While RFID is being used widely as an effective tool in many industries, one industry where it has immediate and direct benefits is the Jewelry sector. Nowadays, many renowned jewelry retailers have turned to automated inventory systems that integrate RFID technology to conduct faster and more frequent inventory counts.
In the diamond and jewelry industry, it is particularly essential to maintain an accurate and reliable stock. Traditionally, most jewelers track inventory on a daily or weekly basis. This is often a completely manual process, which requires handling each jewelry item separately, which is time-consuming and error prone.
This type of inventory tracking can lead to misplacement, loss, or even theft. In a premium business such as this, even a small error or loss each quarter can be significantly expensive, resulting in thousands of dollars in shrinkage that affects the bottom line.
The exercise of manual stock counting also wastes significant time, reducing efficiency and productivity.
This is where RFID technology can revolutionize businesses by quickly and accurately tracking inventory. With the help of RFID, jewelry companies are benefiting from drastic reductions in labor costs and shrinkage that can result in a fast recuperation of the cost of the initial system deployment.
RFID providers have developed complete solutions, including tags, readers, and software designed for monitoring gems and jewelry that automate the inventory process, reducing the amount of time required to take inventory, eliminating shrinkage and freeing up salespeople to help customers.
By managing jewelry items with RFID, individual store and jewelry chain management can not only protect their significant investment in inventory in new ways, they can also garner unprecedented visibility on their valuable inventory.
Inventory shrinkage – both from internal and external causes – has been a very real and intractable problem for jewelry retailers. RFID tagging of individual items goes a long way in protecting and monitoring a store’s valuable inventory, increasing protection and visibility, combined with loss prevention, which are significant parts of the ROI equation for RFID implementations in the retail sector.
While improved inventory management may be what draws a jeweler to RFID, there are many additional benefits to automated inventory systems that can be leveraged to improve the sales process and offer additional services to customers.