Solutions to the Challenges of Implementing RFID Technology in Apparel Retail Industry

Abstract

Apparel retail brands experienced multifaceted landscape of RFID (radio frequency identification) technology, which reduced stock-outs, labor costs, inventory costs, visibility, and customer satisfaction through self-checkout. However, RFID technology in apparel retail faces several challenges, including cost barriers, integration complexities, technological limitations, employee resistance, and privacy concerns. This study aimed to provide solutions to RFID implementation for apparel retailers and achieve overall business excellence through a value-added customer-centric approach by overcoming all prevailing barriers. Throughout this journey, this study identified the significance of RFID’s omni-channel fulfillment ca-pabilities in addressing critical issues such as inventory inaccuracies, supply chain inefficiencies, and cus-tomer satisfaction. To address and overcome these challenges in the implementation process of RFID technology in apparel retail sector, a wide literature review and empirical research were conducted to propose comprehensive insights to overcome these challenges. For apparel retailers, the best item to select for RFID deployment is a passive UHF RFID tag, which is best suited to price tickets or hangtags. Recommendations included technological advancements, managerial strategies, best practices, and cost-effective measures to facilitate the integration and ideal utilization of RFID technology. An RFID-standardized ecosystem has a significant role in guaranteeing the interoperability of items irrespective of the manufacturer or user involved. These standards provided a foundation for enterprises to build supplemental items, including tags, readers, software, and accessories.