Retailers Scramble to Fight Record-Breaking Shrinkage. Here’s Why.

Businesses should look to find new ways to protect their assets and employees as rising supply chain risks and challenges occur. Risks like higher record-breaking shrinkage in stores and labor shortages can potentially jeopardize safety and store operations. Recent studies released by the National Retail Security Survey show that total retail shrinkage in 2021 is now almost a $100 billion problem. This study also shows that 88% of participating retailers reported that the pandemic led to an increase in overall risk for their company. A massive amount of retail shrinkage can drain inventory, impact the ability to meet consumer expectations, and risk the safety of your store. Challenges with labor shortages, employee retention, and issues from the pandemic have contributed to why shrinkage is so bad now. Poor customer satisfaction and decreased labor productivity usually cause shrinkage and can lead to incomplete supply chain visibility.

Therefore, stores must protect operations with ways to boost productivity and visibility. Retail associates can protect their stores with solutions such as RFID tracking that deliver greater supply chain visibility. Stores should look to implement RFID if they struggle with these challenges:

1. Slow and inaccurate asset tracking - Real-time, in-motion tracking from RFID can help stores keep watch over their assets. Broad, location-aware data capture through operations with RFID technology helps meet safety needs. When decision-makers are more aware of asset locations and can track them in-motion, it empowers real-time visibility. As the supply chain expands and shrinkage has the potential to increase, real-time visibility helps ensure your assets and store.
2. Suffering from counterfeit items - Dependably verifying the authenticity of assets with RFID can ensure your inventory is accurate and counterfeit items don’t get through. RFID comes equipped with advanced capture capabilities to read assets accurately and efficiently every time. Warehouses that prioritize reducing counterfeits create a more accurate inventory that boosts safety and efficiently meets expectations.
3. Untimely inventory counts - RFID devices can ensure inventory counts are updated immediately with real-time monitoring of materials, products, and personnel. Instant updates on cycle counts and your assets improve inventory management to reduce theft and lost devices. A streamlined inventory counting process ensures an accurate overview of assets for instant locationing.

How to Start an RFID solution:

• Find an experienced partner with a wide range of RFID solutions
• Assess your space with dependable wireless connectivity
• Pilot your system
• Make adjustments as the business grows                                                                        

As retail shrinkage continues to increase and threaten retail operations, it’s important to implement tracking technology to protect your assets. LEARN MORE about RFID or explore other ways to combat shrinkage with Heartland.