RFID- A Ray of Hope for Flattening DVD Sales

Filed in archive Implementation on June 25, 2006

Over the years the sales of DVD has been flattening and studios have been giving greater emphasis to supply chain management to increase their profits from each title. Warner that used to support marketing and sales have also realized the importance of supply chain management. At the Entertainment Supply Chain Academy 2006 conference executives debated over the potential RFID tags have in maintaining the optimum in-stock levels of discs.

Stores equipped with RFID would offer convenience to the customers as they can swipe their loyalty cards at any of the kiosks and locate their desired product. According to one in-store Best Buy, test with videogames revenues increased by 18% and units sold by 14.1%. It has been found that companies can increase their sales by 5-8% by preventing the loss of impulse sales.