A customer walks into a store, finds a product, but the size they want isn’t on the shelf. The associate quickly checks the system, confirms availability in the warehouse, and has it shipped to the customer’s doorstep the same day. This seamless experience is the essence of omnichannel fulfilment, blurring the lines between online and offline retail to give shoppers what they want, when and where they want it.
But delivering on such expectations isn’t simple. Retailers must maintain real-time visibility across stores, warehouses, and distribution centres while keeping operations efficient. This is where RFID in omnichannel fulfilment steps in as a game-changer. By giving retailers the ability to track inventory with precision and speed, RFID ensures that the promise of omnichannel retail isn’t just aspirational, it’s achievable.
Understanding Omnichannel Fulfilment
Omnichannel fulfilment refers to the integration of multiple sales channels—physical stores, eCommerce platforms, mobile apps, and third-party marketplaces into a unified network. Customers browse online, in-store, return through a third-party, or request curbside pickup. For businesses, this requires:
- Real-time inventory visibility across all channels
- Optimal order fulfilment through effective location and space utilisation
- Accurate demand forecasting to prevent stockouts or overstocking
- Consistent customer experience regardless of the channel used
Traditional systems relying only on barcodes or manual counts often fall short in meeting these requirements. RFID brings a level of automation and accuracy that allows omnichannel strategies to function smoothly.
How RFID Works in Omnichannel Retail Fulfilment
RFID has evolved into a critical tool to deliver seamless services across all channels. Here’s how it works:
1. RFID Tags:
Each product is fitted with an RFID tag containing a microchip and antenna. The microchip stores data like SKU, serial number, and other product identifiers.
2. RFID Readers:
Fixed or handheld RFID scanners send out radio waves, which are picked up by the antenna in the tag. The reader captures, analyses, and scans the data without touching.
3. Real-Time Data Capture:
Because RFID tags can be read in bulk, thousands of items can be identified simultaneously in a matter of seconds. This capability is especially valuable for warehouses, stores, and fulfilment centres handling large volumes.
4. Integration with Systems:
The captured data is automatically integrated into warehouse management systems (WMS), ERP platforms, or specialised omnichannel fulfilment software. Businesses can track product movement, stock levels, and location in real time.
5. Precision in Tracking:
Unlike barcodes, which only confirm that an item exists, RFID can pinpoint where exactly an item is—whether it’s in the backroom, on a delivery truck, or on a retail shelf.
Through this process, RFID in omnichannel fulfilment eliminates guesswork. It equips retailers with live, item-level visibility to promise customers accurate product availability across every channel.
Benefits of RFID Customers Feel
RFID-enabled fulfilment provides many benefits to customers. Here are a few listed below:
1. Real-Time Inventory Accuracy
Inventory inaccuracy is one of the biggest barriers to effective omnichannel operations. With RFID, stock accuracy often exceeds 95%, compared to 60–70% with traditional methods. This ensures customers don’t face the dreaded “out of stock” message when a product is actually available.
2. Smarter Order Routing
With RFID-enabled systems, retailers can route an order to the nearest store or warehouse that has confirmed availability. This reduces delivery times, optimises logistics costs, and enhances customer satisfaction.
3. Seamless Buy Online, Pick Up In-Store (BOPIS) and Curbside Pickup
BOPIS depends heavily on accurate stock data. RFID ensures that when a customer places an online order for in-store pickup, the product is truly available, reducing cancellations and frustration. Multi-channel inventory management boosts RFID supply chain fulfilment.
4. Faster and More Efficient Warehouse Operations
RFID accelerates picking, packing, and dispatch by helping staff locate items instantly. This not only saves time but also reduces human error, ensuring orders are shipped correctly the first time.
5. Improved Returns Management
Returns are inevitable in omnichannel retail. RFID makes it easier to process returned items by instantly verifying authenticity, condition, and location, allowing retailers to restock quickly and reduce losses.
6. Enhanced Customer Experience
From product availability to quick delivery and hassle-free returns, RFID creates a consistent shopping experience across channels. Customers perceive the brand as reliable and responsive, which builds loyalty.
7. Greater Supply Chain Transparency
RFID monitors operations across distribution, logistics, and supplier locations. They are not restricted to a single store or line of work. Retailers can trace an item’s journey from manufacturing to delivery, ensuring accountability and compliance.
8. Reduced Operational Costs
Although RFID requires an upfront investment, the long-term benefits include lower labour costs, fewer write-offs from lost or misplaced stock, and more efficient resource use.
By integrating RFID in omnichannel fulfilment, businesses strike a balance between operational efficiency and customer satisfaction.
Real-World Examples of RFID in Omnichannel Fulfilment
Zara uses RFID to ensure store associates know exactly where items are located. This helps the brand replenish shelves faster and guarantee product availability for online orders.
Decathlon has implemented RFID tags across millions of items, streamlining checkout processes, reducing theft, and enabling more accurate fulfilment across digital and physical channels.
Macy’s integrated RFID into its inventory systems, resulting in over 95% accuracy, which directly boosted its omnichannel strategies, such as same-day delivery and in-store pickup.
These examples show that RFID is not a futuristic tool—it is already driving results for global retailers.
Future Outlook: The Role of RFID in Omnichannel Growth
As customer expectations continue to rise, RFID in omnichannel fulfilment will become even more critical. Integration with emerging technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) will unlock deeper insights, from predictive demand forecasting to automated replenishment. Retailers who adopt RFID early will be better positioned to stay competitive in a crowded market.
Conclusion
Omnichannel fulfilment gives customers the convenience of time, place, and preferred delivery options. Customers expect seamless, accurate, and fast service, whether they shop online, offline, or a combination of both. By integrating RFID in omnichannel fulfilment, businesses gain the tools to meet these demands with confidence.
From inventory precision to improved customer satisfaction and operational efficiency, RFID transforms fulfilment into a competitive advantage. Want to explore these traceability solutions? Reach out to Qodenext today.
FAQs – RFID in Omnichannel Fulfilment
1. How does RFID help in omnichannel fulfilment?
RFID provides accurate, real-time inventory visibility that helps retailers manage stock across multiple channels, ensuring smoother fulfilment and better customer experiences.
2. How does RFID improve order accuracy?
By automatically tracking product location and status, RFID reduces human error and ensures that the right item reaches the right customer every time.
3. Is RFID expensive to implement?
While there is an upfront investment in RFID tags, readers, and integration, the long-term cost savings from reduced errors, improved efficiency, and better customer satisfaction often outweigh the costs.
4. Can small retailers benefit from RFID in omnichannel fulfilment?
Yes. Even small and mid-sized retailers can benefit from RFID by enhancing stock accuracy, streamlining returns, and delivering improved omnichannel experiences.
5. What industries outside retail use RFID for fulfilment?
Apart from retail, RFID supports omnichannel fulfilment in industries like healthcare, logistics, and manufacturing, where tracking and accuracy are critical.
