What is happening: A study by GS1 US and Auburn University’s RFID Lab has concluded RFID technology can help to achieve 100% order accuracy.
Why is this happening: Not only does 100% accuracy improve your brand and your reliability from a customer point of view, but it also cuts down on claims costs.
Comparison: Audits with legacy systems has an order inaccuracy of 69%, while RFID data had less than 0.01%.
Report: The phase 1 report includes a list of recommendations for suppliers and retailers when it comes to using the technology. They also included a ROI formula which should help supply chain managers prove the benefits.
What did director of Auburn University RFID Lab, Justin Patton say: “[The result] is much, much higher than expected. [It is surprising] just how much the industry as a whole has accepted the errors.
“The supply chain data accuracy processes have been frozen in time for decades, and a lot of the brands and retailers are begging for improvements, which is how we were able to get so much user support.
“This is the first [ROI formula] I’m aware of that focuses on supply chain. I know there are some ROI models focused on the retail store, RFID Journal has one and some others as well, but research for RFID and serialized item data in the supply chain is almost non-existent.
“That’s huge — this means that brand owners can reduce operating costs and improve margins by assuring the right goods are sent where they need to be, and ultimately, retailers can be more confident that they are delivering on their omnichannel strategies effectively. We can end claims and chargebacks right now, that’s billions of dollars saved.”