As technology-led transformations in retail and other businesses become mainstream, we’re to see a higher degree of technology integration in business operations. Various technologies are witnessing unprecedented adoption. At present, RFID technology is being adopted by the retail industry, supply chains, and manufacturing industries to eliminate bottlenecks and drive growth. According to a report by Global Market Insights, the adoption of RFID is growing exponentially and the global RFID market is projected to grow at a CAGR of 12% between the forecast period of 2023-2032. The global RFID market is at 15B USD at present. The global retail RFID market alone is expected to reach 26.6 Billion USD by 2032, with a CAGR of 8.92% between 2023 and 2032. Another report by Fortune Business Insights suggests that the global IoT (Internet of Things) market is valued at 595.73 Billion USD in 2023 and it is expected to cross 4062.34 Billion by the end of 2032, growing at a CAGR of 24.3% between the forecast period of 2023-2032.
RFID and IoT-based Solutions for the Retail Industry
The adoption of RFID, IoT, BLE, and other technologies in the retail industry presents ample opportunity to remove inefficiency and achieve complete on-floor visibility. The use of RFID and various IoT devices, sensors, and gateways allows for improved operational efficiency and enhanced productivity and growth. RFID and IoT devices not only bring on-floor visibility but also streamline order fulfillment and improve customer services in physical retail stores as well as e-commerce platforms.
Let’s see the technical aspects and practical applications of RFID and IoT technologies in retail, with a specific focus on RFID tagging and tracking of articles, IoT-based solutions at the point of sale, RFID-based inventory management, Android and IoT solutions for smart shelves, smart shopping carts and fast billing, IoT solutions for preventing shoplifting, and EAS (Electronic Article Surveillance) and RFID-based security solutions.
Let’s see some of these solutions in the retail sector:
RFID Tagging and Tracking of Articles
RFID tagging involves attaching RFID tags to retail items, allowing for their unique identification and tracking throughout the supply chain and in-store. These tags consist of a microchip (IC) and an antenna, which emit radio waves to communicate with RFID readers.
RFID tagging of each retail asset allows retailers to achieve real-time visibility of their inventory, reduce stockouts, and enhance the overall shopping experience for customers. RFID technology enables retailers to streamline their supply chain operations, improve accuracy in inventory management remove human errors, and minimize the manual effort required for stocktaking.
IoT-Based Solutions at Point of Sale
IoT-based solutions at the point of sale have revolutionized the way transactions are conducted in retail stores. Integrating IoT devices such as smart terminals and sensors, BLE beacons, etc. retailers can create a seamless and personalized checkout experience for customers. The use of IoT can remove long queues at POS counters. These solutions also enable retailers to gather real-time data on customer behavior, preferences, and purchasing patterns, allowing for targeted marketing and efficient inventory management. The use of BLE beacon-based periodic advertisement with response (PaWR) is quite prominent in this regard.
Moreover, IoT-based point-of-sale systems facilitate secure and contactless payment options, enhancing convenience and safety for both customers and employees. Quick payment solutions also encourage more people to shop at retail stores, driving overall sales.
RFID-Based Inventory Management
RFID-based inventory management systems have emerged as a game-changer for retailers seeking to optimize their stock control processes.
We at Ruddersoft Solutions Private Limited offer a comprehensive inventory management solution that utilizes technologies like RFID, barcode, and BLE beacons to unlock item-level visibility at the warehouse premises and provides an intuitive dashboard with inventory reports and insights. The software solution integrates RFID readers and other IoT devices and sensors for better asset visibility and audit and compliance.
Unlike traditional barcode systems, RFID technology allows for simultaneous reading of multiple items, significantly expediting stock replenishment, cycle counting, and order fulfillment. A single RFID reader by Zebra Technologies (the Zebra FX9600 Fixed RFID Reader) can scan over 1200 tags per second from a distance of over 20 feet. The accuracy and speed offered by RFID-based inventory management systems not only reduce labor costs but also minimize the risk of errors associated with manual data entry. Additionally, RFID enables retailers to implement automated stock replenishment and real-time analytics, leading to improved decision-making and enhanced operational efficiency. It allows warehouse managers to predict demand and manage inventory stock accordingly.
Android and IoT Solutions for Smart Shelves
The convergence of Android and IoT technologies has paved the way for smart shelves, which are equipped with RFID readers and BLE sensors to detect product movement and monitor stock levels. The ESL (Electronic Shelf Label) that uses BLE beacons and tags offers great benefits in this regard.
These intelligent shelves can provide real-time inventory visibility, automate restocking processes, and offer personalized product recommendations to customers based on their preferences. Thus, integrating Android and IoT solutions for smart shelves enables retailers to optimize shelf space, reduce instances of out-of-stock items, and deliver a more engaging and interactive shopping experience.
Smart Shopping Carts and Fast Billing
IoT-enabled smart shopping carts have redefined the traditional shopping experience by integrating RFID technology and sensors to track the items placed in the cart. Such an innovation allows for automatic itemized billing, enabling customers to bypass traditional checkout lines and complete their purchases swiftly. The utilization of IoT in smart shopping carts not only enhances convenience for shoppers but also provides valuable data insights for retailers, facilitating targeted marketing and inventory optimization.
IoT Solutions, EAS Security for Preventing Shoplifting
Shoplifting is a serious issue in retail as per a latest Forbes report that states that shoplifting has become a 100 billion USD problem globally. Therefore, the deployment of IoT solutions for preventing shoplifting has become imperative for retailers aiming to enhance security measures within their stores. Some retailers in distinct USA states are now locking up their items behind the check-out counter to prevent shoplifting even when it results in a huge drop in their sales.
By leveraging IoT devices such as smart surveillance cameras, connected sensors, and predictive analytics, retailers can proactively detect suspicious behavior and potential theft incidents. IoT technology enables real-time alerts and notifications to store personnel, facilitating prompt intervention and deterrence of theft activities.
Electronic Article Surveillance (EAS) systems, combined with RFID technology, offer comprehensive security solutions to safeguard retail merchandise from theft and unauthorized removal. EAS tags, utilizing RFID or acoustic-magnetic (AM) technology, can be seamlessly integrated with the existing RFID infrastructure to provide dual benefits of inventory management and theft prevention. The utilization of RFID-based security solutions not only enhances the overall security posture of retail stores but also contributes to a more efficient and seamless shopping environment for customers.
Finally, the integration of RFID and IoT technologies has ushered in a new era of innovation and efficiency in the retail sector. From RFID tagging and tracking of articles to IoT-based solutions at the point of sale, these technologies have redefined the way retailers manage inventory, conduct transactions, and ensure security.
As the cost of RFID and IoT deployment comes down in upcoming years, the adoption of RFID and IoT technologies will play a pivotal role in shaping the future of retail operations, driving enhanced customer experiences, and optimizing business processes. Retail giants like Walmart, Target, Macy’s, H&M, Zara, Benetton, etc. have already started to use RFID for their retail supply chain and store operations. At present, the retail industry is the largest sector that uses RAIN RFID labels.