With
thousands of our corporate and technology vendor readers
toiling away to create solutions for RFID compliance for
Wal-Mart, Target, and soon others, for many of us there's
a strong sense of "we've seen this all before."
The
early 1990s produced a similar wave of logistics "compliance" requirements
for bar code labeling and EDI (advance ship notices), largely
under the umbrella of the "Quick Response" retail-consumer
goods initiative.
The
parallels to today's RFID activity are remarkable. Here are
a few:
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Then,
as now, large retailers led the charge by requiring
unique identification of pallets and (sometimes) cases,
then with UCC-128 serialized bar code labels. RFID
is needed now, as we've noted here before, because
it's apparently just too hard to scan.
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Operationally, the challenge
was moderate for full pallet labeling, somewhat greater
if you were already picking at the full case level, and
monumental if you were picking in full pallets, but had
to label at the individual carton level. This generally
occurred for suppliers to "flow through" retail operations,
where orders to a retail DC were aggregated to full pallet
quantities, but suppliers had to place a "Mark for" label
on each case for a specific store. |
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There were
significant and related IT challenges. Then, it involved
the tremendous effort to support EDI transactions, as
well as map data to a variety of retailer-specific label
formats. While the "standards" for UCC-128 labels and
VICS EDI formats provided a structure, each retailer's
specific implementation of the standard was different.
We could see something of the same thing now. EPC provides
the basic tag standard, but specific use of the tag bandwidth,
related EDI requirements, and the level of bar code "co-existence" could
create a similar scenario of multiple formats and compliance
requirements for vendors. Fortunately, RFID can largely
piggyback off of the EDI investments - the real IT challenge
will be around enabling core operation systems, and managing
all that data. |
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The goals of Quick Response
included significantly reducing the retailer's time to
receive shipments, enabling flow through processes, increasing
visibility to in-transit goods, and, of course, reducing
pipeline inventories and reducing retail stock-outs.
Sound familiar? |
The
current RFID wave really has to be seen as part of this continuum
that started with Efficient Consumer Response (ECR), then
moved to Quick Response, then CPFR, and now RFID, each with
the goal of improving the flow of information and goods.
In each case, there has been the active hand of the Uniform
Code Council (albeit a little late to the game with RFID,
taking on the Auto ID Center's role), and a substantial amount
of investment for both suppliers to comply, and retailers
(and consumer goods companies themselves) to take advantage
of the new technology. The previous efforts (ECR, Quick Response,
etc.) have all led to important gains - but from my view,
not nearly to the level the initial promotion of the initiatives
promised.
There
are a variety of lessons learned in these first compliance
go-rounds, and we'll cover them in out next issue. But for
those for whom this looks like a revolution - maybe so, but
it sure seems a lot like what we saw in 1992.
Is "RFID
compliance" similar to these earlier bar coding and EDI requirements?
Is RFID what is finally needed to reach the promise of ECR,
Quick Response, etc.? Let
us know your thoughts. |