After the last logistics lecture, the RFID technology came to my mind, though that is a good idea to get deeper in this topic in order to show how a big company like Zara uses this system.
Before starting to explain how Zara makes profit from this technology and the advantages that it provides, I recommend you to visit the post where our partners explained how the RFID exactly works and an overview of the logistics of the Inditex group
Inditex started using this technology in Zara, getting the total implantation in 2016. They expect the incorporation of the RFID progressively to the rest of the brands of the group.
Inditex uses the RFID for the identification of each item of clothing through radio frequency, incorporating a chip inside the alarm at the logistic centres of Inditex. After that, the company is able to identify where is each item during all the stages of the supply chain.
I suggest you to watch the video below in order to understand how useful is this system in each stage of the supply chain.
Basically, the advantages that this technology provides are:
- The location of each item in all the stages of the supply chain.
- Every shop is able to have the precise information of the inventory that allows to replenish immediately the stock in the shelves or to ask for new inventory to the logistic centres.
- The customers are able to know in which establishment is their desired item of clothing through the web page and the app.
- RFID allows the store of more data than other identification systems.
- The staff is able to do and easy inventory.
- There is a reduction in the number of mistakes in the product data.
As a conclusion the technology RFID for Zara is synonym of agility, simplicity, information, confidence, precision and speed.