Fox IT Symposium
Will RFID completely change retailing and distribution?
October 20, 2004
7:30 to 10:00 AM
Fox/Gittis Foyer
Liacouras Center
Temple University Main Campus
Panelists
Jack DeAlmo, Vice President, CVS
Mark Donovan, Senior Vice President, Philadelphia Eagles
Craig R. Jett, Global Supply Chain and RFID Solution Executive, Distribution
Sector, IBM
Douglas M.
Karp, Senior Director, General Manager, Checkpoint Systems, Inc.
Alan Melling, Senior Director, Symbol Technologies
Moderator
Larry Dignan, News Editor, Baseline
Summary
The rapid rate of adoption of Radio Frequency
Identification (RFID) tags is challenging the retail and distribution processes
of many firms. RFID tags are tiny radio transmitters with read/write memory
capability that could replace traditional barcode technology to automatically
identify and track shipments and merchandise. A product could in theory be
tracked and managed through the complete supply and retail chain from production
to eventual disposal. Major retailers and the US government have mandated the use
of this technology.
What are the major business and technical implications of
this technology? As businesses rush to adopt a technology with a shaky standard
will there be a negative fall-out from inevitable failures? What can we learn
from the lead adopters of RFID? This panel will pull together expert
practitioners who can realistically address and assess the impact of RFID on the
retailing and distribution industry.
Radio frequency identification tagging has the ability to
revolutionize retailing. Real-time inventory management, automatic shelf
replenishment and better in-stock levels are all possible. Spurred by Wal-Mart,
the widespread adoption of RFID isn’t a matter of if but when.
Our panelists had various views and experiences with the technology. CVS vice
president Jack DeAlmo is looking at RFID to track expensive prescription drugs
and comply with Federal Drug Administration regulations. Mark Donovan, a senior
vice president with the Philadelphia Eagles, instituted RFID at the team’s
stadium to speed concession lines and foster consumer loyalty programs.
Among the topics covered:
Are bar codes going to become a relic of the past? Alan Melling, senior director
at Symbol Technologies said that he expects the two technologies to coexist for
a while. His company provides both.
Will RFID hurt privacy? All of the panelists were concerned with privacy issues,
but noted that there are precautions. The key is being upfront about how data is
used and give consumers a clear benefit.
Douglas Karp, Senior Director, General Manager, Checkpoint Systems,
said one area where RFID has shown a benefit is library checkout systems.
Is there a return on investment? Craig
Jett, Global Supply Chain and RFID
Solution Executive, Distribution Sector, IBM, noted that returns will be company
specific based on how RFID tagging is used. The costs of tags is one large
hurdle.
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