How does RFID technology contribute to inventory accuracy?

RFID technology significantly enhances inventory accuracy through automation of inventory tracking processes. Unlike traditional methods that may require manual scanning or data entry, RFID utilizes radio frequency identification tags that automatically communicate with readers. This allows for real-time tracking of items as they move in and out of inventory.

When products are tagged with RFID, the information can be captured quickly and without direct line of sight, which reduces human error associated with manual counting or scanning. This automation streamlines the inventory management process, ensuring more accurate and timely data about stock levels and product movements. Consequently, businesses can make better informed decisions regarding inventory replenishment and supply chain management, leading to improved operational efficiency and reduced costs associated with inaccuracies.

The other options do not directly contribute to the primary advantages of RFID in inventory management. Manual input does not enhance accuracy and can introduce errors, while increasing stock audits and decreasing the variety of items tracked do not capitalize on the full potential of RFID technology to automate and enhance the accuracy of inventory data.