RFID gains traction with retailers and manufacturers,  says study

The results of the 2014 GS1 US Standards Usage Survey show that apparel and general merchandise manufacturers and retailers are using item level Electronic Product Code (EPC)-enabled radio frequency identification (RFID) to enhance inventory visibility and respond to consumer demands for omni-channel options.

The survey mirrors a Capgemini Consulting study reported in SCMR last year that revealed industry views about the rapidly evolving retail landscape, including business challenges and opportunities.

The survey found that nearly half (48.2%) of the manufacturers surveyed responded that they are currently implementing RFID, and another 21.1% planned to implement RFID within the next 12 months.

Additionally, 18.4% planned to implement RFID over the next 13-24 months. Respondents reported that 40% of items made by apparel and general merchandise manufacturers have RFID tags.

Of the retailers surveyed, more than half (57%) reported that they are currently implementing RFID, and another 19.3% planned to implement RFID within the next 12 months. Additionally, 10.5% planned to implement RFID in 13-24 months. Respondents reported that on average 47% of items received by apparel and general merchandise retailers have RFID tags.

“These findings confirm that the retail industry is nearing an RFID adoption and usage tipping point,” said Dr. Bill Hardgrave, dean of the Harbert College of Business and founder of the RFID Lab, Auburn University. “RFID is no longer just something proven in concept—it is providing tangible results for manufacturers and retailers, and provides the inventory accuracy that omni-channel retailing demands.”

The survey measured the usage of EPC-enabled item level RFID by both manufacturers and retailers (including manufacturers who are also retailers). For manufacturers, RFID has been proven to offer multiple benefits, including reinforcing authenticity, decreasing inspection costs, reducing shrinkage and enhancing logistics accuracy. For retailers, RFID provides greater than 95% inventory accuracy, improved sales, decreased out-of-stocks, increased margins and expedited returns, according to Auburn University research.