Friday, April 30, 2004
Bar Codes: The beginning of the end?
RFID tags have been in the news for a while now as have Wal-Mart's plans to run trials using the technology. So, it came as no surprise to read about Wal-Mart's dry run with the technology. Seven stores and a distribution centre in Dallas are participating.
The RFID tags contain a chip that is imparted with information. In a backshop retail environment, the tags will contain the details of what is in a case or on a pallet of goods. Rather than have a worker with a handheld scanner logging in barcodes, the system will let a computer system use a radio signal to log the goods as they arrive at the loading dock.
The tags can also be used in the manufacturing process, which Dillman said can help suppliers become more efficient, and the tags will help companies on both ends know where their products are at all times. Wal-Mart says the tags will help reduce theft and counterfeiting, the latter particularly affecting prescription medicines.
Wal-Mart is beginning with 21 products and 8 suppliers, including Gillette, Hewlett-Packard, Johnson & Johnson, Kimberly-Clark, Kraft Foods, Nestlé Purina PetCare Co., Procter & Gamble and Unilever. Wal-Mart claims that at least 100 suppliers will come on board by Jan, 2005. This is a crucial dry run because I believe Wal-Mart can make or break this technology. The retail behemoth alone has the scale to drive the cost of RFID chips to below 5 cents, at which point hopefully, everyone else will jump onto the bandwagon.
The RFID tags contain a chip that is imparted with information. In a backshop retail environment, the tags will contain the details of what is in a case or on a pallet of goods. Rather than have a worker with a handheld scanner logging in barcodes, the system will let a computer system use a radio signal to log the goods as they arrive at the loading dock.
The tags can also be used in the manufacturing process, which Dillman said can help suppliers become more efficient, and the tags will help companies on both ends know where their products are at all times. Wal-Mart says the tags will help reduce theft and counterfeiting, the latter particularly affecting prescription medicines.
Wal-Mart is beginning with 21 products and 8 suppliers, including Gillette, Hewlett-Packard, Johnson & Johnson, Kimberly-Clark, Kraft Foods, Nestlé Purina PetCare Co., Procter & Gamble and Unilever. Wal-Mart claims that at least 100 suppliers will come on board by Jan, 2005. This is a crucial dry run because I believe Wal-Mart can make or break this technology. The retail behemoth alone has the scale to drive the cost of RFID chips to below 5 cents, at which point hopefully, everyone else will jump onto the bandwagon.
