Today’s companies are constantly looking for ways to improve their sustainability and reduce their carbon footprint. After all, research shows that consumers are more concerned than ever about the environmental impact of their purchasing decisions. For example, his 60% of customers say they are willing to pay more for products with sustainable packaging, so companies are getting in touch with changing consumer preferences. is most important to consider.
One industry that has a particularly negative impact on the environment is retail. Textile production accounts for about 20% of the world’s water pollution and 10% of global carbon emissions, and this figure is expected to get even worse in the future. In fact, some predict that the industry’s negative impact will double by 2030.
The solution may be RFID chips, a small but powerful technology that has already been developed and is in use.
What RFID technology brings to the retail industry
RFID stands for “Radio Frequency Identification.” This is a technology that uses radio waves to read information stored on antennas (most commonly found on stickers or tags in retail stores) without requiring physical contact or line of sight. RFID technology has been around for decades and is used for purposes such as car keys, employee ID, security access cards, and billing, but retailers are increasingly integrating this technology into their operations. We’re starting to find exciting new ways to do things.
One of the most environmentally destructive aspects of the retail industry is the supply chain. From production in the factory to transportation to the store, each part of the supply chain impacts the environment and fuels the disruption of entire industries. As a result, companies are beginning to find ways to understand the consequences of each stage of the production and distribution process, allowing them to paint a more complete picture of their carbon footprint.
RFID technology and sustainability
RFID technology is key for retailers to increase the sustainability and efficiency of their supply chain management. Using RFID technology, retailers can gain a deeper understanding of their products with end-to-end visibility throughout the product lifecycle, from the time it is manufactured to the moment it leaves the store and leaves the customer’s hands. , giving you more control and allowing you to adjust your processes accordingly. Necessary for maximum efficiency.
A key insight that RFID technology provides is whether or not a product will be successful. Analyzing data on the number of products moving in and out of distribution centers and stores provides a snapshot of demand for that product. If this data reveals that a product is not selling well, retailers can order or produce less of that product to reduce waste at the source. In this way, RFID technology can help retailers better manage inventory and ensure that resources are used only on products that sell.
One of the other environmental benefits of using RFID technology for inventory management is that it reduces retailers’ use of transportation, which reduces a significant source of greenhouse gas emissions. Especially in this era of fast fashion, most retail products are produced overseas and shipped thousands of miles to their destination. The planes, ships, and trucks used to transport these materials consume large amounts of fossil fuels and have a very negative impact on the environment.
Businesses can also reap financial benefits by effectively incorporating RFID technology into their operations. For example, retailers can use RFID technology to curb theft in their retail stores. Given that retail theft has reached more than $100 billion, a small investment in RFID technology could put even more money back in retailers’ pockets. After all, some of his RFID tags are as cheap as his 4 cents each, so it could be significantly cheaper than the potential loss.
Thankfully for those concerned about the potential impact of the technology itself on the environment, the materials used in RFID chips are themselves sustainable. A standard RFID tag is made of a small piece of metal and polyethylene terephthalate (PET) plastic, both of which are recyclable materials. Efforts are also being made to create more sustainable RFID tags using sustainable materials such as paper, allowing RFID technology to have an even more positive impact on the environment.
RFID tags may be small, but their potential to transform sustainability in the fashion industry cannot be overstated. This technology allows retailers to better manage inventory and make adjustments as needed to reduce waste at the source. The insights provided by RFID technology are a big step toward providing retailers with the information they need to make more sustainable operational decisions.
Joseph Schlossberg is Vice President of Global Sales. Sourcing Solutions International. He began his industry career shortly after earning a degree in business administration from Seton Hall University in 2014. Sourcing Solutions International is a unique supplier of both hangers and packaging for the apparel retail industry. SSI currently has production in China, Bangladesh, Vietnam, Indonesia, Cambodia, India, and El Salvador, and is also working on expansion in regions such as India, Africa, the Middle East, and Europe. Sourcing Solutions International currently proudly partners with the largest and most well-known retailers and apparel brands to provide paper/plastic/hybrid clothing and accessories with their hangers, labels, hangtags, packaging, and RFID solutions. Masu.
