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Merchant Mechanics

One application for RFID that has not been highlighted, or thoroughly investigated, is its use in augmenting in-store consumer observational research. However, it should not be surprising to posit that this technology could represent a major advancement for in-store consumer behavior research.

AUGMENTING CURRENT METHODS Currently, most leading observational research firms utilize videography and in-store observers as the primary means of collecting customer activity data, which is then entered into statistical software for subsequent analysis. While this approach offers the highest levels of detail and specificity regarding customer demographics and in-store behaviors, it is time consuming, requires trained experts, and relatively expensive to implement.

While RFID cannot, at this point, match the details provided by existing methods, value can be added by RFID when used as a supporting technology to obtain top level customer tracking data.

ThisisLondon

“Leading retailers including Boots, Next, Asda and Dixons will meet in London on Tuesday to discuss the issue. They want to tag more to combat the growing problem of shoplifting - or ‘shrinkage’ as it is known in the trade. Latest figures show that shrinkage is costing UK retailers £3.2 billion each year, equal to about £67 per shopper in increased costs and well above the European average of £53. ‘The object of the meeting is to have a huge rise in the amount of radio frequency (RF) tagging technology,’ says Neil Matthews, managing director of tagging company Checkpoint Metro.”

RFID assists in supply chain shrinkage reduction by providing accurate and timely information on stock location. An RFID reader logs stock shipments as they leave the distribution center and upon arrival at a retail outlet. This information is monitored for inconsistancies or tampering.

From a ECR Report on fast moving consumer goods (FMCG) in Europe:

“Recent research reveals the true extent of the cost of stock loss to food retailers and their suppliers in Europe. Each year the industry loses £11.2 billion, of which £5.6 billion is lost through staff and customers stealing. Put another way, the food and FMCG sector is losing 2.31 percent of its turnover or £31 million a day through shrinkage. More worryingly, most companies do not know where, how or when most of their losses occurred: £6 billion of stock loss cannot be accounted for in the sector.”

While these estimates may be liberal, they indicate the uncertainty in contemporary retail distribution methods.  

Zebra Technologies Welcomes FDA Stand on High-Tech Weapons to Combat Counterfeit Drugs

The FDA’s “Counterfeit Drugs Questions and Answers” reports that 10% of the international drug supply is counterfeit with rates as high as 50% in some nations. While the FDA believes the US drug supply is safe, it is working proactively to develop countermeasures with law enforcement agencies like the Department of Homeland Security and the Department of Justice. Its concerns range from the security of “re-imported” (ie Canadian) drugs, recent discovery of counterfeits of drugs like Procrit, and the possibility of bioterrorism.

Proposed solutions include new legislation, further involvement of law enforcement, and technical measures such as RFID. Unique identification of pharmaceutical items would increase the reliability of drug supplies by accounting for all products from the manufacturer to the pharmacy.

“The FDA task force spoke with many leading industry organizations and individuals who believe anti-counterfeiting technologies should be adopted to enhance the nation’s ability to reduce the risk of counterfeit drugs entering the distribution chain and ultimately reaching the consumer. The FDA stated that “authentication” and “track and trace” are two promising types of anti-counterfeiting technologies. Authentication technologies ensure that the drug is real and fall into three categories: overt, covert and forensic. Track and trace technologies include bar code and RFID and can be deployed to help ensure that the real product finds its way safely to the consumer. The report also cites that these technologies are becoming more sophisticated, reliable and inexpensive. … “With issues such as counterfeiting and black market drugs rapidly growing in the U.S., Zebra’s unique technology and combination of multi-layered covert and overt solutions are in-line with the FDA’s anti-counterfeiting report,” explained John Paxton, president of Zebra Technologies. “Our solutions identify and then close gaps throughout the supply chain where counterfeit products are often introduced. This will help protect consumers from fake drugs, as well as help companies avoid losses and brand erosion due to counterfeit and diverted drugs.””

RFID Journal - New Way to Print Ink Antennas

“Carclo, a British maker of high-performance injection-molded products for the automobile, medical and communications industries, has found a way to print conductive inks with a digital inkjet printer. The breakthrough could make it possible to print antennas with conductive inks cheaply and efficiently. ”

Okla. taps TransCore for e-toll technology

“Under the contract, TransCore of Dallas will provide Oklahoma with 620,000 windshield transponders and 10,000 license plate tags for use in the collection system known as PikePass. The agreement fulfills the authority’s tag requirements for the next three years, the company said.”

Intermec RFID U.S.-Canada Border Security Program Wins Exhibitor Best Solution Award at GTC East 2003

“The NEXUS program allows pre-screened frequent travelers between the two countries to use special border crossing lanes. Participants sign up for the NEXUS program at enrollment centers set up adjacent to major border crossings. Successful applicants receive a NEXUS identification card about the size of a credit card. Embedded in the card are a computer chip and a tiny RFID antenna. With that card, a NEXUS program participant can access specially designated crossing lanes. Once in the lane, he or she holds the card up to an RFID reader positioned well in front of the inspection booth. The reader flashes the participant’s photo and information onto a computer screen inside the booth. The inspector verifies that the photo on the screen matches the vehicle occupant and, if all checks out, authorizes the car to proceed. The clearance significantly reduces the time it takes to proceed through the standard lanes. A typical NEXUS inspection takes less then 5 seconds to complete.”

Savi Technology Becomes First FAA Certified Wireless RFID Technology for Use in Cargo Tracking and Security on Commercial Aircraft

“Savi Technology, a leading provider of real-time solutions for asset management and supply chain security, today announced that the U.S. Federal Aviation Administration (FAA) has granted Supplemental Type Certification (STC) to the Savi 602 system, a dual-frequency supply-chain tracking and asset management device based on the company’s EchoPoint(TM) Radio Frequency Identification (RFID) platform. Savi is the first company to receive certification for RFID technology – which transmits data over radio frequency waves – from the FAA.”

Line56.com: Consumer-Friendly RFID

“U.K. retail giant Marks & Spencer is moving ahead with a radio frequency identification (RFID) trial at its store in High Wycombe, Buckinghamshire. The trial, which began on October 13th and will continue for four weeks, involves item-level tagging of clothing including a selection of men’s suits, shirts, and ties.”

Globetechnology

“In one of South Korea’s latest efforts to establish itself as a technology trendsetter, the country’s three telecom giants, major credit card companies and several banks have been working for a year to enable Koreans to pay for everything from groceries to gasoline by cellphone.”