Retail Logistics – RFID System

How to introduce RFID in fashion retail sector?

RFID base technology has been taken up by a storm in the retail sector with companies like ASDA, Wal-Mart, Bloomingdales as well as Target using the technology to management their procurement and supply chain functions. The scope for the RFID technology is great in the fashion retail sector as well as it can be used to market the inventory for warehousing while avoiding issues of stock and increasing optimization of resources for the business function. Individual shipments that are packaged in the retail sector for transport and distribution can be marked with the FRDI technology which would enable the fashion retailer to track their merchandise in real time while also making it possible for them to have a quick response for order fulfillment to avoid stock outs that can lead to loss of business and profit losses. The efficiency of the system also increases the margin based profit and revenue earned by the fashion retailers by decreasing their cost per item.

Evaluate the applicability of RFID by the following points (Product Replenishment) in fashion retail market:

Product replenishment in the fashion retail industry is a crucial business activity pertaining to replacing and stocking the shelf space with new merchandize as quick as possible to keep the customers satisfied. RFID technology can enable fashion retailers to have a reliable product replenishment function by ensuring timely delivery of mechanize to the retail stores and allowing the retailer to track the progress of their goods in real time.

RFID use in the fashion retail sector provides te retailers with a chance to integrate supply with their suppliers. Through integrated suppliers the retailer is not responsible for the management of the product inventory as it is handled by the integrated supplier. The integration of the supply and procurement system using RFID technology enables the fashion retailer to synchronize production of the suppliers with the demand that they face in the stores for their product lines leading to elimination of wastage and synchronization of production. The RFID technology implementation also allows the fashion retailers to automate store ordering and product replenishment for its product lines by informing the supplier in real time of any products that need to be replenished in the immediate future this reducing the need and the costs associated with management of inventory.

Evaluate the viability of RFID in fashion retail market and how to support ECR by using RFID in the following points:

The RFID technology is increasingly becoming popular in the fashion retail industry as it provides the fashion retailers with distinct advantages and benefits for the management of their store, stock and meting the demand of their customers. The following highlight the use of the RFID

The RFID technology is used by fashion retailer to handle large quantities of products lines and merchandize efficiently while reducing the costs associated with managing large and diverse product lines. This enables the retailer top provide their customers with a comprehensive and a large selection of diverse products top select from.

The automated order procurement and reorders facilitated FRID enables the retailers to decrease the time it takes for them to restock their product offerings and items at their retail stores by reducing the lead time for handling procurement.

Bar-coding is conducted on individual items to track their origin which has to be printed on their packaging,. This can be difficult as well as time consuming with increased costs. The RFID technology allows the retailers to use chips instead of barcodes for tracking their orders in bulk as well as in individual items. Moreover RFID chips can be reused unlike the barcode which decreases the costs associated with suing RFID instead of barcodes for managing and tracking merchandise for the fashion retailers.

The RFID technology can also enable the fashion retailers in the industry accurately track their ordersfro0m the suppler end to the receipt of the shipments to their stores. The individual items locked with RFID can be tracked in real time leading to accurate recording of the stock in transit while also providing ac complete picture of the goods shipped, dispatched and received in the real time. Aside form this the fashion retailer can also benefit from minimal chances of stock outs as the RFID technology can enable the retailers to contact the suppliers for automatic procurement ordering when the current stock reaches a minimal level.


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2008, Apparel RFID 2008 – 2018 – Hundreds of Organisations Are Now Using RFID. Web.

Finnish Fashion Company NP Collection Implements RFID Technology with UPM Raflatac UHF Tags, Integrated Solutions.

Moon, K.L., Ngai, E.W.T., 2008, The adoption of RFID in fashion retailing: a business value-added framework, Industrial Management & Data Systems, Vol. 108 Issue 5 page 596 – 612.

Retail Fashion Market RFID Solutions- Motorola, The RF Edge. Web.

RFID at the Height of Fashion With Clothing, Shoe Companies. Web.

Swedberg, C., 2007, Two Singapore Fashion Retailers Use RFID to Track Inventory, RFID Journal.

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