printer friendly version

RFID set to supply transform supply chain management

Large-scale deployment of integrated radio frequency identification (RFID) tagging solutions will transform retail supply chain management and the time for adoption is now, according to John Smith, president of Sensormatic's Retail Solutions Group.

Smith says that RFID's "compelling cost-saving and revenue-enhancing opportunities will give a clear competitive advantage to early adopters.

"Retailers today need every edge to compete effectively. RFID tagging creates an easily accessible 'information pipeline' to drive sound management decisions and profitability as merchandise flows throughout the supply chain. It opens the door to significantly reduce inventory, lower supply chain costs and optimise retail pricing as never before," Smith says. He adds that RFID also provides tools to reduce retail industry paperwork and administrative losses, recently pegged at nearly $5 billion annually, according to a University of Florida study.

While RFID's potential is exciting, until now adopting the technology has been problematic for global retailers who require integrated, scalable solutions. That is about to change as major industry players get in the game, says Smith. Tyco's Retail Solutions Group, for example, is introducing SENSORID, the world's first open-standard, integrated and scalable RFID solution for global retailers. The company already is a global retail industry leader with its Sensormatic brand electronic article surveillance (EAS) systems.

"We intend to be at the heart of the RFID market and to make the technology a huge win for our global customers. Our focus is providing customers a path to RFID with built-in investment protection that makes early adoption practical," Smith says. SENSORID integrates with EAS systems and provides a platform for cost-effective expansion of RFID as the technology evolves.

In introducing SENSORID, the company is leveraging Sensormatic's 30-year track record, resources and the company's global footprint to create a partnership network of leading enterprise integrators and RFID technology developers. "As a result, we are uniquely positioned to be a leading RFID solutions provider in retail and the retail supply chain," Smith points out.

"In the next few years, retailers will demand billions of low-cost, high performance RFID tags to create their realtime information systems. Tyco's Retail Solutions Group has made a five-year investment in building the RFID infrastructure to meet that demand," he continues. "With the formation of our RFID Solutions Team, George Reynolds, vice president of RFID, is empowered to make SENSORID products a success for retailers and retail suppliers alike."

With more than 600 000 Sensormatic EAS systems installed and 4 billion tags and labels sold annually, the company has unparalleled experience in retail goods identification, tracking and security, notes Smith. The industry veteran took the helm at Tyco's Retail Solutions Group in fall 2002 after serving as president of Tyco's ADT Europe and managing global operations for companies including Sensormatic, ADT, Chubb, and Automated Security Holdings.

Smith explains that RFID tag, reader, and software technology can deliver:

* True integrated retailing, where the inventory in transit, in the distribution centre and in every store can be leveraged to complete sales.

* Realtime inventory visibility at the manufacturer, supply chain and store levels.

* Scan-based trading for high value merchandise.

* Item-level information that can be leveraged by both store and management personnel.

* A barrier to the sale and distribution of counterfeit merchandise, and to the return of stolen merchandise for cash.

* An in-store customer service platform and a high value in-store selling tool.

* An item-level quality control tool to enhance supervision and control over suppliers.

Share this article:

Further reading: