Datascan on MarketScale | Retail Inventory Management Content

Barcode and RFID inventory counting solutions for global retailers

Datascan provides barcode and RFID inventory counting solutions for major retailers operating in more than 42 countries. Their MarketScale channel covers inventory accuracy, cycle counting methodology, and the business case for outsourced physical inventory programs. Retail operations and supply chain teams use this content to evaluate inventory management strategies and technology partnerships.

44 episodes

Channel Brief·Datascan · 44 episodes

Updated Jan 12, 2024

Inventory Accuracy and RFID Drive Retail Competitiveness

Datascan argues that accurate inventory counting and RFID adoption are no longer optional: they determine whether retailers survive omnichannel fulfillment, loss prevention, and customer retention in a post-COVID market.

Datascan's thesis is that retail has been fundamentally reshaped by omnichannel demand (BOPIS, ship-from-store) and organized theft, making inventory visibility a competitive necessity, not a back-office function. The channel proves this by anchoring discussions to real retail pain: Target's $500 million shrink impact, Walmart's success tagging 80 percent of apparel with RFID, and the barcode reality that inventory accuracy averages only 35 percent when counted once or twice per year.

Drawn from Retail Roundtable: How Serious is the Retail S… and 2 more →

“If you're doing barcodes once or twice a year, your average inventory record accuracy before you count is around 35%.”
Herb Billings, VP of Technology Strategy, Datascan

By the numbers

35%

average inventory accuracy with barcode systems before annual recount

80%

Walmart apparel inventory tagged with RFID

$500M

Target's projected shrink impact on profitability

$.04–.08

cost per RFID tag, declining up supply chain

What the channel argues

DataTarget projected a $500 million profitability impact from inventory shrink.→

DataWalmart has tagged over 80 percent of apparel with RFID and is expanding to sporting goods, electronics, and toys.→

DataRFID implementation costs $.04–.08 per tag; cost decreases further up the supply chain.→

InsightRetailers using RFID can count inventory continuously rather than biannually, dramatically improving record accuracy.→

InsightBOPIS and omnichannel fulfillment have transformed retail stores into de facto distribution centers, requiring real-time inventory visibility.→

What you'll learn

•Why barcode-only inventory systems fail omnichannel retail: stores that count annually operate at 35 percent accuracy, causing stockouts and unfulfilled orders.

•How RFID solves four concrete retail pain points: inventory record accuracy, reduced manual labor, anti-theft, and display compliance.

•What drove large retailers like Walmart to mandate supplier-level RFID tagging and why this cascades cost benefits across the supply chain.

•How organized retail crime, internal theft, and supply chain disruption have made loss prevention an inventory management imperative, not a security afterthought.

What to do about it

→Audit your current inventory counting cadence and accuracy baseline; if you count biannually with barcodes, prioritize a pilot RFID deployment in your highest-shrink or highest-velocity category.

→Map the total cost of inaccurate inventory: lost sales, excess safety stock, customer dissatisfaction, and operational chaos; use this ROI case to justify RFID investment.

→If you operate BOPIS or ship-from-store, establish real-time inventory visibility across all locations (sales floor, backroom, in-transit) as a non-negotiable operational requirement.

Who and what shows up

Adrian Thomas

President and CEO, Datascan

Frames inventory counting and accuracy as foundational to retail competitiveness; Datascan has been in inventory counting for 50 years.

Herb Billings

VP of Product Strategy, Datascan

Provides technical depth on RFID history, ROI, implementation barriers, and specific cost figures; authored the '35 percent accuracy' baseline and identifies four core RFID drivers.

Max Dunn

Manager of RFID Solutions, Datascan

Traces RFID evolution over two decades and explains how tag costs and hardware capabilities have matured to support item-level tagging.

Walmart

Major retailer

Serves as proof point: over 80 percent of apparel is RFID-tagged and the company is expanding RFID to sporting goods, electronics, and toys.

Target

Major retailer

Cited as facing $500 million profitability impact due to inventory shrink, illustrating the scale of loss prevention challenge.

Questions this channel answers

What are the four main drivers for retailers to implement RFID?

Inventory record accuracy, reduced manual labor time around inventory management, anti-theft, and display compliance.

Keeping Count: What are the main drivers prompting retai… →

How does omnichannel retail (BOPIS and ship-from-store) affect inventory accuracy requirements?

These models have transformed retail stores into distribution centers; accurate visibility on both sales floor and in backroom is now critical to prevent stockouts and unfulfilled orders.

The Importance of Inventory Accuracy: Highlight 2 →

Why is RFID outpacing barcode systems in modern retail?

Barcode systems, even at best, achieve only 35 percent accuracy when counted once or twice annually. RFID enables continuous, real-time counting and supports omnichannel operations.

Keeping Count: What are the main drivers prompting retai… →

What challenges do metals and liquids pose for RFID implementation?

RFID tags struggle with metals and liquids, though workarounds exist; retailers must evaluate whether RFID is the right fit for their product mix and use case.

Keeping Count: How to Successfully Deploy RFID in Retail →

How does inventory inaccuracy damage profitability?

Bad inventory management leads to lost sales, customer dissatisfaction and lost lifetime value, higher safety stock costs, operational inefficiency, and supply chain disruption.

Herb’s Hot Hot Takes: The Five Effects of Bad Inventory … →

Best place to start

Keeping Count: What are the main drivers prompting retailers to implement RFID?Names the four core RFID use cases and anchors them to the 35 percent accuracy baseline; establishes the whole thesis in one episode.

Getting to Know Datascan and the Retail LandscapeIntroduces Datascan's 50-year mission and frames inventory accuracy as foundational to modern omnichannel retail competitiveness.

Topics:RFID technology and implementationInventory accuracy and countingOmnichannel retail (BOPIS, ship-from-store)Loss prevention and organized retail crimeSupply chain visibility and demand planning

Themes:Inventory visibility as competitive moatOmnichannel fulfillment demands continuous countingRFID cost and ROI are now measurable and achievable

Industry context

Retail organizations are investing in RFID and AI-driven inventory systems to address structural gaps in omnichannel accuracy, with market forecasts showing sustained growth as shrinkage and out-of-stock costs remain substantial industry-wide challenges.

RFID Inventory Management System Market Size Continuously Growing (linkedin.com) ↗How AI with RFID Technology is Changing the Retail Inventory Management (rfidjournal.com) ↗