How RFID Tags Can Help Retailers
RFID allows for automated data collection to increase productivity and reduce human error. It provides traceability, logistics and access control.
The system consists of three components: the tag (identifies products/people), an antenna and a reader. The latter can function even if the tag is covered with dust and dirt.
1. Loss Prevention
With shrinkage costing retailers $60 billion annually, it’s imperative to prevent theft and fraud. RFID technology can significantly improve inventory accuracy and reduce losses in stores. By attaching an RFID tag to each item, retailers can track it throughout the supply chain. This helps reduce shrinkage and maximize ROI for retailers.
Retailers can retrace shoplifting events and connect the data with loss trends to inform policies, making it RFID Tag easier for associates to interrupt theft in the act. Additionally, the data provides insights into what’s happening in each store and division, enabling the company to focus loss prevention efforts on the areas that need it most.
Passive tags operate without batteries and receive energy from electromagnetic waves sent by the RFID reader. This energy is used to power the microchip in the tag, allowing it to transmit its unique identity and data.
The RFID tag can also transmit other information, such as the location of the item in the store, when it entered or exited a zone, and its status, like being unsold or on hold for return. The system can even identify unauthorized users and alert staff. This is because the RFID tag uses a microchip that can be programmed to store a kill password that can be activated at will. This feature, coupled with a secure connection to the reader, gives retailers control over their data and allows them to protect their customers’ privacy.
2. Casinos
Casinos have a unique challenge in that they use chips that are worth a lot of money, and they need to be able to track every chip for authenticity and history. RFID, or Radio-Frequency Identification, technology can be embedded into each and every one of these tokens to help combat counterfeiting. These chips don’t just make it impossible to steal a chip’s serial number, but they also log the exact location of the token on the casino floor and the time spent at that specific area.
This information can be used for several things, including catching dealer mistakes, and even player cheating on the casino’s behalf. It can also be used to keep track of player activity and flag any players who are making more wagers than usual, or are on a suspiciously winning streak.
As a bonus, this system can be paired with key tracking lockers to help control physical key security. This is a major concern for casinos, as one lost key can result in steep fines and force a venue to rekey entire wings of their facility. A centralized system that allows supervisors to receive instant alerts whenever an employee signs out a key, can greatly reduce this issue. In addition to preventing theft and logging key movements, this kind of system can help create workflows that improve the way that employees work.
3. Gun Safety
Guns are the top item targeted by thieves in the U.S. military, which has accelerated its research into RFID guns to keep track of them. RFID tags inside guns communicate with RFID readers using radio waves, allowing the reader to identify the weapon instantly. This eliminates the need to count weapons during daily inventory drudgery and allows the reader to read all the tags at once.
However, a RFID expert has found that it’s possible to bypass this security feature by cloning the tag with a specialized scanner and putting it in a holster, where the reader will be fooled into thinking it is the firearm. The expert’s test proved that the RFID system could be defeated, and he warned fellow service members of the danger of incorporating the technology into their weaponry.
Some RFID systems allow the reader to suppress alert signals when they are not required, such as during practice at a range. When a firearm is withdrawn from its complementary holster strap, the RFID reader in the holster sends a signal to the mobile device associated with it to tell it that an officer has withdrawn his or her weapon. The mobile device then broadcasts an alert to help personnel quickly locate the officer in need. Other systems allow for the issuance of an alert from any mobile device, regardless of which police station is responsible for the incident.
4. Dressing Rooms
Many retailers have now started using RFID technology in dressing rooms, like Ralph Lauren did in 2018. This involves mounting a mirror in the dressing room that reads the tags of the garment and overlays it onto a virtual screen. Customers can then request different sizes or colors, and the item will be sent to them instantly. It’s a way to offer personalized service and keep customers coming back.
This is a great benefit for departmental stores, especially those that sell various brands under one roof and are difficult to segregate (Moon and Ngai 2008). It can also prevent shoplifting, as the RFID system will immediately report any items taken into the RFID Card Supplier dressing room but not returned. It will make it easier to detect the stolen items and prosecute the culprits.
Another great advantage is the ability to track the progress of merchandise throughout its life cycle. In the manufacturing phase, it can be used to monitor and control all the processes of the product such as sewing, cutting, knitting, grading etc. It can even trace the different fabric lots in processing and weaving. This will help the companies to avoid mixing of different lot and thus to ensure better quality and consistency of the products.
The RFID can help in store merchandising by eliminating the need for manual price scanning at checkouts. This can increase the speed of the checkout process and cut down on errors. It can also be used to estimate stock levels on a daily basis, preventing popular items from going out of inventory and having to be sold at discount prices in the future (Gimpel et al. 2007).