New research from the University of Arkansas reveals that apparel suppliers can gain from the use of RFID, particularly in the area of inventory accuracy.
Sponsored by the American Apparel & Footwear Association (AAFA) and GS1 US, the study found the potential for suppliers to experience both top- and bottom-line improvements via increase accuracy, cycle count reductions and minimized chargebacks.
The research, titled “Supplier Return on Investment Use Case Data Collection and Analysis,” focuses on three apparel supplier use cases.
Researchers discovered that one suppliers’ estimates were much higher than the actual shipment count accuracy. With EPC-based RFID enabling audits on 100% of shipments, the frequency of incorrect shipments can be eliminated, creating savings equal to the cost of implementing the RFID system.
In addition to key findings, the research highlights relationship between apparel suppliers and retailers and encourages continued collaboration in the widespread adoption of RFID.