Famed retailer Syms/Filene’s Basement filed for Chapter 7 on November 2, 2011, and is closing all 47 stores. Marcy Syms, the company’s chief executive, said in statement that the two discount chains were burdened by increasing competition from department stores… she also said there was less overstock for her company to buy as businesses managed their inventory carefully. One way this is being accomplished is with inventory management employing RFID tag systems
RFID systems received their biggest endorsement when one of the globe’s leading retailers, Wal-Mart, harnessed the power of tags by placing them in clothing items to assess buying patterns, prevent losses and create a more efficient inventory system, from the receiving department to the point of sale. But you don’t have to be the size of Wal-Mart to benefit from the implementation of RFID in a wholesale or retail store environment.
But you’ve done okay up to now, so why change? Jewelry retailers, consider how often have you heard customers say that they can’t tell you exactly what kind of jewelry designs they like, but will “know it when they see it”! While that can work for your customers, it’s impossible to tailor your inventory to the ideas in their imaginations, and guessing can be costly and inefficient. That’s where RFID comes in. By using these tags with a system integrated RFID pad reader on the countertop, you can monitor what pieces of jewelry are being shown most often and how often they are being purchased. You can also find out which pieces aren’t impressing customers and consider ceasing to order that jewelry in the future. With RFID tags on your items and a pad reader on which to place items shown, the readers will take care of the statistical calculations for you.
Speaking of ordering — in addition to helping you compile statistics on which to base ordering decisions, you can also use RFID to monitor stock and trigger automatic re-orders. Because you can take inventory in seconds rather than days, all you need to do is scan your jewelry cases and you can create accurate purchase orders reflecting the tastes of your clientele. You’ll never have to worry about overstocking unpopular items or running out of in-demand items; you can easily set up a low-stock alert to stay one step ahead of the game. Setting up inventory alerts can create profitable partnerships between retailers and manufacturers, all thanks to the efficiency and instant access to information that RFID provides.
Using RFID in a retail setting not only helps you streamline your inventory and cut losses but also promotes smarter staff decisions. RFID-equipped pads can tell you which salespeople are the most efficient by monitoring who is showing and selling individual pieces of jewelry. You could even access information such as what day and time you have the most purchase activity; the potential of RFID is limited only by your imagination.
If you’re a retailer looking to build better relationships with your suppliers and jewelry manufacturers, implementing RFID can help. Your store will soar to the top of a manufacturer’s priority list once representatives experience the ease of assessing inventory in an RFID-equipped retail setting. Reps can serve your stores better and will be thankful for the time your RFID system saves them.
The inventory management benefits of RFID are real, which is why retailers and suppliers to leaders such as Wal-Mart, Target, Marks & Spencer, and Albertsons have been hurting competitors by implementing this technology in retail settings. RFID is quickly moving from the warehouse to the sales floor, bringing with it an array of benefits for both retailers and their suppliers. The efficiencies it brings will revolutionize the entire retail jewelry supply chain; and threaten to eliminate those who fail to implement and sharpen their game with RFID.