It is perhaps the greatest problem facing retail stores today and it's not online competition. Many billions of dollars each year is lost to theft in stores and the problem is growing. So much so that the livelihood of small business' is being threatened. The frustration levels of small retailers is understandable. But there is a way to combat the issue and even thrive in some cases.
To make RFID work as an effective tool in store, you will need to know your stock levels at any given time. This can be achieved easily, as doing a stock take using RFID can take approx 15 to 20 minutes at the end of each day, plus you have an advantage of an accuracy level of 99%. Try doing that using traditional methods.
The system works using RFID Tags that are attached to every saleable item in store and entered in the inventory database along with it's SKU. This is in part, the reason why the time it takes to do stock takes is greatly reduced and is also the key to reducing or eliminating theft or shrinkage. How it works is that the RFID chip in that is embedded in the tag, is a UHF (Ultra High Frequency) chip, which simply means that it can be tracked from greater distances, up to 25 meters. If someone tries to take an item past the RFID reader that is mounted at the front door of the store it alerts you.
Some of the other benefits of using RFID in store are:
- An increase in inventory accuracy to 99%
A greater ability to keep goods stocked on the shelves- thus increasing sales.
A reduction in shrinkage from the average of 4 – 5 % to less than 1%.