Successful Thanks to RFID Technology!
The corona pandemic has strongly pushed the digital transformation of the retail industry in 2020: Omnichannel services were expanded almost overnight, new e-commerce options were introduced and digital delivery capacities were increased to ensure the safest possible shopping experience for consumers create.
However, a prerequisite for order options such as specifying a specific pick-up time in the store or delivery to the consumer's home on the same day is a precise inventory overview in real time. This is made possible, for example, by RFID solutions from Checkpoint Systems.
The events of 2020 changed buying habits and the way retailers interact with their customers. The combination of stationary and digital shopping - omnichannel - was significantly expanded so that branches became mini-fulfillment centers.
“Buy online and pick up in store” - BOPIS for short - came to the fore. For example, US retailer Dick’s stated that 75 percent of its online orders in the second quarter were processed directly from stores - either by shipping from the nearest store to the customer or by roadside pickup. Even after the lockdown ended, when shops reopened, street pickups continued to increase.
It was originally expected that roadside pick-ups would decrease significantly, but that was not the case. In addition: Strong omnichannel services such as BOPIS and Ship from Store enable retailers not only to survive during the pandemic, but the customers who ordered through these channels also spent more on average.1
Decisions Based on Real-Time Data
When retailers expand their ecommerce offerings this way, the key to success is inventory accuracy. In the event of a lack of accuracy, there is a risk of order cancellations and negative customer experiences. Concerned that the goods ordered by the customer might not be in stock in sufficient quantities, many retailers decide to reorder as a precaution. Excess inventory, however, leads to a loss of sales if it is not sold directly and therefore has to be reduced in the further course, and at the same time the storage requirements and costs increase.
The solution for improved inventory accuracy is provided by RFID solutions from Checkpoint Systems, one of the world's leading providers of RFID technology. With the help of RFID, retailers know in real time how much goods they have in store in individual stores and in distribution centers across the company. They can therefore react extremely quickly to changing consumer demands, make information-based decisions about reorders and redistribute goods based on sales data.
An inventory accuracy of up to 99 percent instead of the average 65 to 75 percent prevents out-of-stock situations and customer dissatisfaction. The costly additional acquisition of excess inventory is also no longer necessary. Click & Collect and other online services can be offered efficiently and cost-effectively using RFID solutions from Checkpoint Systems, as the inventory can be monitored and used in all branches and not just in the distribution centers.
Timely and precise data help retailers to optimize the order picking processes in the stores, enable quick inventory transparency and the effective reorganization of the entire supply chain. In the branches themselves, RFID enables the precise and efficient identification of orders and their picking. This lowers the operating costs and guarantees the promised level of service.
Checkpoint Systems has implemented its RFID solutions in distribution centers and stores around the world and has enabled many retailers to achieve high inventory accuracy - for fast and efficient omnichannel fulfillment. As the only company in the industry, Checkpoint Systems covers all steps from the factory to the store.
Miguel Garcia Manso, Business Unit Director Germany von Checkpoint Systems, comments: “By using data that is captured by our RFID solutions, retailers can reliably offer their customers order options such as specific collection times in the store or same-day delivery. Customer orders can be reliably fulfilled, regardless of which shopping channel the customer chooses."