Why Retailers are Urging Suppliers to Source Tag RFID Labels

One of the revolutionary technologies reshaping the retail industry is Radio-Frequency Identification (RFID). Retailers are increasingly recognizing the benefits of RFID, and a growing trend is the insistence on suppliers to source tag RFID labels. In this blog, we delve into the reasons behind this shift and the myriad advantages it offers to both retailers and suppliers.


Enhanced Inventory Accuracy:

Traditional methods of inventory management often fall short in providing real-time, accurate information. RFID technology enables precise tracking of individual items, leading to near- perfect inventory accuracy. By sourcing RFID-tagged products directly from suppliers, retailers can minimize errors, reduce stockouts, and optimize their inventory levels.

Efficient Receiving and Handling:

RFID simplifies the receiving and handling processes in retail warehouses. With RFID-tagged products, retailers can use automated systems to quickly and accurately process incoming shipments. This not only speeds up the supply chain but also reduces labor costs associated with manual handling and data entry.

Streamlined Stock Replenishment:

Suppliers sourcing RFID-tagged labels contribute to a seamless stock replenishment process. Retailers can use RFID technology to automatically identify items that need restocking, streamlining the replenishment process and ensuring that shelves are consistently well-stocked. This efficiency enhances customer satisfaction by reducing instances of out-of-stock products.

Reduced Shrinkage and Theft:

Inventory shrinkage due to theft or administrative errors is a significant concern in the retail industry. RFID acts as a deterrent to theft, and by source tagging products, retailers can monitor and reduce instances of shrinkage. The visibility provided by RFID helps in quickly identifying discrepancies and taking corrective actions.

Improved Supply Chain Visibility:

RFID provides end-to-end visibility into the supply chain, from manufacturing to the retail shelf. By sourcing RFID-tagged products, retailers can gain insights into the movement of goods, identify bottlenecks, and optimize the entire supply chain. This visibility is invaluable for making data-driven decisions and responding swiftly to changes in consumer demand.

Enhanced Customer Experience:

Retailers understand the importance of providing a seamless and enjoyable shopping experience for customers. RFID contributes to this by ensuring that the right products are available when and where customers want them. By minimizing stockouts and improving inventory accuracy, RFID positively impacts customer satisfaction and loyalty.

Real-Time Stock Visibility:

Highlight the role of RFID readers in providing real-time stock visibility, enabling retailers to monitor inventory levels continuously, reduce stockouts, and make data-driven decisions to optimize stock replenishment.

RFID4U has a suite of solutions for retailers to use RFID. Explore our Retail RFID Solutions.