RFID in the Retail Supply Chain

Abstract

The use of RFID (radio-frequency identification) in the retail supply chain and at the point of sale (POS) holds much promise to revolutionize the process by which products pass from manufacturer to retailer to consumer. The basic idea of RFID is a tiny computer chip placed on pallets, cases, or items. The data on the chip can be read using a radio beam. RFID is a newer technology than bar codes, which are read using a laser beam. RFID is also more effective than bar codes at tracking moving objects in environments where bar code labels would be suboptimal or could not be used as no direct line of sight is available, or where information needs to be automatically updated. RFID is based on wireless (radio) systems, which allows for noncontact reading of data about products, places, times, or transactions, thereby giving retailers and manufacturers alike timely and accurate data about the flow of products through their factories, warehouses, and stores.