The recent flood on the market of RFID “Starter Kits” that allow retailers to “test” the effectiveness of RFID on-site in the retailer’s store space has me perplexed.
For “starters”, why test what has already been proven to deliver superior result
s and an impressive, very positive return on investment? The facts from extensive RFID pilot periods are out there for retailers to evaluate.
I can personally attest to the results I achieved implementing item-level RFID for a large apparel chain. In addition to increasing inventory accuracy to 99+ percent while reducing inventory time substantially, I witnessed a 15 percent lift in merchandise sales.
Independent studies support what I experienced first hand. For example, the RFID Research Center at the University of Arkansas has conducted multiple tests and trials that confirm that radio-frequency identification tags on individual retail items can significantly improve inventory accuracy, even within departments or stores that already have high inventory accuracy.
Bill Hardgrave, founder and former director of the RFID Research Center says this about RFID, “Use of RFID 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 price tags for these starter kits range from $3,499 to $9,999.
Let’s look at what’s included: For $3,499, the retailer receives 100 EPC Gen 2 labels, 1 Motorola MC3090-Z handheld reader, 1 cradle, 1 power supply, 1 power supply cable, 1 USB cable, 1 battery and a 90-day trial version of software with 30 days of email support. The $9,999 package includes about 150 non-adhesive labels; a Motorola handheld terminal and charging cradle (MC3090-Z), software for one site, inventory reporting capability with three months of free reporting. Retailers receive on average, one hour of web training and with the higher priced kits, nine hours of start-up phone support during business hours.
We note that these starter kits provide only 150 tags. Most tests require thousands of tags. At roughly ten cents a tag, the 150 tags in the starter kit represent only a $15 value.
Importantly, one hour of training is not enough. Nine hours of support is not enough. To get up to speed implementing RFID at the item-level requires much more training and
staff support.
But the bigger question remains: Why test what has already been proven to work?
We advise retailers who are interested in experiencing what RFID can do for their business to implement a complete “out of box” solution, one that is easily integrated into the systems already in place in their stores. Such a solution will deliver
so much more than a “starter kit” and at a price that is competitive.
Look beyond the starter kits for a solution that can be scaled across stores as is, and is flexible for any future enhancements the retailer might want to add. Starting with one location, the right solution can then easily be rolled out to other locations whenever the time is right for the retailer.
I recommend a robust “Jump-start” for your RFID program, rather than a “starter kit”.