Fast becoming one of the most popular technologies for the retail industry, smart labels are viewed as an ideal way to leverage greater efficiencies and profitability in your business. This blog post briefly describes this solution and why it could improve your business. Also known as smart tags, smart labels are those that contain a chip or antenna for radio frequency identification (RFID) underneath the label, which can be made of plastic, fabric, or paper. The chips can contain a significant amount of information about the product – more so than any label that simply has a barcode or printed data on it. These labels can also contain a regular or 2D barcode and can be further customized to include magnetic strips for credit card applications.
Relative to business benefits, logistics and transportation segments are key areas that benefit from smart label technology, including experiencing increases in productivity as well as accuracy in delivery, all leading to a bolstered bottom line and an enhanced reputation. In these ways, the smart label has surpassed the previous use of barcode-only labels that simply cannot provide the same accuracy, readability and depth of information for productivity purposes.
Additionally, those in the retail segment in particular are benefitting from this kind of label technology. For example, large global retailers and their suppliers have already experienced better product tracking and inventory management due to this type of label advancement. Companies like Wal-Mart are realizing the significant savings they can reap from migrating from barcodes to these smart tags and RFID applications. Time savings, which also goes a long way toward reducing labor costs, has been achieved by not having to rely on a handheld scanner to log information on pallets or products.
There are also advantages to a retail business in terms of in-store benefits related to counteracting and reducing theft and even counterfeiting attempts related to all types of products. This is also true for strategies to stop criminals from breaking into in-store pharmacies to access prescription medicines. All these products can be tracked through the smart tags. This benefit can also be achieved within the warehouse environment to reduce product theft on the back-end segment of the business.
In summarizing the benefits of smart labels to a business, the main points are:
- From the warehouse and distribution center throughout the supply chain and into the retail store, these high-tech tags and labels are helping to improve productivity and accuracy as well as enhance inventory management and product information.
- There are significant reductions in labor and training costs as well as time savings that drive further profitability.
- Theft and counterfeiting is a major concern among retailers, but these labels significantly reduce this risk, also saving money for retailers.