Retail POS Scanning History

On the 26th of June 1974, a customer at Marsh's supermarket in Troy, Ohio made the first purchase of a product with a bar code, a 10 pack of Wrigley's Juicy Fruit Gum, which is now on display at the Smithsonian Museum of American History.

Over the next 8 years bar codes were only gradually accepted and by 1984, a mere 15,000 suppliers were using them. That all changed when Wal-Mart made a decision to implement this technology and within 3 years the supplier implementation had grown by over 500%.

However, bar codes have some disadvantages:

Products must be scanned individually a number of times.
          o Manufacturers, Wholesalers, Shippers and Retailers must scan each bar code.
          o Customers have to unpack their shopping trolleys at the checkout line so that each bar code can be scanned.
A bar code is read-only technology, meaning that it cannot send out any information.

RFID what is it and what does it promise?

RFID is the acronym for Radio Frequency Identification Device or simply Radio Frequency IDentification.

Invented in 1969 and patented in 1973, RFID is the scanning technology that promises to be the next revolution in the way we manage stock and deal with the Point of Sale.

For more information about how this technology actually works simply click here.

RFID promises significant benefits for both the retailer and the consumer.

In summary they are.

Less 'out of stock' on shelves.
          o Products can be tracked individually through the entire supply chain from Supplier, Distribution Centre, Retail Shop to Consumer
          o 'Smart' shelving with built-in RFID readers will interact with retailers replenishment systems
          o Inventory levels can be precisely determined and 'just in time' planning can be more effective
Reduced queuing at checkout counters
          o Items will not longer need to be removed from the trolley and the entire purchase will be able to be scanned in the trolley
Lower costs
          o The lower investment in inventory, increased security and increased speed at the checkout line will ultimately drive prices down.

RFID is no longer just a dream of the future it is already reality.

Already we are seeing item level RFID testing being done by Metro Stores in Germany at their Future Store initiative in Dusseldorf which first opened its doors in April 2003. Wal-Mart has also put it's financial muscle behind the technology and in November 2003 announced an investment of US$3bn to switch from bar codes to RFID. Wal-Mart has set a January 2005 target for its top 100 suppliers to be placing RFID on cases and pallets destined for Wal-Mart and SAM'S CLUB locations in Dallas.

For more information about the Metro and Walmart initiatives, click on the link referring to the relevant name.
How does RFID affect Retailers’ trolley needs?

Put simply, radio waves do not pass through metal baskets due to the 'Faraday cage' effect. Item level RFID will just not work with metal trolleys. However plastic is transparent to radio waves.

Supercart trolleys have been tested and found to be the perfect match for RFID technology and as such retailers can already now have a trolley that is not only preferred 9 to 1 by customers but is ready for the future.
Want to read more about RFID?

Links to general RFID sites: RFID Journal, RFID 101, Using RFID