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Survey says nearly half of product manufacturers implementing item-level RFID

For retailers, RFID provides greater than 95-percent inventory accuracy, improved sales, decreased out-of-stocks, increased margins and expedited returns, according to Auburn University research.

March 23, 2015

The results of the 2014 GS1 US Standards Usage Survey show that apparel and general merchandise manufacturers and retailers are using item-level Electronic Product Code-enabled radio frequency identification to enhance inventory visibility and respond to consumer demands for omnichannel options.

The survey found that nearly half (48.2 percent) of the manufacturers surveyed responded that they are currently implementing RFID, and another 21.1 percent planned to implement RFID within the next 12 months. Additionally, 18.4 percent planned to implement RFID over the next 13-24 months. Respondents reported that 40 percent of items made by apparel and general merchandise manufacturers have RFID tags.

Of the retailers surveyed, more than half (57 percent) reported that they are currently implementing RFID, and another 19.3 percent planned to implement RFID within the next 12 months. Additionally, 10.5 percent planned to implement RFID in 13-24 months. Respondents reported that on average 47 percent of items received by apparel and general merchandise retailers have RFID tags.

"These findings confirm that the retail industry is nearing an RFID adoption and usage tipping point," said Dr. Bill Hardgrave, dean of the Harbert College of Business and founder of the RFID Lab, Auburn University. "RFID is no longer just something proven in concept — it is providing tangible results for manufacturers and retailers, and provides the inventory accuracy that omnichannel retailing demands."

For retailers, RFID provides greater than 95-percent inventory accuracy, improved sales, decreased out-of-stocks, increased margins and expedited returns, according to Auburn University research.