Retailer improves operation with RFID traceability

Radio Frequency Identification (RFID) technology has the potential to improve retail and consumer goods operations. By enabling the traceability of goods, the technique automates a series of processes related to inventory management, ensuring the monitoring of products throughout the entire production chain.

The intensive use of this technology is still a challenge for large retail chains, as it requires adaptation of processes and the use of additional technological resources, capable of making the automation process viable. This was the demand presented by a large Brazilian retail chain, which hired act digital to manage the project program for modernizing stores using radio frequency identification technology (RFID).

The solution developed is a pioneer in the segment due to the scope of the retail network, which has more than 600 stores in operation in South America. With the implementation of traceability on a large scale, the company was able to have faster and more accurate access to data related to goods, facilitating a series of control and management processes.

The RFID system reads intelligent tags efficiently and quickly, as data capture on each product (which is recorded on the labels or tags) is done automatically and comprehensively. In other words, it is not necessary to read each item, because the information is transmitted by radio waves, eliminating the need for an optical reader and the need for product-by-product verification.

Do you want to know how we make this innovative solution possible? Continue reading and learn all the details of this successful case.

Client: retailer undergoing accelerated digital transformation

The retailer that hired act digital to contribute to the store modernization program is a publicly-traded Brazilian company with operations in Brazil and other countries in South America. A pioneer in its segment, the brand invests in the digital transformation of the business and stands out for the omnichannel experience it offers its clients.

Committed to generating consistent results, both financially and in terms of sustainability, the company is one of the main benchmarks in the segment for the adoption of ESG policies. It is also recognized for its innovation and advanced digital maturity.

Challenge: improve merchandise management

Standardizing physical and digital retail operations is an essential aspect for the company to be able to execute processes efficiently and quickly. In this sense, product traceability is essential for internal management. This client’s main demand with act digital is precisely related to the improvement of merchandise control and management mechanisms through traceability.

The project was developed with the aim of promoting a series of improvements related to the following points:

• Traceability of goods
• Indicators related to loss and breakage
• In-store customer experience
• Other indirect improvements

Solution: store modernization and implementation of the RFID system

In order to help the company overcome the challenges presented, act digital managed the project program for modernizing stores using radio frequency identification (RFID) technology. The developed solution is in line with the company’s current stage of evolution, in an advanced process of digitalization of its business model.

Applied Methodology

The developed solution encompasses the implementation of an entire merchandise control process using RFID, which would enable the traceability of products from the moment they arrive at the distribution center until they leave the store. RFID would also make it possible to control possible losses, whether due to damage or theft, in addition to streamlining the process at the checkout counter by controlling the purchased parts. Due to the agile control provided by traceability, another additional benefit is the reduction of out-of-stocks.

Applied Technology

The goods traceability and control system was incorporated into the company’s operations through technological tools developed and implemented by act digital. The technology set, customized for this client, encompasses the following capabilities.

• APIs (API Manager)
• RFID Tags
• Reading Hardware
• GIA
• LDAP
• POS
• Oracle Tools (ORMS, ORSIM, ORFM, and WMS HighJump)

Results: gain in operational efficiency

The implementation of the merchandise tracking and control system associated with the modernization of the stores increased the company’s operational and managerial efficiency. The results obtained are comprehensive. Check them out!

• Traceability of products throughout the chain
• Improved accuracy in inventory management (from 61.5% to 88.8%)
• Time to carry out inventory in stores reduced from 3 months to 8 hours
• Reduction of product loss
• Less occurrence of breakage
• Decreased queues at stores
• Reduction of operational cost

With the traceability system structured and operating in all the brand’s stores, the long-term efficiency gain will boost the results obtained and further qualify the omnichannel shopping experience.

Today, the brand is recognized worldwide for pioneering the adoption of RFID traceability in its operations, as it is the first retail chain to use technology on a large scale.

How we can help your company

Digital technologies are increasingly present in the operations of companies operating in the retail and consumer goods segment. The efficient traceability of goods, for example, can improve the efficiency of operations, reduce losses, and provide a satisfactory shopping experience across all channels. And this is just one technological resource among many that can bring a competitive edge to your company.

At act digital, we have specialized teams that understand the challenges of each client, according to their market, to develop tailored solutions. We have the expertise to promote integration, automation, and security on all fronts of business operation, in addition to implementing revolutionary technologies for the segment, using augmented reality, artificial intelligence, internet of things (IoT), among other tools.

The digital transformation of retail has already begun, and RFID traceability is just one part of it. Come be part of this change! Get in touch with our experts: