Why RFID is the future: Working more efficiently with DENSO

Radio Frequency Identification (RFID) provides new and profitable opportunities for increasing organizational, financial, and operational performance. DENSO explains why retail and logistics industries can benefit from the superior RFID technology.


DENSO WAVE has developed and deployed various RFID readers and solutions, which are used for inventory management, in-store product movements at the POS, for warehouse management or shipping controls. RFID technology will continue to play a significant role in optimizing processes and bringing the benefits of digitization to physical locations. Business Development Manager and RFID specialist, David Walker explains: “Two of the key advantages of RFID are precision and speed. However, there are so many more benefits of the RFID technology, especially in retail and logistics with their complex structures and new challenges.”

Walker refers to the increasing demand of digitization processes in general and during the corona virus pandemic in particular. “New business models are emerging quickly nowadays, hence, supply chains will need to make shifts to accommodate the new demands. RFID is the technology that can help companies, especially retailers and logisticians, meet a new future”, explains Walker.

RFID increases Sales and Profit by saving time and providing greater inventory visibility

As the old saying goes “time is money”, and RFID saves companies, especially in retail, logistics, warehouse management, at the POS, and inventory management a lot of time. “It can be stressful to scan individual items one at a time, which can also lead to human error”, says Walker. “With RFID however, employees can quickly scan an entire area within seconds, rather than having to point at and scan each item individually. DENSO’s RFID readers impress, among other things, with their outstanding reading speed. As we have developed a range of RFID devices, DENSO offers the right one for every purpose.”

RFID implementation can be flexible as supply chains can implement RFID solutions at any point in their processes. “The key benefit of this concept is that when distributing RFID tagged items to different locations, these items do not need to be tagged over and over again. Instead, accurate interpretation of cases and pallets is possible along the way”, says Walker. “The further upstream in the supply chain a product is tagged, the more benefits it garners. Thus, it provides more accuracy”, he continues. Greater inventory accuracy also leads to more customer satisfaction and ultimately to more turnover and profit.

RFID is the present and the future

In the current omni-channel landscape, it has become even more important to have the products customers want or need in stock. Otherwise, it is almost impossible to face – and service against – the ever-increasing competition on the market. The corona virus pandemic has even accelerated the processes in this development.

For instance, when a customer sees an item online and rushes over to the brick-and-mortar store to buy it, only to find that the desired item is not actually in stock even though the “Inventory Management System” says it is. This customer is not likely to visit either the online shop or the brick-and-mortar location again anytime soon. The solution: better stock accuracy with RFID. It virtually eliminates “Out of Stocks” due to poor inventory accuracy. The inventory-tracking technology can offer up to 99 per cent accuracy, ensuring stock is replenished and thus minimize out-of-stock problems. RFID is not only essential for inventory accuracy, however. It can ultimately improve the employee and customer experience, resulting in more sales and lower costs. “If a product is not there, employees cannot sell it. Case studies tell us that in retail the adoption of RFID have increased sales by over ten per cent, whilst most see an increase of five of six per cent,” adds Walker.

All in all, RFID is extremely multifaceted, which makes it so beneficial for numerous industries – from cashless store concepts to supply chain management, and even tracking lost luggage by airlines. “As DENSO’s mobile RFID computers are extremely robust, they can be used ideally for work in the warehouse, but also in stores – and practically any location. Cloud-based mobile applications in combination with DENSO’s RFID devices are the perfect end-to-end solution for any company that wants to optimize its processes”, explains Walker.

The theoretical basis for RFID was already born in 1948. Since then, RFID has been further developed and continues to be a vital area of exploration, especially as it relates to business intelligence in our fast-paced century. Thus, it will be essential in order to work more efficiently now and in the future.

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