Reducing waste through RFID technology
To help reduce retail waste, merchandisers must decrease the number of products shipped to landfills each year. To achieve sustainable fashion retail, RFID technology enables brands to reuse stock and reduce the amount of raw materials needed for item creation. Retailers can modify stock, reducing material consumption during the early stages of production and they can also determine understated or excess inventory, which has a highly significant impact on waste reduction. The environment also benefits from retailers that operate based on leaner inventory models, as they can reduce operating costs without sacrificing sales volume. By doing so, clearance products are reduced while eliminating the need to mark items and perform reverse logistics on unsold items.
Retailers can conduct stock counts regularly with an increased inventory accuracy between 93% to 99% by using RFID technology. This is critical for the sustainability of fashion retail since more effective inventory logistics implies less waste along the supply chain and in storefronts. If brands begin implementing RFID solutions for sustainable fashion, retailers can be confident that they are only procuring what they require, and they can swiftly adapt to customer trends, creating only what will likely sell. This reduces overstocking and improves transportation efficiency.
Elevating circular fashion
Item-level RFID technology is widely recognized for enhancing the customer experience and reducing in-store pressures. However, the technology can also be deployed to advance circular fashion. With enhanced traceability and inventory accuracy, retailers are able to effectively reduce waste and carbon emissions, as well as improve their sustainability practices significantly.
By providing greater visibility into the supply chain, improving inventory management, and enhancing the customer experience, RFID technology can help retailers improve their sustainability practices and reduce waste.