First of all, we’re going to start explaining briefly in what consists RFID technology.
Radio-frequency identification (RFID) is a technology used to transfer data of way wireless and contactless using radio-frequency electromagnetic fields and it has as its purpose identifying and tracking attached tags to objects automatically.
This technology can seem new but it isn’t. It was already used in the forties in the Second World War to avoid friendly fire.
The system is composed by transponders (tags), readers, antennas and a host (central system). The reader connected to a computer, communicates through an antenna with tags by radio waves. These tags are attached to products or packing and send back an identifying response.
Next image shows how it works:
Walmart is the pioneer in promoting RFID technology and it’s able to save up 8 billion dollars annually and reduce Out-of-stocks by 30 percent for products sold between 0.1 and 15 units a day.
RFID technology helps a lot to Media Markt supply chain. The tags are placed in storage areas where products are inspected and packed. Moreover, these tags allow that every product is placed in every step along the whole supply chain till the final customer.
The pallets are controlled at the exit and entry of the warehouses with RFID antennas. The same process happens when products go to the store.
Now we’re going to see some RFID advantages:
Increases SC efficiency, security and control (real-time).
Decreases thefts, losses, errors and stock.
Decreases time dedicated to preparation of shipments, inspections and logistics.
Helps to know exactly the goods quantity in stores.
Finally, the following video shows how we could shop in a near future:
I think it’s an easier and faster way to buy.