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Automated inventory management is becoming a ‘key battleground’

Supply chain and logistics news

Dive Brief:

  • Automated inventory management is a “key battleground” to keep businesses competitive in the mid- and long-term as sellers move more inventory, according to a report from ABI Research.
  • RFID systems for soft goods and fashion merchandise can offer a 3% boost in revenue and 44% return on investment (ROI) within the first year at stores with annual sales of just under $6 million, with ROI increasing to over 200% in the third year.
  • Though RFID systems can be effective in some merchandise categories, more advanced tech is required to reap similar benefits in other industries, and those technologies are less developed as of yet.

Dive Insight:

As RFID penetration picks up, and other artificial intelligence-backed technologies come to market, the value of achieving “near-perfect” inventory comes into focus. So much so that research firm ABI Research’s new report asserts it will be a major area of competition for businesses of all sizes.

Though RFID has been around for over a decade, adoption rates have only recently increased to any significant degree as the technology has become more affordable, according to ABI Senior Analyst Nick Finill.

Based on Finill’s interviews with RFID technology providers — both hardware and software — as well as the head of RFID technologies from a major U.K. retailer, the ABI senior analyst concluded that small retail business could save approximately $6,000 per year in inventory-related labor, and a large store could save $72,000 per year.

more:

Source: Automated inventory management is becoming a ‘key battleground’ | Supply Chain Dive

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