RFID helps companies target inventory purchasing ensuring that they don’t overstock, often requiring price cuts to off-load bloated inventory levels, or understocking which ultimately costs sales and damages customer confidence due to product not being available. Companies using barcode technology typically experience between 10-25% out-of-stocks vs. those companies using RFID see less than 5%. In fact, due to this increased accuracy, typically businesses require 10%-20% less inventory on hand to meet their goals. And improved management decisions lead to better information allowing fewer inventory distortions. Managers in retail for example tend to increase the number of SKU’s per square foot by 10%-50%, deploying thinner stocks and replenishing more frequently.