Tesco steps up RFID efforts

Tesco is rolling out radio barcode technology across its 98 Tesco Extra stores to track high-value items between its internal distribution centres and its outlets.

Radio barcode is a form of passive RFID tagging. Tesco will store only a barcode-style identification number on each tag - much less information than RFID tags are able to store - because this drives down the cost per tag.

"We are aiming for the industry standard of five cents per tag, and storing only unique item numbers enables the cost per tag to be driven down," said Colin Cobain, group IT director at Tesco.

Due to be completed by Christmas, the rollout will see radio barcode tags placed on totes (individual shelves) and dollies (the wheel base) used to store and transfer stock around the retailer's warehouses.

Initially only high-value items such as computer accessories, razor blades and cameras will be tagged, but Tesco believes the technology will reduce operating costs by minimising shrinkage, as well as improving stock accuracy and availability.

Cobain said Tesco is also trialling tagging of individual DVDs and CDs in its Sandhurst and Leicester stores.

The firm would not reveal its tag and hardware supplier, but said that RFID company OAT Systems will provide the software to enable it to capture tag information, add context and control the system.

"The industry standard for RFID is already in place and other businesses should be implementing similar technology too, looking at where it works rather than where it doesn't," said Cobain.

"It's likely we may be asking suppliers to tag products in the future."

Hewlett Packard has also announced this week that it aims to encourage deployment of RFID technology in working environments, through partnerships with OAT Systems and systems integrator BearingPoint.

See also:

Tesco pushes on with full-scale RFID rollout

The UK's leading supermarket confirms RFID program is underway  19 Jan 2005

Tesco looks at TV to boost revenue

Broadband satellite television airs adverts in supermarkets  04 Nov 2004

Giants play tag with RFID

Large IT vendors are adding their momentum to the growing support for radio frequency tagging among retailers  03 Feb 2004

Intel and Tesco team up for RFID

Every little helps ...  14 Jan 2004

Radio frequency ID tags

The controversial tracking technology looks set to make a big impression this year, as more retailers prepare to explore its possibilities.  09 Jan 2004

Tesco unveils RFID strategy

Retailer plans to promote RFID as 'radio barcode'  26 Nov 2003

Major retailers accelerate adoption of RFID

Wal-Mart's strategy for its supply chain will increase production of radio frequency identification chips.  25 Jun 2003

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