The results of the 2014 GS1 US Standards Usage Survey show that apparel and general merchandise manufacturers and retailers are using item level Electronic Product Code (EPC®)-enabled radio frequency identification (RFID) to enhance inventory visibility and respond to consumer demands for omni-channel options.
Manufacturers
The survey found that nearly half (48.2%) of the manufacturers surveyed responded that they are currently implementing RFID, and another 21.1% planned to implement RFID within the next 12 months. Additionally, 18.4% planned to implement RFID over the next 13-24 months. Respondents reported that 40% of items made by apparel and general merchandise manufacturers have RFID tags.
Retailers
Of the retailers surveyed, more than half (57%) reported that they are currently implementing RFID, and another 19.3% planned to implement RFID within the next 12 months. Additionally, 10.5% planned to implement RFID in 13-24 months. Respondents reported that on average 47% of items received by apparel and general merchandise retailers have RFID tags.
“These findings confirm that the retail industry is nearing an RFID adoption and usage tipping point,” said Dr. Bill Hardgrave, dean of the Harbert College of Business and founder of the RFID Lab, Auburn University. “RFID is no longer just something proven in concept—it is providing tangible results for manufacturers and retailers, and provides the inventory accuracy that omni-channel retailing demands.”
The survey measured the usage of EPC-enabled item level RFID by both manufacturers and retailers (including manufacturers who are also retailers). For manufacturers, RFID has been proven to offer multiple benefits, including reinforcing authenticity, decreasing inspection costs, reducing shrinkage and enhancing logistics accuracy. For retailers, RFID provides greater than 95% inventory accuracy, improved sales, decreased out-of-stocks, increased margins and expedited returns, according to Auburn University research.
“After seeing the proven benefits of RFID in pilot programs, both manufacturers and retailers are realizing its many long-term business advantages,” said Melanie Nuce, vice president of apparel and general merchandise, GS1 US. “As industry collaboration and discussion grows, it will be difficult for companies to ignore RFID’s role as a critical enabler of inventory visibility and the seamless customer experience.”
For more information on item-level RFID, including how to launch an RFID program in your organization, and to learn more about the GS1 US Apparel and General Merchandise Initiative, visit www.gs1us.org/ApparelGm.
About the GS1 US Apparel and General Merchandise Initiative
The GS1 US Apparel and General Merchandise Initiative is a retail industry group that is committed to defining business challenges and opportunities and organizing members to explore solutions and create adoption plans. More than 125 suppliers, distributors, retailers and logistics providers are participating members in Initiative activities, focused on improving inventory accuracy, exchanging standardized product data and achieving traceability with GS1 Standards. More information about the GS1 US Apparel and General Merchandise Initiative is available at www.gs1us.org/apparel/gm.
