RFID Technology a Big Hit at 2011 National Retail Federation “Big Show”

idth=”300″ height=”225″ />If the buzz surrounding RFID technology at the recent National Retail Federation (NRF) “Big Show” in New York City is an indication, 2011 will be the year of widespread implementation of item-level RFID throughout the retail industry.

RFID companies were only a small part of NRF, retail’s biggest and most important event, but Truecount Corporation’s RFID displays saw robust activity. We never stopped demonstrating. There was steady a stream of retailers through our booth, and the booth of our partner Motorola Solutions, with retailers eager to learn more about advanced item-level RFID technology and how its applications can solve their most pressing business problems.

Why the strong interest in item-level intelligence at NRF this year? Research shows that most retail companies lack accurate information about the inventory in their stores. This includes activities relating to the shipping and receiving of items from the manufacturing source to its final destination. Retailers cannot track with precision when or where an item has been received, where it currently resides in the store or if it was never received, is missing from the display floor or back room, reached its final destination or was stolen.

In fact, according to statistics from the RFID Research Center at the University of Arkansas, the current inventory accuracy rate for apparel stores in the U.S. is only 65 percent. That means that one-third of the intelligence needed for re-ordering, forecasting, planning and meeting consumer requests is flawed.

With the economy bouncing back, but still uncertain, positive ROI is more critical than ever. Retailers know that inventory accuracy has a direct impact on the store’s bottom line, and on a store’s competitiveness

During one of the sessions at the NRF show, Peter Longo, the president of logistics and operations for Macy’s, one of the nation’s premier retailers, remarked that retailers have been making decisions daily on “fundamentally corrupt data”. He pointed out that “no matter how good the bar code is, it is woefully short of what you can do with RFID.” He further reported that his stores see the greatest benefit of RFID technology as its ability to “improve inventory accuracy, which can help grow sales, increase customer satisfaction and enhance margins.”

RFID is not only more accurate, it is faster. For inventory counts, a retailer using Barcodes can scan 200 to 250 times an

hour. Using item-level RFID, that same retailer can count more than 5,000 items an hour, and with greater precision. The speed of RFID cuts stock room labor costs by 25 to 35 percent.

Dozens of potential applications for item-level RFID technology in the supply chain have been identified; from automating inbound and outbound shipping processes to tracking returns, reducing internal shrinkage, and more.

When I first undertook item-level RFID tagging six years ago, few others in the industry had my passion for this technology. In fact, I couldn’t understand how something that was so powerful and so beneficial was not being embraced by everyone. Now, Macy’s, Bloomingdales, Wal-Mart, J.C. Penny’s and other retailers are accelerating the pace with proven success in achieving both compelling ROI and enhanced customer satisfaction.

RFID technology is advancing. The new generation of RFID

tags is capable of storing more data on each tag. Implementation is easier too. With the power of RFID confirmed and best practices and global standards firmly in place, retailers are increasingly ready to implement. According to a recent survey by the Sheridan Group, 40 percent of 125 retailers surveyed state they will implement an RFID via a pilot store or roll out within the next 24 months.

Look for 2011 to be the year for item-level RFID for the retail industry.