Macy's RFID deployment may make for a text book case
Radio frequency identification technology isn't new, but RFID hasn't taken deep root in retail given a slew of challenges. That may change, however, given the RFID experience spearheaded by Macy's, according to a Forbes report.
The technology has long been advocated as a way to boost inventory management and tune up the supply chain.
Macy's, said Bill Connell, the chain's SVP of transportation, process improvement and operations, is integrating RFID into its business and plans to expand use across all stores and fulfillment location by the end of 2018, according to Forbes.
Although its RFID deployment isn't even 1 year old, Macy's is seeing a "big impact" on profits and sales, Connell told Forbes.
"With an increase in the inventory accuracy, out-of-stocks are significantly reduced," he said. "And by cutting the out-of-stocks, item availability is increased, which can lead to substantial and measurable sales increases."