Copyright Goodheart-Willcox Co., Inc. Chapter 5 Satisfying the Fashion Market 87
Retailers and suppliers must carefully consider the pros and cons of col-
laborative data sharing relationships with their distribution chain partners.
The analysis and conclusions will probably be different for each company.
Radio Frequency Systems
Radio frequency identification (RFID) fi uses radio waves to communicate
information from smart labels. Each label or tag has a microchip with an
antenna inlayed into paper or plastic, often in circles, rectangles, or squares.
This wireless technology transmits and receives an enormous volume of data
at different frequencies through the air and into a computer system. RFID
is supplementing and replacing bar codes, and has been in use on shipping
containers and cartons for several years. It is now in use on many individual
items at retail businesses. RFID systems transmit an enormous volume of
data, not just indicating that goods are certain types of items, but which exact
unique item each is.
The standard code for RFID is the Electronic Product Code (EPC).
Compliance is global and Internet-based, allowing trading partners to quickly
and effi exchange supply chain data that is accurate, up-to-date, and ficiently
universally standardized. The EPC suits all industries and is fl exible to sup-
port many types of codes, including bar-code technology. EPC/RFID global
standards and solutions are for radio frequency product identification and fi
business communication. This helps move quantities of goods accurately and
effi through the worldwide supply chain. ficiently
RFID readers electronically receive, recognize, and record the data from
the EPC tag. This information is often deposited to the EPC Network Internet-
based registry, for universal access by authorized clients or trading partners.
Information can be sent from various distances and do not have to be within
line-of-sight view of the reader. The contents of delivery trucks can be recorded
automatically as they travel, or at receiving docks, warehouse bins, or supply
rooms. Stationary and mobile readers must meet all of the various needs of
companies. Some can read both UPC bar codes and EPC/RFID tags, Figure 5.11.
Shipping containers and cartons utilize radio frequency identification to fi
specify the contents. This eliminates the labor-intensive, error-prone require-
ment of opening each case to check items one-by-one—and also prevents
illegal distribution. Tracking of goods occurs in real time on computers
throughout the chain, without worker involvement.
With this technology, item-level RFID tagging from the source to the
retailer is gaining popularity. By integrating RFID microchip technology into
the tag of each item when manufacturing goods, inventory tracking is almost
fl awless throughout the chain. For instance, an item-level RFID tag can iden-
tify a jacket to be priced at $200, size 14, of dark green wool and brass buttons
from specifi c sources, that came off a specific fi Birmingham, AL production fi
line on Wednesday, March 21st at 9:14 a.m. This automated data source-to-
store technology also improves product quality and tells exactly how and
when the jacket went to the distribution center and to the retailer.
With automated RFID technology plus EPC-tagged merchandise, continu-
ous knowledge of on-hand inventory is possible. Manufacturers, distribution
Figure 5.11 Th e lines of the
hidden, embedded inlay of elec-
tronic product code (EPC) show
as this RFID label is peeled back.
Retailers and suppliers must carefully consider the pros and cons of col-
laborative data sharing relationships with their distribution chain partners.
The analysis and conclusions will probably be different for each company.
Radio Frequency Systems
Radio frequency identification (RFID) fi uses radio waves to communicate
information from smart labels. Each label or tag has a microchip with an
antenna inlayed into paper or plastic, often in circles, rectangles, or squares.
This wireless technology transmits and receives an enormous volume of data
at different frequencies through the air and into a computer system. RFID
is supplementing and replacing bar codes, and has been in use on shipping
containers and cartons for several years. It is now in use on many individual
items at retail businesses. RFID systems transmit an enormous volume of
data, not just indicating that goods are certain types of items, but which exact
unique item each is.
The standard code for RFID is the Electronic Product Code (EPC).
Compliance is global and Internet-based, allowing trading partners to quickly
and effi exchange supply chain data that is accurate, up-to-date, and ficiently
universally standardized. The EPC suits all industries and is fl exible to sup-
port many types of codes, including bar-code technology. EPC/RFID global
standards and solutions are for radio frequency product identification and fi
business communication. This helps move quantities of goods accurately and
effi through the worldwide supply chain. ficiently
RFID readers electronically receive, recognize, and record the data from
the EPC tag. This information is often deposited to the EPC Network Internet-
based registry, for universal access by authorized clients or trading partners.
Information can be sent from various distances and do not have to be within
line-of-sight view of the reader. The contents of delivery trucks can be recorded
automatically as they travel, or at receiving docks, warehouse bins, or supply
rooms. Stationary and mobile readers must meet all of the various needs of
companies. Some can read both UPC bar codes and EPC/RFID tags, Figure 5.11.
Shipping containers and cartons utilize radio frequency identification to fi
specify the contents. This eliminates the labor-intensive, error-prone require-
ment of opening each case to check items one-by-one—and also prevents
illegal distribution. Tracking of goods occurs in real time on computers
throughout the chain, without worker involvement.
With this technology, item-level RFID tagging from the source to the
retailer is gaining popularity. By integrating RFID microchip technology into
the tag of each item when manufacturing goods, inventory tracking is almost
fl awless throughout the chain. For instance, an item-level RFID tag can iden-
tify a jacket to be priced at $200, size 14, of dark green wool and brass buttons
from specifi c sources, that came off a specific fi Birmingham, AL production fi
line on Wednesday, March 21st at 9:14 a.m. This automated data source-to-
store technology also improves product quality and tells exactly how and
when the jacket went to the distribution center and to the retailer.
With automated RFID technology plus EPC-tagged merchandise, continu-
ous knowledge of on-hand inventory is possible. Manufacturers, distribution
Figure 5.11 Th e lines of the
hidden, embedded inlay of elec-
tronic product code (EPC) show
as this RFID label is peeled back.