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M&S to adopt RFID tags for boosting profits

27 Nov '06
2 min read

Radio Frequency Identification (RFID) is not a new technology as it was two-three years back. Major retailers of the world including Wal-Mart, Marks and Spencer, Sears Inc etc, have all gone for this technology that enables ease in management of materials, inventory, logistics and future planning, in profitable terms.

RFID technology is all set to enter Marks & Spencer clothing stores after drawing initial success at trials at a few stores, last year.

Last year, Wal-Mart even had a successful run and tied up with suppliers to despatch RFID tagged goods for easy movement, location and identification helping update its mind boggling inventory management systems with the latest information.

At M&S, about 42 stores have been selected in the first phase while 80 more will join next year. Past ten months successful RFID trials enabled the company to arrive at implementing this scheme for its clothing stores.

Tags are put on mens and women's wear items like shirts, trousers, suits, jackets and casualwear. These tags help not only identify a particular item but also its colour, size and inventory that boosts efficient management of stores and stocks, ultimately leading to the compay's overall profitability.

RFID tagged clothing items are likely to grow from 25 to 49 million items that are received from about 15 suppliers from 20 countries across the world.

After success at shop floor level, the retailer may plan to employ this technology in other sections to boosts its bottom line.

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