Retail companies and brand manufacturers are today using RFID in the field of stock management and logistics. Palettes and boxes used for transporting merchandise are labeled with RFID tags. 10 to 15 years are estimated to pass before transponders are deployed broadly throughout stores. Up until now, the use of RFID on products has only been tested in pilot projects such as the METRO Group Future Store Initiative. But even in these early stages it is plain to see that retailers and manufacturers and more importantly customers stand to benefit from RFID.

Thanks to RFID, customers can rest assured that their favorite cheese will be in stock. “Out of stock” situations will not arise as the stock management system spots low stock levels of tagged goods well in advance allowing store employees to restock and if necessary, re-order the missing articles in time. The system also identifies which products are close to the expiry of their “best before” date and informs service staff accordingly. They can then remove these products from the shelf ensuring that customers always find fresh food in the store. The check-out procedure is also significantly accelerated as customers no longer have to empty their trolley at the cash-desk. Returning goods will also be easier in the future: customers not longer have to present a receipt when returning goods. RFID clearly identifies goods, which protects customers against counterfeit merchandise. Furthermore, there are a wide variety of foreseeable advantages for the home: Innovative kitchen appliances fitted with RFID readers such as intelligent fridges or microwaves can help the consumer in giving advice on shelf life and preparation of ready-made meals.

Seeing as retailers can use RFID to check and manage stock more efficiently, they can also reduce stock levels. The lead time between ordering and delivery is now accelerated. Store managers can easily check at which point in the supply chain a pallet is at any given time. Manufacturers can reduce the amount of stock they have to write-off. Firstly, goods are much less likely to spoil, because their, Seeing as retailers can use RFID to check and manage stock more efficiently, they can also reduce stock levels. The lead time between ordering and delivery is now accelerated. Store managers can easily check at which point in the supply chain a pallet is at any given time. Manufacturers can reduce the amount of stock they have to write-off. Firstly, goods are much less likely to spoil, because their, “best before” date is automatically checked. Secondly, goods are less likely to disappear because RFID tags also serve as merchandise security. Enhanced availability builds customer loyalty, which in the long-run generates higher revenues and greater market share.

Manufacturers also benefit from the improved transparency along the supply chain. They can also reduce their warehouse stock levels and produce just-in-time according to orders from retailers. Consequently, manufacturers can fully exploit their capacities. RFID also accelerates and simplifies stock-picking. Uninterrupted goods availability also boosts the revenues and productivity of manufacturers. Market researchers estimate that consumer goods manufacturers lose between eight and ten percent of revenues, because consumers face empty shelves. Thanks to RFID this is history. In addition, RFID also combats product piracy: the code stored on the tag - the electronic product code (EPC) - clearly identifies the manufacturer of the product.