a better way to count. Compared to bar code cycle counting operations, RFID offers huge benefits in time saved and labor costs. RFID has proven to reduce out-of-stocks by 60 to 80 percent and increase sales from 4 to 20 percent.

This engagement brought many innovations of the retail sector into the products and solutions.

Key applications for AutoID in retail include:

  • Warehousing and Supply Chain Automation
  • Electronic Article Surveillance (EAS)
  • Automated Inventory taking
  • Electronic Point Of Sale (POS)
  • Backstore, Frontstore article tracking
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