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As the fashion industry continues its journey toward end-to-end technology, those tiny little RFID tags are proving to have huge benefits.

Used by the fashion industry for almost two decades, RFID—radio frequency identification—has provided transparency, easy returns, inventory visibility and reduced textile waste thanks to more precise production. The wireless technology also reduces the need for line-of-sight identification and increases reliable stock data through central monitoring. Major retail chains and department stores, like Walmart in the U.S., are making RFID compulsory for fashion brands, making RFID a “must-have” rather than a “nice-to-have” tech.

But are enough brands convinced of all the benefits?

Trimco Group, a provider of trims, labels, packaging and store decoration solutions, is one company shedding light on the benefits of RFID, showcasing the possibilities it has opened within business optimization and sustainability impact.

As a source tagging partner to the brands, Trimco has undeniable influence and impact in any RFID project. Some of the benefits the company provides are pre-assessments of RFID needs, safe and accurate data transfers, high-quality production of RFID-enabled tags, stickers, sew-in labels or in-garment tagging solutions and other data products. Additionally, Trimco can provide customers with flexibility in terms of data and traceability, the ability to choose between RFID, NFC, QR codes, or even customized solutions based on their requirements.

“At Trimco, we see our role in the RFID ecosystem to include continuous and streamlined interaction with our professional partner network—upstream, downstream and horizontal—for successful RFID deployments,” said Dennis Sand Eskesen, head of STS & RFID at RFID tags and labeling tagging partner, Trimco Group, in a fireside chat with Sourcing Journal.

Working with RFID for over 15 years, Trimco Group has witnessed RFID’s evolution in many stages of its adoption, seeing how RFID provides an accurate data foundation to make exact strategic business decisions. While RFID comes with a cost, Eskesen encourages companies to see the full picture. RFID is not a short-term investment. As Eskesen put it, “the investment in RFID must be seen as a catalyst for process optimizations, profitability and supply chain shrinkage reductions.”

Data gained from implementing RFID can also be used in monitoring and transparency reporting on sustainability measuring points. In fact, implementing RFID technology can support brands’ sustainability strategies by reducing overstocking and over-purchasing.

“The future of fashion is, without a doubt, digital. Sustainability strategies are waiting in line to be implemented, with the pioneer being the much-discussed digital product passport. RFID can be one of the technologies to support the requirements,” Eskesen added. “In many ways, RFID is already a passport for your garments or shoes, and connecting that data with different algorithms to support different KPI’s or to serve different goals, such as sustainability goals or transparency across the supply chain, is much easier and faster.”

Additionally, as the industry marches toward the all-important holiday season, inventory management is crucial.

“There’s nothing more annoying for a customer than the “out-of-stock” disclaimer when trying to purchase,” says Eskesen. “And on big sales days like Black Friday and Cyber Monday, missing stock basically means missed sales. Here RFID is demonstrated as the technology to use.”

To view the fireside chat, click the video above.

Read more about Trimco Group at trimco-group.com.