RFID Adoption picking up with Enterprise in Retail

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Retail organization in India as well as globally, are increasingly relying on RFID technology to achieve greater efficiencies on their supply chain management.

At a time when retail focused enterprise segment is looking at enhancing their SCM solutions, RFID, is coming as a handy tool in this regard. RFID is one of the promising technologies of recent years, and is fast proofing to be a major enabler for tracing & tracking of goods and assets around the world. Several reports from market research firm have revealed multiple benefits of this new technology to the prospective users in the enterprise segment.

This technology is expected to revolutionize the conventional supply chains, making them real-time and more efficient, with near-total visible inventory across the material flow. RFID is being accepted globally as a technology for automation.

Most importantly, recent success of projects and rollouts by retailing giants like Wal-Mart, METRO has raised great expectations in this industry for improving their supply chains. Anticipating the potential benefits, almost all major retailers in the advanced world are setting up timelines for the adoption of RFID across their supply chains.

According to industry experts, RFID solution can increase inventory turns by 10 to 15%. Greater inventory turns facilitate capital resource optimization, increased margin procurement and significant reductions in obsolete inventory levels. Such high benefits of RFID are set to greatly impact the operating results of a business organization, making it more competitive and increasingly profitable on the long run.

In today’s immensely competitive business scenario, the war amongst businesses are not between retailer A and retailer B, but between the entire supply chain of retailer A with that of B. And the basic aim while designing a market oriented supply chain is -how does one meet the single most objective of “Customer getting right product, at right time, at right price” and this is possible only if his supply chain is working at full efficiency level, capturing and utilizing the material flow data across all levels in the chain.

Thus, the Indian retailers are compelled to follow their global counterparts, by adopting RFID technology for making their supply chains more efficient and transparent. To surge ahead in the current situation, the Indian retailers have already started realizing the potential of RFID technology.

Moving forward and after seeing the success of RFID in the US and European markets, Indian retailers have a solid business case to use RFID to completely optimize their supply chain management and increase their efficiencies to multiple counts.