In the second episode of this five-part series, Datascan’s Vice President of Technology Strategy, Herb Billings, spoke to host of Herb’s Hot Takes, Tyler Kern, about the benefits of using radio frequency identification (RFID).

Billings first discussed the four main use cases of implementing RFID: “It improves inventory record accuracy. It reduces manual labor time around inventory management tasks. You can implement it for anti-theft, and then display compliance — making sure you have one of everything on the floor.”

With the barcode system, most retailers are only checking stock biannually at best, which is becoming a big problem. “If you’re doing barcodes once or twice a year your average inventory record accuracy right before you count is somewhere around 35%,” Billings explained. With unmatched counts, this creates chaos for omnichannel and retailers.

Using RFID can alleviate a lot of that headache by allowing stores to count up to 40 times faster than traditional barcode counting. “That means you can actually count once a week if you like in your stores. If you’re counting once a week, you are going to be maintaining about a 98% or higher inventory record accuracy,” Billings said.

This technology will help ensure replenishment of stock is more efficient and on-time. Additionally, stores could even sell up to the last item while maintaining confidence in records and reducing safety stock. In fact, a study published recently showed a 4–8% increase in sales the more frequent counts are performed.

RFID use also allows users to reduce manual labor time, like using the data captured to analyze which products make it to the dressing room but never see the register.

Clearly, RFID technology has a myriad of uses. Find more information about RFID by tuning into the series, visiting Datascan’s website, or connecting with Herb Billings on LinkedIn.