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RFID: Miracle cure or a waste of time?

2.2.2019
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Mads Kibsgaard, Standards & Relations Manager, GS1 Denmark
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When RFID first appeared in the retail sector about 10 years ago, some touted the technology as something akin to the Lucky Luke character Doc Doxey’s magic elixir, which supposedly cured everything. As with Doc Doxey’s elixir, that turned out not to be the case. But that does not mean RFID is insignificant: RFID pays off, as the Moods of Norway case demonstrates.

No miracle cure at Moods of Norway, but…

Despite failing to live up to its status as a miracle cure, RFID has still managed to improve supply chains in several industries – including the textile and apparel industry.

One example is Moods of Norway, the Norwegian clothing brand and retailer, which has experienced significant improvements in internal logistics, inventory management, and e-commerce by using RFID tags.

In 2013, Moods of Norway and GS1 Norway launched a pilot project that was so successful that in August 2014, they began a full-scale implementation of RFID across all the chain’s stores. This work was completed by the end of September that same year, and they have been further developing the system – and reaping the benefits – ever since.

100% accurate inventory overview – in a fraction of the time

Among the results, Moods of Norway’s stores found that they could now check inventory in one hour – something that previously took 30 hours. As a result, the stores can now check their inventory status every week.

In addition, the introduction of RFID has meant that stores now experience near 100% inventory accuracy. By comparison, stores without RFID typically experience an accuracy of less than 70%.

The webshop became possible

The increased control over inventory also made it possible for Moods of Norway to open up online sales from individual store inventories. Previously, this would not have been possible, as the individual stores in the chain did not have sufficient knowledge of their stock.

Customer service benefits for large and small e-retailers

Moods of Norway is a great example of a company that has seen significant improvements after introducing RFID into its supply chain. Moods of Norway is a larger company, but size is not a criterion for benefiting from RFID. In general, the increased inventory accuracy that RFID provides benefits both large and small businesses, especially in the context of e-commerce.

“Fast delivery times for smaller shipments are what customers demand, and that requires a rock-solid, real-time overview of your inventory – and here, RFID gives companies the necessary foundation to ensure an optimal customer experience,” says Mads Kibsgaard, Supply Chain Specialist at GS1 Denmark.

Get started with your own RFID project

"GS1 provides standards for how RFID tagging should be implemented, and as a member organization, we are always looking for initiatives that create value for our members. That is why we are now focusing on the use of RFID across various industries, with the goal of informing our members about the opportunities that RFID brings," says Mads.

"We are looking for members who would like to explore the use of RFID within their own organization. We encourage members to reach out to us if, for example, they are interested in an RFID project, need guidance on the subject, or simply want to hear more," Mads concludes.

Want to know more?

Contact Mads Kibsgaard by phone at 39 16 90 08 or via email mki@gs1.dk.

Read more about RFID

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