The mobile phone industry has seen rapid growth within the last decade; driving competition amongst brands to release the latest handset and upgrades. The sector has become one of the fastest growing with 380 million units sold in 2017 alone.
As the industry continues to see exponential growth, retailers within this space are experiencing a number of challenges around accurate inventory management. These challenges include the time it takes receiving out-of-stock products and adequate shrink management within their stores.
As competition amongst these retailers intensifies, they are seeking new ways to enhance their inventory management and adapt to ever-changing customer needs by utilizing item-level RFID technology.
For a number of years, RFID technology has been utilized within the apparel & footwear sector to provide retailers with an accurate view of their inventory. The mobile phone space shares many similarities with the clothing and accessory sector. In particular, these industries share the same challenges and pain points: poor on hand inventory data, out of stocks of best selling products and accessories, and inability to expose accurate inventory levels to online sales channels.
Smartphone and accessory sales are in the billions. However, inventory management has been difficult for stores at retail-level with missing phones and accessories; leading to large losses.
Using item-level RFID for Inventory management and Reducing shrink & out-of-stocks
Using SML’s RFID tags and enterprise-class Clarity™ solution, retailers are able to achieve a greater level of inventory management and in-store operations with state of the art performance, real time alerts, and scalability. Using the complete RFID solution, which can include RFID handheld terminals and fixed RFID readers, retailers can significantly reduce time taken to process new inventory, out-of-stocks, isolate shrink and allow store associates to locate specific phone models more effectively.
In addition, SML’s RFID solution removes the need for in-store staff to carry out manual, time-consuming stock checks and instead allows them more time to focus on providing an enhanced customer experience. This also provides greater stock accuracy. We have seen that since utilizing RFID, mobile phone retailers can experience a lift in stock accuracy on phones and accessories from using existing non-RFID systems of 65%-75% to over 98% using RFID.
SML has provided millions of encoded RFID tags to mobile phone retailers; enabling them to better track and manage their inventory. Working with some of the largest global brands, SML works in partnership with its customers to provide a high-impact solution unique to each business case and to ensure rapid ROI.