RFID TECHNOLOGY & APPLICATION IN RETAIL SECTOR:

PRESENTED BY- PALLAB SARKAR PGDM 3RD SEM ROLL-201008

What is RFID? (Radio Frequency Identification)

An ADC (Automated Data Collection) technology that:

Uses Radio-Frequency Waves to transfer data between a reader and a movable item for identifying and tracking the object.

It’s fast and does not require physical sight or contact between reader/scanner and the tagged item.

RFID Basics:Auto-identification.

• Readers- send and receive signals.

Data management solutions.

RFID tags:

Types of Tags:

a) Passive Tags:

b) Active Tags:

Tags -contain chip, antenna, and ID information.

TAGS…..Passive Tags:

Do not require power , Lower storage capacities (few bits to 1 KB)Shorter read ranges (4 inches to 15 feet)

Active Tags :

Battery poweredHigher storage capacities (512 KB)Longer read range (300 feet)

Some RFID readers:

RFID applications:

Manufacturing and Processing:

Inventory and production process monitoring:

RFID solutions are ideal for manufacturers who build several products on a single production line, or manufacture complex or customized products. Assembly line personnel could use an RFID reader to verify which processes have been completed.

Logistics management and tracking:

• Asset Tracking: Assets are automatically registered as they pass through RFID-equipped door.

Lower labour requirement.Reduce Lead-Time: RFID Systems gives a total

visibility of product movement in the supply chain.

Retailing: WHY RFID?

Inventory control of the store,Auto checkout ,Counterfeiting & Theft control/prevention,Reduce Cost & Raise RevenueBoost Customer SatisfactionBrand AuthenticationPromotional Tracking

INVENTORY CONTROL: RFID provides retailers with real-time

inventory information that can help to prevent stock outs, locate stock within a store to avoid ‘shrinkage’ of inventories.

Tags can be given unique identification codes, so that individual products can be tracked & can store properly.

Perishable inventory control-A perishable product has limited useful life (So follow FIFO method).

AUTO CHECKOUT:Auto checkout machines of RFID provide a

mechanism for customers to pay for purchases goods without direct input to the process by the retailer's staff.

A desktop RFID reader connected to the POS system will read multiple items at the same time.

The benefit to the customer is in the reduced checkout time.

Counterfeiting & Theft control:

As items are continuously monitored, Inventory shrinkages including thefts, misplacement of items can be avoided using RFID technology.

Technology has the potential to alert staff when items are being removed illegally.

Used to describe inaccurate inventory counts as a result of customer & employee theft.

REDUCE COST & INCREASE PROFIT:

RFID provides technology that practically eliminates the need for human checking of stock.

Labor reductions will be realized in the following areas of retail operations; receiving, stocking, check out, cycle counting and physical counting etc.

Boost Customer Satisfaction:

RFID enabled shopping carts,Customer can do auto purchase that’s

mean not to required sales person for billing.

No queues: Tags can be read rapidly in bulk.

Brand Authentication:

The unique identification code of the tag contain various information regarding the product & company, that enhance customer experience by providing the quality of the brand.

SWOT Analysis of RFID Tech…

Strengths:

Advanced technology Easy to use High memory capacity Small size

Weaknesses:

High cost per unit and high RFID system integration costs Weak market understanding of the benefits of RFID

technology

Cont…Opportunities:Could replace the bar codeEnd-user demand for RFID systems is

increasingHuge market potential in many businesses

Threats:Ethical threats concerning privacy life

RFID Advantages in Retail:

Tags do not require line-of-sight or human intervention

Tags can be read rapidly in bulk Tags are more durable than bar codesTags contain more information Increase sales due to lower out of stocks Being able to respond more quickly

Disadvantage:

The RFID technology, though very beneficial, is expensive to install.

Small and medium scale enterprises find it costly to use it in their firms and offices.

Reader