Thanks Laurie for the post. RFID technology will be a perfect feedback path between retailers and customers and this will also help store owners in improving inventory accuracy. I head some of the credit card companies (American Express, MasterCard, Visa) issuing RFID enabled credit cards this will encourage the customers to go for shopping by saving their billing time.
The RFID technology has been broadly used in Europe and Asia but pretty much limited to certain applications. Would we see common use in stores anytime soon? The cost still restricts its adoption across the board plus we don't need additional security similar to that built in credit card with a RFID chip on it.
Interesting stuff. From the business perspective, I definitely see how valuable the technology is. The lack of end-to-end visibility is a common complaint among supply chain companies so this kind of data is a huge step in the right direction. The inventory management possibilities are endless. I'd like to see how this develops.
As a consumer, I hate the idea that someone or something is gathering data on me. I guess the problem is, targeted marketing and advertising just adds to the overall advertising noise, rather than making advertising in general more meaningful.
The perfect application of targeted advertising would be like a scene in the movie "Minority Report." As Tom Cruise walks through a corridor, all the ads that appear--holographically--address his character directly. If gathering data on me means not dealing with cars I'll never drive; clothes I'll never wear; beverages I'll never drink; and stores I'll never shop in, then I guess I'd say "bring it on!"
The local libraries are starting to install RFID technology to keep track of books at the shelves and at the checkout. While this is improving productivity, it is also cutting costs. Then the question remains, what happens to the jobs of America when we become more and more technologically sound?
Hello hwong. You bring up a good point. The workers will need to educate themselves to take on new responsibilities. The old jobs will have been replaced with high tech equipment that someone will need to know how to operate and maintain.
Oh Barbara, you would be the perfect consumer for the use of behavioral targeting, an online technology that relies on ad tags and cookies in browser windows to target advertisements to consumers based on likes and dislikes. The advertising industry often uses the movie "Minority Report" to describe behaviorally targeted ads.
The industry also insists consumers would see less ads because behaviorally targeting the ads would give consumers the right amount of information without the ad networks having to serve up an enormous amount of ads to get consumers to convert, which means to complete the purchase or download the document.
Oh Barbara, you would be the perfect consumer for the use of behavioral targeting, an online technology that relies on ad tags and cookies in browser windows to target advertisements to consumers based on likes and dislikes. The advertising industry often uses the movie "Minority Report" to describe behaviorally targeted ads.
The industry also insists consumers would see less ads because behaviorally targeting the ads would give consumers the right amount of information without the ad networks having to serve up an enormous amount of ads to get consumers to convert, which means to complete the purchase or download the document.
Putting privacy concerns aside for now, there are several other reasons why RFID adoption has progressed slower than expected, especially in the US.
The main reason is the cost of tags, which can vary depending on a number of factors, including whether the tag is simply embedded on a label or encased in a material such as plastic, passive tag or active tag, and the amount of memory required on the tag, to name a few.The more commonly used and basic passive RFID tag (96 Bit EPC inlay) embedded on a label that is used in retail and in the supply chain can typically cost 7 to 15 cents, and of course can range depending of volume.The costs can increase above 15 cents for low and high frequency tags.This does not include the costs involved for companies to provide RFID tags on products within the supply chain whether they are manually applied or systematically applied.So for instance, companies that manufacture and/or distribute high-end electronics retailers or pharmaceuticals, the costs of the tags are easily absorbed, but for companies selling, let’s say toothpaste or pencils, the costs can dramatically affect profit margins. So, if you are at a store that sells a variety of products, both expensive and inexpensive products, at this point it would not be feasible to expect that all the items sold in the store would have RFID tags and would require multiple processes in how to handle these products.
Another main reason for slower than expected adoption is the overall readability of the lower cost passive RFID tags.For example, plastic and paper products read well, while liquid and metal products do not.This lack of “universal” readability is problematic , especially for companies looking to put a more automated RFID process within their supply chain.
In order to have a wider adoption rate for RFID use, tags will need to be more read easily across a wide variety of product mixes and the costs need to be under 1 cent per tag.I do expect however that we will eventually get there. The positives of using RFID technology greatly outweigh any negatives.
Thank you Dave for your insight. You make several good points about the cost of tags and readability. But I've been hearing that same song for more than six, maybe seven, years. I can point to countless articles in the early 2000s where I wrote those very word ... 1 cent tag, problems with readability, (blah, blah, blah). What's the solution? How do companies manage deployment while keeping costs low?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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