Item-level tagging (or

RFID Radio-frequency identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects. An RFID system consists of a tiny radio transponder called a tag, a radio receiver, and a transmitter. When tri ...

item-level tagging, also known as ILT) is the tagging of individual products, as opposed to case-level and pallet-level tagging. Item-level tagging is used to track individual items in order to better control

inventory Inventory (British English) or stock (American English) is a quantity of the goods and materials that a business holds for the ultimate goal of resale, production or utilisation. Inventory management is a discipline primarily about specifying ...

, by providing retailers with the ability to tag individual items on the retail floor. Previously, RFID tags were used to track

pallet A pallet (also called a skid) is a flat transport structure, which supports goods in a stable fashion while being lifted by a forklift, a pallet jack, a Loader (equipment), front loader, a Jack (mechanical), jacking device, or an erect cra ...

s of

merchandise Merchandising is any practice which contributes to the sale of Product (business), products ("merch" colloquially) to a retail consumer. At a retail in-store level, merchandising refers to displaying products that are for sale in a creative w ...

, rather than individual items, through the

supply chain A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...

. With the use of printed RFID tags, retailers are now able to track inventory at the item level, scan the tag, and know the location. Retailers are pushing for tagging each individual item. In fact, large companies like

Wal-Mart Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores in the United States and 23 other ...

, JC Penney, and Dillard’s are issuing

electronic product code The Electronic Product Code (EPC) is designed as a universal identifier (using an idiosyncratic numerical code for each different commodity) that provides a unique identity for every physical object anywhere in the world, for all time. The EPC s ...

mandates, where they request their suppliers to comply with these EPC protocols. In 2005, it was required that the suppliers use

tagging at the pallet and case level, but now it is required that they tag on the item-level as well. The reason why is it so important for them to implement this is because they want to avoid losing a sale over an out-of-stock item, which they believe accounts for a big part of their losses. Also, if they know where an item is at all times then it easier to move it to where it is supposed to be. By doing this they reduce transportation costs, they gain added shelf visibility and it drives down wasteful

overstock Overstock, excessive stock, or excess inventory arise when there is more than the "right quantity" of goods available for sale,Crandall, R. E. and Crandall, W. R.Managing Excess Inventories: A Life-Cycle Approach in ''The Academy of Management Exe ...

Benefits

Item-level tagging provides a quick, automated, cost efficient and accurate way to track inventory through the

and in the retail environment. Benefits to item-level tagging include better visibility and control of inventory and an expansion of customer experience capabilities. Item-level tagging is critical in order to determine how much inventory is on the floor, what sizes and colors need to be restocked and what inventory is available in stock rooms. Other benefits include the ability to keep a fully stocked floor, increased time and labor savings, increase inventory accuracy, and reduction in clearance items due to incorrect inventory and excess ordering.

Industries Using Item-Level Tagging

* Apparel * Consumer goods * Electronic goods

References

{{Reflist Inventory