RFID Technology Solves Major Challenges of Food Retailers.
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RFID (Radio Frequency Identification) technology is creating a significant transformation in the food and beverage industry. This technology is in rising demand as it solves major challenges faced by food retailers like maintaining an accurate and efficient supply chain, minimizing food waste, and maintaining product freshness.
What is RFID technology?
This technology works like a smart barcode system, using radio waves to track items without the need to scan directly. It has three major parts: tags (stores item information), readers (retrieves information), and software (processes data). This helps businesses track inventory, deliveries, and more, boosting efficiency. In food industries, it is used to source raw materials and distribute final products.
RFID technology bridges the gap between the physical and digital worlds by assigning each physical item a unique digital identity. This enables real-time visibility at the item level, reducing waste, improving efficiency, promoting sustainability, and enhancing financial performance.
Challenges Faced by Food Retailers
About 63% of CEOs see supply chain issues as a major threat to growth leading to $163 billion in annual losses from discarded inventory. The other big challenge is food waste, amounting to 1.05 billion tons globally wasted annually.
Traditional food inventory management involves extensive manual procedures, which are substantially prone to human error. Poor business decisions often result in poor availability of the right stock, poor expiry management, lost sales, and increased waste. Intelligent RFID-enabled labels provide digital visibility, empowering retailers with fast and accurate data.
Building Consumer Trust
The technology of RFID offers product authenticity and better packaging communication. By combining RFID tags with QR codes, brands can provide traceability from farm to fork. Adopting intelligent RFID labels helps food retailers stay ahead in an evolving market landscape.