printer friendly version

RFID for POS systems

A factor negatively affecting customer service in the retail industry is having to queue at the cashier.

RFID can speed up the check-out process but also has potential drawbacks.

RCG has developed an RFID solution that is now being effectively used in the retail industry. It enhances customer service and streamlines check-out as well as back-end administration processes.

RFID differs from barcoding because the items do not have to be individually scanned. The RFID reader will register an entire trolley of goods simultaneously, in less than a second, and like barcoding will integrate to the backend systems.

But the RFID tag, which is normally a small electronic strip securely attached outside the product or installed inside the product's packaging by the manufacturer, can have drawbacks.

The tags can cost up to R1,50 each and some suppliers will need to install the tag during the manufacturing or packaging process. While this is being done overseas, it is not yet being done in SA. RFID can only be effective if all the products in a store are RFID tagged.

Because RFID-enabled systems have the ability to check out multiple items in a single pass, compared to barcoding, which can only scan one item at a time, RFID offers significant speed advantages.

Product information such as the description, pricing and sales data are updated instantly, providing up-to-date sales management information.

In a theme park application in Kuala Lumpur, wristbands are supplied to visitors stored with a monetary credit value credited to the visitor. Cash is deducted from the RFID-based wristbands enabling the visitor to pay for entertainment, food or other items by swiping their wristband across an RFID reader.

This system has been running efficiently since last year and is a good example of how RFID can be used in a retail POS application.

Overall, RFID applications need to be carefully evaluated beforehand to see whether they will be cost effective and practical. In some cases it will be better to stay with a traditional POS system using barcoding. But in others, RFID will provide a better solution.

Mike Cox is the operations manager at RCG Systems SA.

Share this article:

Further reading: