The impact of RFID technologies on inventory accuracy in the apparel retailing: Evidence from the field

In this paper, we assess the level of inventory accuracy that can be reached by adopting radio frequency identification (RFID) technology for inventory count operations in the fashion retailing. Thanks to an in-field implementation, we carried out two series of RFID inventory counts and compared the resulting accuracy level with that obtained exploiting the traditional barcode (BC) technology, so as to highlight the main pros and cons of the RFID adoption. As a general conclusion, the findings from the experimental campaigns and the analyses carried out suggest that RFID inventory counts are more reliable than BC ones. Moreover, under several circumstances, RFID allows detecting out-of-stock situations that are not evident when using either the BC technology or the inventory data stored in the company’ information system. From those findings, a trend of the inventory accuracy as a function of the time required for RFID inventory counts is empirically derived. Such a trend can be exploited in practical cases to estimate the accuracy level achievable with inventory counts depending on the time dedicated to those activities.