New Study Confirms RFID Enables Nearly 100% Order Accuracy for Retail

New research from the Auburn University RFID Lab and GS1 US found that brand owners and retailers using Electronic Product Code (EPC)-enabled radio frequency identification (RFID) to optimize inventory management and reconcile product shipments are capable of achieving 99.9 percent order accuracy. Using item-level RFID technology, retailers can decrease out-of-stocks, improve loss detection, boost sales margins and expedite returns.

Measuring a sample of more than 1 million items from five leading retailers and eight brand owners, the study also found that when RFID was not implemented, 69 percent of orders shipped and received from brands to their retailer partners contained data errors. These errors were revealed in picking, shipping, and receiving, resulting in inventory inaccuracies and costly chargebacks from the retailers to the brand owners. Additionally, the research exposed that brands and retailers generally accept these process errors and attempt "work-arounds," which often result in additional errors and costs.