BY SUSAN K. LACEFIELD, ASSOCIATE MANAGING EDITOR
AUTO ID
technologyreview
Is item-level RFID
right for you?
Sure it’s pricey, but for certain companies, the
benefits of item-level tagging far outweigh the cost.
Here are five signs yours might be one of them.
RFID FINALLY SEEMS TO BE HITTING ITS STRIDE.
Last year, several big-name companies—particularly in the
retail industry—launched large-scale item-level RFID tagging initiatives. For example, Macy’s Inc. pledged that all
850 of its Macy’s and Bloomingdale’s stores would be using
RFID technology by 2012.
These early initiatives are reportedly producing big benefits. According to a white paper from Motorola Solutions,
“Item-Level RFID Tagging and the Intelligent Apparel
Supply Chain,” companies that have implemented item-level tagging programs are achieving inventory accuracy
rates of between 98 and 99. 99 percent and have seen sales
jump anywhere from 4 to 21 percent.
With results like these, you may be wondering, Is my
company ready to join the item-level RFID revolution?
Here are some indicators that your company might be a
good fit for the technology and is ready for the next step:
1You have inventory accuracy issues that can’t be solved with bar codes. Industry experts say there’s a reason why item-level RFID has gained traction in the retail
sector: RFID easily trumps bar codes when it comes to
doing store inventory counts. Conducting a storewide
inventory with bar codes typically requires scanning every
single item, a labor-intensive task that most stores only
perform once or twice a year. RFID technology allows
them to obtain more accurate data with significantly less
time and labor.
With a more accurate picture of its inventory in hand, a
company can reduce out-of-stocks and increase sales.
That’s what really spurred the adoption of RFID in the
retail industry and made 2011 such a big year for the tech-
nology, says Chris Warner, senior product marketing man-
ager for Motorola Solutions, which makes RFID readers
and antennas.
2You are tracking relatively high-priced items. While the cost of RFID tags may have dropped, they’re still not free, and neither is the labor or automated equipment
required to apply them. “To get a good ROI, your variable
cost for tagging the item—which includes the price of the
tags themselves as well as labor or gear to get your tag on an
item—has to be lower than the net benefit that you are
