Here are a few of the top stories on RFID, bar code data collection, and supply chain IoT over the past couple of weeks.
Alibaba Unit has been Taking RFID Mainstream
While there is growing adoption of RFID technology in the retail sector in the US, China might be much father along.
That with a report this week that the logistics arm of Chinese on-line retail giant Alibaba, called Cainiao, has sold over 100 million RFID tags in less than two years since the program launched in April 2021.
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| All that because the QR codes can contain a lot more data – or a web link to provide additional information, than a UPC. |
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To ensure accuracy, Cainiao has invested in optimizing the RFID tags, readers and softwarw, which in turn enables a larger-scale commercial application of RFID technology in logistics and supply chains. For example, the company has developed customized RFID tags that displayed improved identification sensitivity, especially in challenging scenarios involving metals and liquids.
Cainiao says it has developed industry-specific solutions catering to sectors such as fashion, food. and logistics to better support business supply chain management. For example, in the food sector, RFID tags can be embedded in cartons to increase supply chain visibility and allow businesses to make dynamic decisions based on real-time data and analysis. In the fashion industry that is often characterized by thousands of SKUs, businesses face pressures in inventory management.
Cainiao says its RFID solutions empower businesses with supply chain digitalization and full-chain visualization from factories to warehouses and stores.
Dr Ding Hongwei, vice president of Cainiao Network, says “RFID is still in its infancy,” but notes the company was working to refine its core technology and enhance the advantages of RFID products and solutions in order to drive the overall digital transformation across industries.”
This article was based on a report from Parcel and Post International.
2D Barcodes will Revolutionize Retail as we Know It
As we’ve reported before, the traditional UPC bar code is being phased out in favor of a 2D QR code for use at POS and beyond.
The new barcodes will unlock reams of on-line extras for consumers and revolutionize inventory management for retailers, according to a recent on-line article at Axios.com.
Scanning the QR codes with a smart phone will provide an array of information, such as potentially the field where something was grown, the factory where a garment was sewn, the sustainability practices of the company that made it, or even washinf instructions.
Axios notes that the new codes can identify what foods are approaching their sell-by date — and maybe offer consumer discounts for purchases before they expire.
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All that because the QR codes can contain a lot more data – or a web link to provide additional information, than a UPC.
While some retailers have already embraced the QR codes, the standards organization GS1, is pushing for a complete transition by 2027, when the UPC codes would become no longer scannable.
Perry Ellis Benefits from Use of RFID In-Store
Fashion brand and retailer Perry Ellis is leveraging RFID in its supply chain and retail store operations.
In a story that appeared in Retail TouchPoints, the fashion brand says that 95% of Perry Ellis products are tagged with RFID at its suppliers’ factories. Advanced RFID capabilities have been implemented in 40 stores and the retailer is in the process of rolling them out chainwide.
As usual in these RFID retail stories, it’s all about inventory accuracy.
At the time of sale for any product, the built-in integration with our store platform uses the RFID system to tell us what’s in the inventory so it knows it’s not lost or missing,” said Sandeep Baghel, VP of Information Systems at Perry Ellis in an interview with Retail TouchPoints.
The use of RFID will help Perry Ellis gain better insight on what products are selling in what stores. Before, the company would know what SKUs are top sellers at a certain location from point of sales data, but understanding the exact size and color that is driving those sales is enabled by RFID. That will greatly enhance merchandising plans.
Approximately 95% of Perry Ellis products are tagged with RFID before they leave the factories where they are produced. Advanced RFID capabilities have been implemented in 40 stores and the retailer is in the process of rolling them out chainwide. The technology quickly comes into play due to the small size of the typical store — between 1,500 and 3,000 square feet. Inventory needs to be carefully sorted between the front and backroom, and each store needs to have a clear view of inventory to ensure customers aren’t disappointed by an out-of-stock.
Additionally, the use of RFID will help Perry Ellis better get a more granular understanding of what products are selling in what stores. It’s one thing to know that a certain SKU is a top seller at a certain location, but understanding the exact size and color that is driving those sales can take merchandising to the next level.
“If you look purely at purely physical inventory, we don’t have big discrepancies — it’s less than 2%,” said Baghel. “But if you look at sizes, that varies a lot” in terms of accuracy level.
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