Retail Mandate For RFID

Radio Frequency Identification (RFID) is a data collection technology that uses electronic tags to store the identified information and a wireless reader device to capture and transmit the stored information. The RFID tag is a thin, low cost, wireless device that is capable of transmitting and receiving data. It consists of a computer chip and antenna that can be powered or un-powered, with capabilities ranging from a simple unique license plate to encryption, memory, and read/write. It works with a wireless radio frequency reader that relays the tag information to the management systems.

The important point to be noted is that the data required in the EPC tag is based on EAN.UCC GTIN (Global Trade Item Number) or SSCC (Serial Shipment Container Code) which are the codes contained in bar codes on shipping labels. Notably, bar codes introduce human errors, can encode only limited static data, and do not offer read/write capability and cannot read multiple codes. Scanning bar codes generates periodic and single data packet transactions, while the RFID, by virtue of its simultaneous identification, generates more data in a short period of time that can be managed prior to presenting the data to an existing business application.

RFID has been utilized by companies for many years, but has been receiving attention in retailing only after Wal- Mart and U.S DoD (Department of Defense) mandated the use of RFID to their suppliers to improve the efficiency of their supply chains. RFID has become the milestone in retail industry thanks to the efforts from Wal-Mart and a host of subsequent mandates from other retailers.