RFID Boosts Supply Chain Efficiency in Spain’s Apparel Industry

In the clothing industry, there are several problems that have always been a headache for companies: inaccurate inventory, unclear flow of goods, high labor costs, and slow delivery process. In order to solve these troubles, many Spanish clothing companies have begun to use a technology called UHF RFID.

How does RFID help?

In early 2024, a Spanish clothing brand used a new generation of RFID tags. This tag can record various information such as the product number (SKU), origin, and production time. It’s like giving each piece of clothing a unique name, which can be “called out” all the way without confusion.

In factories, warehouses, and distribution centers, they will use some RFID equipment, such as fixed readers, handheld scanners, and even “RFID tunnel machines.” When clothes pass through these devices, there is no need to unpack or search, the machine can automatically “scan” the label to know which goods are, when they came, and whether there are any errors.

With these devices, the warehouse’s work efficiency has increased by 30%. Picking, packaging, and shipping are faster, and human errors can be avoided, such as sending the wrong goods or missing goods.

Why are more and more Spanish companies using RFID?

At present, almost 70% of Spanish textile companies have used RFID. According to a market research organization (Grand View Research), by 2028, the global retail industry’s investment in RFID technology will exceed US$9.5 billion.

These figures illustrate a trend: not only the clothing industry, but other industries have also begun to see the benefits of RFID, especially in inventory and logistics.

4 major benefits of RFID

1. Cost savings
Knowing the status of goods in real time through RFID can greatly reduce warehouse space waste, transportation errors and manual operations, thereby saving expenses.

2. Quick launch
The current RFID system is already very mature. Devices such as antennas and readers can be installed overnight without stopping work and can be used the next day.

3. Clearer inventory
You can always know how much goods are in the warehouse and where they are placed. Not only can it prevent the loss of goods, but it can also make purchase or delivery decisions faster.

4. Reduce out-of-stock or backlogs
Through the RFID system, it is possible to find out which products are hot-selling and which are slow-selling in time, so that products can be circulated more reasonably and avoid missing sales opportunities.

The future of RFID in the clothing industry

Now, more and more clothing companies have realized the value of RFID and have launched this technology. It can not only help companies reduce manual work and improve inventory accuracy, but also optimize the entire supply chain process.

In the future, with lower RFID costs, smaller equipment, and smarter systems, this technology will become an indispensable “good helper” in the clothing industry. Whether it is the brand, distributors or stores, they can all benefit from it, making the entire retail experience smoother and more efficient.