RFID (Radio Frequency Identification) technology has given enormous and cutting-edge opportunities to display high operational efficiencies and improved cost-management. The tech giants in the retailing line have been getting benefits from RFID as it promises to build and create retailing ideas at unprecedented levels. Target Corporation is one such example as the company is using RFID technology in its store since 2015 to achieve high customer satisfaction.
Why Does Target Company Use RFID Technology?
Target has rolled out RFID technology in its store to change the display of products in-store, enhance supply chain infrastructure, bring transparency, visibility and availability. All these features of RFID technology helped Target to unveil the true meaning of omnichannel retailing.
Keri Jones, vice president of Target’s global supply chain and operations, showed confidence towards RFID deployment in 2015. Jones stated that it was an exciting and perfect time to invest in RFID technology due to its extraordinary characteristics. RFID technology has the potential to work behind the curtains of stores as well as on the screen of mobile phones.
Target exploited RFID technology to experience its seamless benefits behind the scenes of in-stores infrastructure. Target embraced RFID technology to keep themselves one step ahead from consumers, helping them to know about customer behavior and preferences.
Therefore, Target started RFID implementation with smart labels. Price tags embedded with smart labels enhance Target’s inventory accuracy and visibility. It brings benefits both for the customer and retailer level. On a customer side, he can check whether the desired product is present in the in-store or any nearby locations, and it helps the retailers to fill their stocks once the quantity reached to a minimum level.
Target invested almost $1 billion in RFID technology across 1,600 stores. As a result of this investment, Target experienced an indirect increment in sales numbers. One of the primary reasons for this sales increment is due to high customer service, which was achieved by deploying a large amount of investment in RFID technology. Before using RFID technology, Target worked with staff and students at the RFID Lab of Auburn University to explore new ways for increasing the shopping experience, commented by Keri Jones.
Since Target also depends on online sales as 15% of sales is generated through an online portfolio, RFID enables Target to complete their online orders accurately by delivering on time or allowing the users to pick up from stores.
Consider a situation in which customer places an order online, but your staff couldn’t able to deliver on time, or in the worst case, the store doesn’t contain that product. In both cases, the customer will face disappointment, leading to creating a poor customer-buyer relationship.
Retailing industries face these kinds of challenges daily. On a brighter side, Target implements RFID technology to overcome these issues. Achieving inventory transparency and availability has empowered Target to reserve a specific seat in the retailing market. Furthermore, once Target made transparency in the stores, they can ship products timely. This shows how Target takes benefits from RFID technology and how RFID technology improves customer experience for Target’s supply chain stores.
The success stories of firms after deploying RFID technology are already present in front of retailers. RFID at Amazon, Walmart, Uniqlo, ZARA and Decathlon are all taking benefits from RFID. Check out our latest blogs to learn why retailers need RFID technology.
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