RFID tags improve shoe inventory accuracy, tests suggest
A new study from the RFID Research Center at the University of Arkansas appears to confirm that radio-frequency identification (RFID) tags on individual retail items can significantly improve inventory accuracy, even within departments or stores that already have high inventory accuracy.
“Previous research–both ours and that of other groups–has repeatedly demonstrated that RFID has the ability to count inventory quickly and accurately,” says Bill Hardgrave, director of the research centre and professor of information systems in the Sam M Walton College of Business. “Use of this technology leads to improved inventory accuracy and the consequent benefits of fewer out-of-stocks, less safety stock and better ordering and forecasting. Because of its accuracy and reliability, it also eliminates the need for manual counting and large-scale inventories done once or twice a year.”
The study examined the use and impact of RFID on individual items within the shoe and bra divisions at five JCPenney stores. The researchers focused specifically on the effect of an RFID-enabled system on inventory management and accuracy, also taking into account efficiency and accuracy of counting inventory.
