RFID, 2D Bar Code Tech Converge to Accelerate Checkout

By  Mike Poldino, Vice President, Motorola Enterprise Mobility Solutions
As bar code technology celebrates its 35th anniversary and continues to be important for retailers everywhere, new data capture technologies like 2D bar coding and radio frequency identification (RFID) are poised and ready to grow retail efficiencies just as their predecessor has for so long. Rather than replacing 1D bar code technology outright, however, combining 2D bar coding and RFID with 1D bar code technology offers retailers the ability to enhance inventory management, reduce out-of-stocks, and increase sales as well as utilize additional value-added applications.

As the standard in today's retail environment, 1D bar coding systems are traditionally used for high-volume merchandising, rapid scanning activities, point-of-sale and to allow customers to price check using kiosks. It is an easy system for retailers to deploy since the majority of packaging already comes printed with 1D bar codes, requiring little technology implementation. These 1D bar codes are already found on consumer products, a piece of paper, a shipping manifest or a shelf label. 1D bar coding also tends to be less expensive than other similar technologies, making it the more attractive option.

Growing from 1D bar codes to a wider adoption of 2D bar codes is a result of the utilization of value added applications. For instance, with 2D bar codes, store employees can use the information embedded in a driver's license to monitor returns, verify a customer's age (for age-appropriate products) and instantly auto-populate credit and loyalty card forms. 2D bar codes are increasingly being used in mobile applications like event ticketing and airline ticketing. Mobile couponing is also on the rise as retailers continue to look for new ways to have personalized and highly targeted conversations with their customers.

The most recent offspring of the bar code, RFID, is now experiencing increased popularity among retailers by driving improvements from the warehouse to the retail floor. RFID takes the value of individual bar code systems to a new level by giving retailers real-time inventory visibility with little effort. RFID's automated bulk data capture enables rich inventory visibility as goods travel throughout the store. On the loading dock, RFID speeds up the inbound receiving process, enabling instant reconciliation of shipments against purchase orders. As a result, merchandise reaches the sales floor faster and more efficiently. Once on the sales floor, RFID ensures appropriate stocking levels are maintained and that customers find just what they need when they need it.

Motorola provides both RFID readers and bar code scanners, and in the process, it has discovered that a mix of technologies typically best satisfies customers' needs. When determining whether RFID is right for you, consider these key characteristics that lend themselves to an RFID-based solution. The more of these characteristics that apply to your situation, the more value that RFID can generate in comparison to a bar code based solution alone. To determine which mix of technologies you require, consider: 

- The quantity or variety of items being managed - Larger variety can benefit more from the greater level of automation and efficiencies RFID can provide.

- The value of items - Higher value items make more sense to tag with RFID. For example, given the cost of an RFID tag (around 10 - 20 cents), it makes more sense to tag a high-end item such as a large appliance than a pack of low-cost chewing gum.

- The velocity of movement/sales - The quicker that items move, the more important it is to know when you need to restock or reorder replacement supplies. RFID brings real-time visibility into inventory management processes for instant notification of replenishment needs.

- Reusability of goods - If the items being tagged and tracked are reusable, as in totes, carts or trolleys, the investment in an RFID tagging and tracing system make more sense, as the tag will rarely need to be replaced and can stay with the item throughout its life. However, disposable goods lend themselves better to bar code tracking systems

- Need for tracing - Is there a need to understand where the items have been? For example, in the case of identifying counterfeit or contaminated goods, RFID can manage much more information than bar codes. This level of detailed information can be updated and travel with the item throughout its life so that retailers know exactly when, where and how each shipment and pallet of goods has been impacted

- Logistics of tagging - Are the items easy to tag? Some items such as clothing are easy to tag, while other items such as smaller, irregularly shaped items such as jewelry may require added investment of time and money to figure out a tag process that works.

Innovative retail solutions, such as RFID and bar code technologies, create a truly unique in-store experience with interactive tools that engage customers. With consumer spending at an all time low, it is more important than ever for retailers to identify new methods of appealing to consumers and inspiring customer loyalty. RFID and 2D bar coding technology offer both the opportunity for business development and consumer interaction making them value-added solutions for retailers.