Cosmetics Industry

〈 Industry Case Studies 〉

The merits of introducing RFID has long been discussed in the cosmetics industry. supply chain management, inventory visibility, and retail next-generation shopping experience through the fusion of online and offline. By adding RFID to all products, new value is created for both companies and consumers.
First of all, one of the challenges facing sales staff at stores is securing time to serve customers. Due to the nature of the product, customer service requires specialized skills and time. There is a need to reduce the burden of operations such as inventory. Expectations for the introduction of RFID are also increasing from the standpoint of brand protection. The prevalence of counterfeit products, especially online, poor brand value and reputation, leading to economic losses. Management of the supply chain is important. Improving inventory accuracy and visualizing inventory are also major issues. We must promote optimization of inventory levels from the standpoint of controlling excess inventory while maintaining a system that allows consumers to purchase what they want anytime, anywhere, regardless of sales channels such as stores or online.
The advantage of RFID is its ability to read multiple items at the same time, which reduces shortens the work time by approximately 90% compared to the conventional barcode inventory. In addition, by improving inventory accuracy, ghost stocks and out-of-stock items will be improved, leading to the minimization of lost sales opportunities. Furthermore, liberation from ancillary work will ensure customer service time.

By using RFID technology, it is possible to track the supply chain from the time the product is manufactured to the time it is sold. This makes it possible to determine "physical authenticity" and "corporate attitude authenticity," which is expected to reduce economic losses due to counterfeit products and increase trust between brands and consumers.
[Inventory optimization]
As is customary in the cosmetics industry, we always produce more products in order to keep our product line up. In this case, there is a concern about the risk of discarded inventory due to the expiration date of the product. Excessive production, distribution, and disposal of products not only harm the corporate profits, but also burden the environment. By using RFID to optimize inventory, companies can expect to improve their profits and reduce environmental costs.

Types of RFID tags in the cosmetics industry:
Various types of Labels (Small/Large Size, Removable, Moisture Resistant and Metal Compatible etc.)