Kim Berknov, Executive Chairman, Detego
The retail environment has never been more demanding than it is today, thanks to fierce competition, the growth of e-commerce, and consumers’ high expectations for seamless shopping experiences. It’s a situation made even more difficult by a lack of inventory visibility, the complexity of supply chains and the sheer variety of products retailers are faced with. With conventional inventory systems typically operating at between 60 to 70 per cent stock accuracy and on-floor product availability, it’s no wonder brick-and-mortar sales are declining due to out-of-stock situations and poor customer experiences.
While retailers are faced with a growing number of solutions to these issues, RFID is the only technology that’s proven to consistently meet retailers’ needs for leaner processes, accurate inventory visibility and real-time data analytics.
When RFID is implemented correctly, retailers are achieving up to 99 per cent inventory accuracy and product availability, reducing out-of-stock situations by 50 per cent and seeing a revenue increase of between 5 to 15 per cent. A recent study by Accenture showed 69 per cent of retailers worldwide cite a significant level of RFID adoption, making RFID the clear leader in digitising retail supply chains and stores. However, how retailers go about implementing this technology is crucial to future success and longevity.
As with any technology project, choosing the right partner is vital. This is particularly true of RFID projects, where complex supply chains and rapid turnover of goods need to be managed on a global scale. By selecting specialised and experienced professionals who understand a retailer’s business model and its challenges, retailers can build an infrastructure of people who will ensure a successful implementation.
Detego, which has been implementing its RFID-based software platform for over 10 years, believes that a comprehensive solution is another key to success. When built with purpose, flexibility and user experience in mind, retailers can maximise the benefits provided by RFID technology. Detego’s modular platform covers everything from the factory to distribution centres, stores and even consumer engagement in the store. In this way, Detego can help retailers quickly and systematically unlock the power of RFID technology to seamlessly merge online and offline retail.
Due to the resource requirements and financial implications of an RFID project, a proven implementation strategy is crucial to manage process change and boost ROI. Detego does this through a three-phase approach which starts with piloting its software in a handful of selected stores to prove the business case. Typically, the next stage is a rollout of the store network where the revenue uplift from increased inventory accuracy and product availability can fund the ongoing investment in RFID. Next, Detego will continue to move upstream to the distribution centres, allowing for complete supply chain visibility and the introduction of its omnichannel features. This enables retailers to access all routes to market as well as introducing consumer engagement solutions such as smart fitting rooms and/or chatbots.
Detego’s proven experience and methodologies are continuing to pioneer the future of retail with RFID and IoT technology, revolutionising retail processes, and making the shopping experience more connected and streamlined than ever. The cloud-hosted Detego platform is provided as a modular Software as a service (Saas), allowing retailers to scale it alongside their business without replacing existing technology stacks.
Learn more about how Detego is helping retailers unlock the power of RFID.