RFID is a technology that came into existence towards the end of World War II. Radio-frequency identification, or RFID, leverages electromagnetic fields to identify and track tags attached to objects. Though RFID in retail technologies have existed for 40+ years, RFID loss prevention strategies now offer massive opportunities to the retail industry.

How is RFID technology being used by retailers today?

Radio-frequency identification (RFID) in retail tends to be bucketed into two use cases: an anti-theft deterrent allowing for real-time theft prevention, and inventory tracking and management. RFID systems are enabled through electronic product code (EPC) identifiers (usually resembling a small sticker) that are placed encoded into the RFID tags and put on products which emit unique signals that are read by devices called RFID readers; these devices then wirelessly “read” the encoded data in the tag to pinpoint the whereabouts of that specific item.

RFID technologies enhance inventory management by making it easier to manage out-of-stocks and analyze what unique products customers are interacting with, allowing for detailed information on what items are seasonally or geographically more popular.

The power of RFID in retail comes from its specificity because each EPC tag on a product, warehouse pallet, display item, etc., cannot be duplicated; therefore, each item can be more precisely tracked, allowing for associates to scan individual product codes to manage inventory in real-time. Supply chain teams can also place RFID readers on trucks, helping to track if items have been tampered with or gone missing.

RFID-powered loss prevention programs deliver key improvements, including quicker shoplifting detection, exposure of hidden internal theft, and better identification of inventory discrepancies. This type of real-time physical tracking, coupled with the predictive analytical power of an exception-based reporting solution, makes for a powerful loss prevention firewall.

How AI and RFID work together to help loss prevention teams

RFID loss prevention efforts are boosted when AI-enabled EBR solutions are leveraged. Vast amounts of retail RFID data can be investigated and parsed out to identify only relevant tags and build logical links to reduce shrink and improve profits.

Think about a situation where a product is scanned at the exit doors but has not been purchased; the loss prevention team can quickly confirm the missing product and discover the movement of the corresponding RFID tag within the store. Once confirmed, camera footage can be reviewed to see if theft has occurred and a case is started. Additionally, loss prevention teams already using an AI-enabled real-time returns management solution can use RFID data when identifying fraudulent returns by helping trace the path a product took when making it back to the return queue, especially in cases where a product never actually left the store or was never adequately paid for.

Furthermore, when an organization has bought into the concept of total retail loss prevention, using RFID and AI together can help identify hidden areas of loss, such as food waste and inventory inefficiencies, by tracking the movement of items that have been allowed to expire, misplaced, or misused. 

How AI and RFID can help retailers in the fight against organized retail crime (ORC)

With organized retail crime (ORC) causing retailers at least $112 billion annually, any hacks to streamline retail shrink, save margins, and stomp out crime is a boost to loss prevention professionals. RFID loss prevention helps ORC task force teams identify all products that left the store in a grab and run, thereby maximizing the value of the case. Other AI technology allows LP investigators a fast way to link related ORC cases, based on subject description and use of the same car or weapon; retailers can then connect and build cases that meet the $5,000 federal prosecution threshold.

Additionally, retail RFID data helps create more substantive large-scale investigations by enabling more interaction between loss prevention specialists, supply chain teams, store managers, and even law enforcement. It provides deeper insights into the movement of products, people, and problems, enabling a deeper understanding of ORC networks.

Integrating RFID and AI into your loss prevention strategy

Retailers using RFID, combined with AI technology, can revolutionize retail loss prevention by improving the ability to track products and gain more clarity around how and why products are missing in a more efficient and timely manner. Investments in RFID tracking and predictive AI-enabled analytics are helping loss prevention professionals identify theft trends and prevent losses more strategically – deterring the loss of costly products and protecting the safety of customers and associates.

The ROI of RFID and AI loss prevention strategies comes down to dollars saved and hours reduced. RFID allows the majority of a retailer’s distribution chain to be monitored and tracked. Still, when partnered with AI-driven solutions, it can help quickly identify patterns and thwart threats before they occur. Measuring the speed of case resolution before and after employing RFID tags and AI is a great way of seeing a reduction in cases, faster investigations, and an increase in case value.

By turning to solutions like Appriss® Secure, retailers can increase their visibility into fraud and abuse, inventory issues, and ORC activity by integrating data from their RFID system. Thus, product movement becomes another critical anchor point in their Loss Prevention blueprint.

Learn more about Appriss Secure and how your RFID data can be leveraged to identify patterns of fraud and theft, operational issues, training opportunities, discount/loyalty abuse, and so much more.