Aarti Khoesial

Object of the Future: RFID tags used in supermarkets

Introduction

RFID tags used in supermarkets is not really an object, but it is for sure something that definitily will happen in the future and that will have a huge impact on the supply chain management and also on the customers satisfaction of supermarkets. That is why I find this an interesting topic for the future.

Defenition

Defenition RFID

RFID ( Radio Frequency Identification) is a wireless datacollection technology that uses electronical tags to store data. In those chips a lot and all kind of data can be saved, which makes the RFID technology usefull in verious ways.

Defenition in the context of supermarkets

RFID tags are electornical tags which can be seen as replacements for bar codes.

Current Situation

Current Situation of RFID's used

Currently, RFID is used in numerous ways:
- for tracking ex.libraries
- implants in humans
- implants in pets

Current Situation of RFID's used in supermarkets

Some supermarkets are already experimenting with the RFID tag. For example, in Germany it is already used and British supermarket chain Mark and Spencer uses RFID tags to track their supply. Also, Wall Mart required all their suppliers to apply RFID to all shipments. Some Dutch supermarkets are already experimenting with RFID: Ahold, Schuitema.

Advantages of RFID usage in supermarkets

- no queues: a whole shopping car full with products can be scanned at once, no need to scan each product seperately.
- on a RFID tag more information and information of other kinds can also be storaged or generated. ex. picture of everyone who bought Gillete razor blades.
- quicker and efficienter stock control;scan automatically when shipment arrives, when enters warehouse, leaves warehouse, enter supermarket.This can be done more efficiently than with barcodes because in relation to barcodes, RFID tags offer the following advantages:

     1. RFID tags can be read more rapidly and over more distance

     2. Scanner does not have to point exactly towards the RFID tags

     3. RFID tags take less space

Problems for RFID usage in supermarkets

- costly for the suppliers and as they already have a very good stocking system, the new RFID system will be high investment with little change in profit. But if they want to remain their relationship with the retailers like Wall Mart, they will have to apply RFID tags.
- privacy violation: So much can be done with RFID tags, private information of customers could be gathered without their knowlegde, customers are not even always aware of the presence of a RFID tag or reader. Whenever supermarkets use the information gathered by RFID, they should have permission of the customers, customers should know what information is gathered and where this information is used for. Customers have to trust the retailers.

Conclusion

For supermarkets RFID is certainly a technology that could lower their labor costs, make their stock control more effeciently, manage their supply chain more efficiently and deliver more value to their customers. But the problems are the violation of privacy of customers. A solution may be to remove or disable the RFID tag at the moment the products leave the store.
For suppliers on the other hand, the use of RFID tags is not that profitable, as RFID tags are costly and they already have an efficient system. Furthermore RFID tags can not be used on all goods (for example, tinned products).
As a conclusion, the time when all products in a supermarket will have a RFID tag is maybe within a couple of years, maybe it will take some more time, but it will definitely happen!

Aarti Khoesial

References

1.Dutch supermarket plans RFID trial [1]
2.RFID Journal [2]
3.Defenition Answers.com [3]
4.Spies in your shopping basket[4]
5.Supermarkets can't wait to get RFID in shops [5]
6.Scanning intelligence [6]