The disputed beginnings and origins of Radio Frequency Identification (RFID) technology lay not only in its conception but also its depiction as either an early covert listening device or as a British radio identification transponder during the Second World War.
How RFID technology was born is now irrelevant, but how it’s been developed over the last few years and its future role in modern economies and technology is. Either way, RFID technology isn’t the result of a new concept or theory being formulated, but more of how an existing technology is being innovatively explored and enhanced to help various operational stages in many industries and businesses throughout the world, especially in the retail sector.
It may be a surprise to many that RFID technology is already being used extensively throughout many of our dayto- day business and social dealings. For example, RFID equipment has steadily become an important feature in modern day security systems including electronic key pass entry and newly issued epassports. RFID tags are also used in electronic toll collection at toll booths throughout many countries, including Australia. In addition, public transport payments are becoming increasingly influenced by RFID technology in the U.K where prepaying for unlimited public travel can be implemented through RFID smartcards.
However, in Australia the largest current use of RFID technology is being used by the meat and livestock industry. As a consequence of numerous health and safety issues concerning the import and export of cattle throughout the world Meat and Livestock Australia (MLA) applied strict compliance conditions for livestock throughout Australia. They developed the National Livestock Identification System (NLIS) – an integrated tracking system that is embedded in the cattle’s body and enables identification and traceable history to be sourced at any point using RFID technology.
The NLIS has allowed the Australian meat and livestock sector to gain a leading competitive advantage over others by being able to track and manage livestock. This technology has enhanced the industry’s credentials as the worlds leading provider of diseasefree livestock.
So, how can RFID technology be used in the retail industry? Firstly, retail supplychain management companies are currently using RFID tags to help track information on individual products, monitor goods, and check movement and inventory flows. RFID technology has allowed supply chain operators to reduce labour costs and inaccuracies from human errors, especially in stock taking and cross-docking procedures. With retailers facing increasing demands for having the correct goods available at the right destinations in the quickest possible time, RFID technology allows supply chain management systems visibility on products to prevent costly and timely errors.
Importantly, RFID technology is working alongside existing systems such as barcodes to complement current supplychain operations. RFID tags are also being more commonly used commercially in case, pallet, and container tracking.
With its wide-ranging possible applications RFID technology has the recognised potential to store vast amounts of live valuable product information and remotely transmit data to a computer or tracking device. As a result, the retail supply chainmanagement operators have identified this technology as being a positive and progressive approach to the management of materials and products for the future.
There are currently several large retailers including Wal-Mart in the U.S undertaking various pilot programs conducting RFID technology trials where consumer products are tagged in stores for theft prevention and marketing purposes. However, privacy advocate groups around the world have raised several complaints about RFID tags causing consumer privacy violations and for this reason many retailers are reassessing the future role RFID technology applications.
Nevertheless, RFID has the potential to improve the retail industry with better product information within stores. What’s more, many of the products retailers now sell are being influenced by supply chain RFID technology.
While the general application of the technology is a while away for retail, the ARA is actively involved in securing the future integration of this technology in the retail industry and in particular addressing the privacy concerns of consumers. This is evident through the development of the ‘RFID Retail Consumer Privacy Code of Practice’ and participation in privacy reviews.
With the benefits being ultimately customer orientated RFID technology is enabling industries and businesses to become better equipped in the modern economies of the world. The progression of RFID tags will allow many parts of the retail industry to become cost-effective, visible and improve the delivery of products along the supply-retailercustomer chain. As with Australia’s meat and livestock industry the advantages of RFID are numerous and beneficial, therefore, the future role of RFID in the Australian economy could play an influential role, especially in retail.
