The Model Analysis In Retail Logistics Based On Rfid Technology

Since the last century to be specific in the eighties, bar codes technology and information systems related have been widely used in retail industries. Bar code did improve the efficiency of processing of data effectively. However, with the continued expansion of retail scale and the turbulently changing environments, retail industries are now facing a series of challenges; all because of the rapid changing of market conditions, fueled by increasing global competition, higher performance expectations by customers and the market, and the evolving technologies. Based on these limitations or disadvantages of bar code (such as, small amount of information, line-to-sight reading, lack of efficiency, scan at shorter distances, etc), man must be involved in the operation to curtail the limitations. Therefore, technological innovation is needed in retail, such as, Radio-frequency Identification (RFID).Radio-frequency Identification (RFID) is similar in theory to bar code. With RFID system consists of an antenna and a transceiver, which read the radio frequency and transfer the information to a processing device, and a transponder, or tag, which is an integrated circuit containing the RF circuitry and information to be transmitted. RFID systems can be used just about anywhere. It is a very valuable technical tool for retail industry, and it is growing very fast day-by-day to replace all the existing automated identification technologies like the bar code. RFID technology offers the potential to greatly improve the retail industries due to its ability to provide rich and timely information that increases visibility and control over the retail logistics. However, many companies today are hesitant to integrate this technology because of the lack of confidence in justifying the Return on Investment (ROI). Numerous sources state that, attaining a short-term ROI from RFID is difficult and that implementation needs to focus on longer-term or multi-year payback period to achieve ROI objectives. A recent study showed that 95% percent of suppliers to Wal-Mart didn't expect ROI in less than two years, and many also did not that think they will see ROI in four or five years. This illustrates that RFID presents a differing value proposition depending on the position within the retail industry.This thesis focus on analyzing its present operation condition about retail logistics and present a model of RFID which can be used in retail.We used a recent publications and recent published books as our sources and that is to make sure we are providing the latest about the using of the technology in retail.Most of publication we used is US universities publication as US holds the upper hand in implementing RFID as for now.The paper is discussed and organized into five (5) sections which are as follow: Section 1-provides the motivation for this paper. The history and development of RFID is also reviewed, as well as, the structure of this paper. Section 2-considers an overview of RFID technology including tags, readers, and antennas; how they work together to present a complete system. We will discuss in detail pertaining to the components terminologies. Section 3-is a transitional passage. This section, primarily introduces the necessary of using RFID in retail logistics. We will also analyze logistic information in retailing company and find the problems in retail. Section 4-views the core components in this paper; at first, an example will be given, such as, the success of Wal-Mart in using RFID. Secondly, we will analyze the feasibility of using RFID in other retail companies. Thirdly, we will set up the model of RFID. With the detailed explanation about the model, more retailers will better understand RFID technology and its usage, which is also the purpose of this paper. Section 5-gives the summary; it points out the limitations of this study and suggestions for future studies. It also suggests that in the near future RFID technology must be used in retail.The model in this paper, if used properly will accelerate senior managers to the process for their investments in RFID. It presents a great deal of opportunity for leaders to take their supply chain performance to a superior level. However, it does not come without risks which could delay the adoption of this technology. Finally, RFID technology must be widely used in retail so as to obtain rich and timely information which will allow companies to have absolute control over retail logistics.