Demand Forecasting in Retail using RFID Technology

 In retail management, retailers face inadequate stock accuracy, out-of-stocks, object location, inventory management, internal shrinkage, and supplier frauds.

Unfortunately, a retailer's profitability may be negatively affected by the loss of any of these systems.

While the advanced item-level intelligence RFID solution technology enables the consistency of information and brings insight back into the supply chain by enhancing the data integrity at the item level.

Resolution with the Advance Technology

RFID tags use an extensive technological concept that acknowledges retailer’s requirements and provides several approaches to prevent theft while improving the quality of item-level data.

It's great that you are visiting the grocery store, loading your basket and going straight out the door. And, you've skipped the billing that lets you look at the cashier, who picks things one by one from the bin.

The mystery behind that is RFID (Radio Frequency Identification) tags will attach to an electronic reader that can recognize and ring up every item in the cart almost automatically. 

RFID tags are smart bar codes and can be used to connect to a networked device to monitor any product you place in your shopping cart. People always have complaints about the lengthy checkout queues at the grocery store.

This item-level intelligence has been revolutionizing the retail industry, once it was restricted to livestock monitoring. Now, it has been used to monitor consumer products all over the world.

Many producers use the tags to track the location of each product since its production until it is taken off the shelves and placed in a shopping cart.

Technology drives the demand forecasting in retails

Predicting demand is the process of using data to analyze the quantity of a given product or service that consumers will want to purchase during a specified period. This predictive analytics method helps retailers to recognize the amount of stock that will be needed at a given time.

Demand forecasting is essential for any rising retail business. Without adequate defined processes in place, the right amount of stock in the inventory at a specific time may be almost difficult.

As far as retail is concerned, it is assumed that RFID technology would enhance supply chain coordination and encourage demand forecasting. A great deal of detailed and accurate data will be made available for each item at various points in the supply chain.

As provided data by RFID technology is more comprehensive and reliable than the current data. Our capacity to control and predict demand will increase and that will help everybody in the supply chain.

The adequate management of products enables avoiding out-of-stocks that directly disappoint customers. While an accurate demand forecasting, a customer never goes empty hands from the store that certainly results in high customer satisfaction.

Conclusion

As the retail market expands, RFID can gain more support for greater adoption and eventually affect both products and retail industries. The system can bring significant advantages in terms of timely availability, a lower rate of depreciation, optimized inventories, and better promotional management.