Copyright Goodheart-Willcox Co., Inc. 88 Fashion Marketing &Merchandising
centers, and stores can effectively manage every piece of the inventory by
style, color, and size. This improves ordering, packing and shipping, mer-
chandising, and promotion. Reorders can be timely, with lower total inven-
tory yet fewer stock-outs. This technology reduces fraud within the chain,
with companies knowing when and what items are missing. Although the
RFID readers are expensive, the tags are quite cheap. Item-level RFID elimi-
nates the labor of scanning every item and can track each item’s precise loca-
tion. It enables companies to digitally interact with consumers, possibly with
product recommendations, customized coupons, and more. Inventory can be
put in place where and when consumers want it. Customers are happier and
company profi are higher. fits
Other Automatic ID Systems
Additional automatic identifi technologies include magnetic stripes, fication
voice recognition, machine vision, and other smartcards.
• Magnetic stripes are common along the top or bottom of the back of credit
and other fi nancial or security cards. When the stripes are run through
reading devices, information contained in the stripes is translated.
• Voice recognition allows computers to respond to human voices for data
input and/or operating commands. This is gaining in popularity to pick
orders in distribution centers.
• Machine vision uses video cameras to read bar codes or identify a product
through its signature, such as size, shape, or color of package.
• Smartcards have a small microprocessor embedded in the plastic, similar
to RFID labels. The microprocessor provides user identification, informa- fi
tion, or stored cash credits that can be used for purchases. Smartcards
carry more extensive information than standard magnetic stripe cards.
Also, the information changes with the circumstances. Similar devices are
attached to merchandise for security reasons, to trip alarms at exits and
alert store personnel about shoplifting.
Technology Disadvantages
As with all advancements, there are a few negative aspects to the new tech-
nology. The disadvantages are minor, however, compared to the many advan-
tages received from the systems. Most of the disadvantages are diminishing
as time passes.
One disadvantage has been high financial cost. Companies must buy and
install certain computer hardware, or equipment consisting of keyboards,
monitors, and printers. They must purchase expensive computer software,
or programs, that tell the computer to do the required procedures, such as
recording what is in stock or has been sold. They must also spend money on
bar code printers and scanners, or RFID tags and readers. Finally, employee
training is necessary to use the system. These high costs tend to make the
technology more available to large companies than small ones. Large com-
panies can more easily afford to purchase the needed components and, thus,
become more effi This makes it harder for small companies to compete ficient.
centers, and stores can effectively manage every piece of the inventory by
style, color, and size. This improves ordering, packing and shipping, mer-
chandising, and promotion. Reorders can be timely, with lower total inven-
tory yet fewer stock-outs. This technology reduces fraud within the chain,
with companies knowing when and what items are missing. Although the
RFID readers are expensive, the tags are quite cheap. Item-level RFID elimi-
nates the labor of scanning every item and can track each item’s precise loca-
tion. It enables companies to digitally interact with consumers, possibly with
product recommendations, customized coupons, and more. Inventory can be
put in place where and when consumers want it. Customers are happier and
company profi are higher. fits
Other Automatic ID Systems
Additional automatic identifi technologies include magnetic stripes, fication
voice recognition, machine vision, and other smartcards.
• Magnetic stripes are common along the top or bottom of the back of credit
and other fi nancial or security cards. When the stripes are run through
reading devices, information contained in the stripes is translated.
• Voice recognition allows computers to respond to human voices for data
input and/or operating commands. This is gaining in popularity to pick
orders in distribution centers.
• Machine vision uses video cameras to read bar codes or identify a product
through its signature, such as size, shape, or color of package.
• Smartcards have a small microprocessor embedded in the plastic, similar
to RFID labels. The microprocessor provides user identification, informa- fi
tion, or stored cash credits that can be used for purchases. Smartcards
carry more extensive information than standard magnetic stripe cards.
Also, the information changes with the circumstances. Similar devices are
attached to merchandise for security reasons, to trip alarms at exits and
alert store personnel about shoplifting.
Technology Disadvantages
As with all advancements, there are a few negative aspects to the new tech-
nology. The disadvantages are minor, however, compared to the many advan-
tages received from the systems. Most of the disadvantages are diminishing
as time passes.
One disadvantage has been high financial cost. Companies must buy and
install certain computer hardware, or equipment consisting of keyboards,
monitors, and printers. They must purchase expensive computer software,
or programs, that tell the computer to do the required procedures, such as
recording what is in stock or has been sold. They must also spend money on
bar code printers and scanners, or RFID tags and readers. Finally, employee
training is necessary to use the system. These high costs tend to make the
technology more available to large companies than small ones. Large com-
panies can more easily afford to purchase the needed components and, thus,
become more effi This makes it harder for small companies to compete ficient.