RFID technology has revolutionized the way businesses track and manage their inventory, supply chain operations, and customer experiences. In the first part of What's RFID all about, we discussed what RFID technology is, its history, and how it works. In this post, we'll explore the key benefits of implementing RFID technology and how it can help businesses improve their efficiency, accuracy, and profitability.

The benefits of RFID

RFID can read many tags simultaneously

Unlike a barcode that must be scanned individually and directly in front of the reader to ensure it has been correctly read, RFID technology enables the operative to scan multiple items at a time due without the need for a line of sight.

Automated scanning

The process of scanning RFID can be fully automated, removing the need for any human interaction and decreasing human errors and thus can contribute to labor savings.

Individual item search

The benefits of using RFID tags include being able to search for individual items once they have been RFID enabled. With this functionality, sales can be increased, and more significantly, prevent writing off inventory that's actually available yet may have been misplaced.

Accurate stock management

Further examples of the benefits of RFID include retail inventory information linked to readers at the doors that identify stock leaving or entering the store. This helps detect possible theft and identify shipment count discrepancies.

RFID limitations

While there are many advantages to RFID, there are also limitations users must be aware of.

Metal disrupts the RF waves

RF waves bounce off metal, so tags inside a metal box or surrounded by metal fixtures may not be read as reliably as tags situated away from such objects.


The cost has also been a barrier to many organizations as the implementation of RFID needed considerable investment. More recently, such costs have been reduced, as well as IT integration became seamless and scalable thanks to solutions such as Chainlane’s platform.

Why you should implement RFID

RFID provides businesses with the ability to track shipments throughout the supply chain, from the product’s inception to its final destination. Therefore, products can be tracked all the way from raw material at manufacturing to their production and assembly to their delivery and arrival at distribution centers or warehouses to ongoing shipments as finished products to individual stores ready for consumer purchase. RFID captures and provides real-time information, which leads to improved performance within organizations by helping to protect their bottom line, increasing stock accuracy, and addressing shrinkage.

During stock take processes, where tasks are completed by humans who need to follow procedures correctly yet can make honest mistakes, process errors can occur. For example, an employee could incorrectly scan a number of items resulting in an inaccurate stock file which cause potential inventory shrinkage. RFID technology provides a solution that limits the need for human intervention and limits the decision-making process, thus removing the possibility for the wrong decisions to be made that are critical to ensure the business’s stock integrity is maintained.

Chainlane’s solution is the perfect way for retailers to interpret their data enabling them to make informed decisions. The implementation of RFID can provide significant benefits to retailers which include better controls around inventory management and improved security.

RFID technology offers numerous benefits, such as automated scanning, accurate stock management, real-time information, improved inventory management, as well as enhanced security. Although limitations such as metal disruption and cost exist, the benefits outweigh limitations immensely.

And along with Chainlane, retailers can analyze their data and make informed decisions to maintain their stock integrity.