Could your small business benefit from RFID technology? While plenty of large businesses use it to boost their profits, a lot of smaller and medium sized businesses are unsure whether it would deliver the same benefits.
Here, you’ll discover the benefits of RFID technology and whether it could help your small business.
What is RFID technology?
RFID technology basically means Radio-Frequency Identification and its used to identify, as well as track, any tags attached to various objects. These tags contain information which is electronically stored.
The technology is used in a wide range of sectors. For example, it can be used on pharmaceutical products to track them through the warehouse process. So, how exactly does RFID technology help businesses?
What are its benefits?
There’s a lot of benefits that come from RFID technology. The tags are capable of withstanding harsh environments and feature a pretty long read range.
One of the major benefits in terms of business, is it can help to track data in real time. So, if your marketing strategy relies upon various data collection and analysis, RFID technology can make your life much easier!
It’s also great for helping you to keep track of inventory. So, if you’re looking to speed-up and make your logistics process much smoother, RFID technology could help. You’ll be able to better-track your warehouse inventory, ensuring you consistently have adequate stock levels. Of course, this in turn will help speed up your delivery process.
Once you have a good idea of your inventory, you can get your parcels sent out via companies like TNT, and they’ll arrive with the customer in record-time. These are just some of the awesome benefits the technology can deliver.
Is it suitable for smaller to medium sized businesses?
Absolutely! Although it is largely used by big businesses, its benefits for smaller and medium sized businesses are often underestimated.
According to a survey in 2016, a staggering 73% of retail businesses either had, or were planning to, implement RFID technology. This is largely down to its ability to provide much more accurate inventory counts.
Inventory can be tracked, right the way through the supply chain. Without RFID technology, many retailers rate their inventory accuracy at approximately 24% a year. That’s really low and will ultimately lead to many unhappy customers! With the technology in place, this accuracy rate can be increased to practically 100%. So, it makes sense for small to medium businesses to take advantage of the technology.
The only potential downside to RFID technology, is its cost. It’s true that implementing the technology into your small or medium business could cost a small fortune. However, the return on investment is definitely worth the high initial cost; especially if you have a lot of expensive products.
Overall, RFID technology isn’t new, but it is currently more popular with larger businesses. That isn’t to say it won’t work well for small and medium sized businesses however. If you can find the funds to install it, you’ll never look back!