RFID is poised to be one of the most influential technologies to affect the retail industry of the future that will radically change the nature of business in the retail supply chain.

An RFID chip is a small silicon chip that carries limited information and emits data, either actively or passively using radio waves to identify individual items thereby not requiring line of sight or human intervention for identification. Readers capture this information and pass it on to applications which can then process and use this information providing an all-pervasive view the tagged product through the supply chain.

In effect RFID would transform every facet of the retail supply chain. It would enable easy inspection and immediate clearance of goods across all stages of the supply chain. The need for safety-stock would decline due to reduced lead-time and lead-time variability. There would be a direct reduction in labor costs, much higher utilization of assets and elimination of shrink. Also, the customer shopping experience, the post sale warranties and service programs would be greatly enhanced.

We are keenly following the development and adoption of this technology. A working group of cross functional specialists is working to identify areas of application development, infrastructure development and other capabilities which will help us to service our clients better. We have started working with a major retailer on their first RFID project thus becoming one of the very first companies in the world to have worked in this area.