Item-level tagging

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Item-level tagging (or RFID item-level tagging, also known as ILT) is the tagging of individual products, as opposed to case-level and pallet-level tagging. [1] Item-level tagging is used to track individual items in order to better control inventory, by providing retailers with the ability to tag individual items on the retail floor. [2] Previously, RFID tags were used to track pallets of merchandise, rather than individual items, through the supply chain. [3] With the use of printed RFID tags, retailers are now able to track inventory at the item level, scan the tag, and know the location. [2]

Contents

Retailers are pushing for tagging each individual item. In fact, large companies like Wal-Mart, JC Penney, and Dillard’s are issuing electronic product code mandates, [4] where they request their suppliers to comply with these EPC protocols. In 2005, it was required that the suppliers use RFID tagging at the pallet and case level, [5] but now it is required that they tag on the item-level as well. The reason why is it so important for them to implement this is because they want to avoid losing a sale over an out-of-stock item, which they believe accounts for a big part of their losses. Also, if they know where an item is at all times then it easier to move it to where it is supposed to be. By doing this they reduce transportation costs, they gain added shelf visibility and it drives down wasteful overstock. [6]

Benefits

Item-level tagging provides a quick, automated, cost efficient and accurate way to track inventory through the supply chain and in the retail environment. Benefits to item-level tagging include better visibility and control of inventory and an expansion of customer experience capabilities. Item-level tagging is critical in order to determine how much inventory is on the floor, what sizes and colors need to be restocked and what inventory is available in stock rooms. Other benefits include the ability to keep a fully stocked floor, increased time and labor savings, increase inventory accuracy, and reduction in clearance items due to incorrect inventory and excess ordering. [2]

Industries Using Item-Level Tagging

Related Research Articles

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Traceability is the capability to trace something. In some cases, it is interpreted as the ability to verify the history, location, or application of an item by means of documented recorded identification.

<i>Kanban</i> scheduling system / stock replenishment for lean manufacturing and just-in-time manufacturing (JIT)

Kanban (看板) is a scheduling system for lean manufacturing and just-in-time manufacturing (JIT). Taiichi Ohno, an industrial engineer at Toyota, developed kanban to improve manufacturing efficiency. Kanban is one method to achieve JIT. The system takes its name from the cards that track production within a factory. For many in the automotive sector, kanban is known as the "Toyota nameplate system" and as such the term is not used by some other automakers.

Logistics automation

Logistics automation is the application of computer software or automated machinery to improve the efficiency of logistics operations. Typically this refers to operations within a warehouse or distribution center, with broader tasks undertaken by supply chain engineering systems and enterprise resource planning systems.

Electronic Product Code universal identifier that provides a unique identity for every physical object anywhere in the world, for all time

The Electronic Product Code (EPC) is designed as a universal identifier that provides a unique identity for every physical object anywhere in the world, for all time. The EPC structure is defined in the EPCglobal Tag Data Standard, which is an open standard freely available for download from the website of EPCglobal, Inc.. The canonical representation of an EPC is a URI, namely the 'pure-identity URI' representation that is intended for use when referring to a specific physical object in communications about EPCs among information systems and business application software.

Vendor-Managed Inventory (VMI) is a theory based inspired by integration in supply chain management regarding system dynamics. In recent years, various partnerships like vendor managed inventory (VMI) approach have been used in inventory management as a means to cope with the bullwhip effect.

Zara (retailer) retailer for clothing, headquartered in Spain

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Distribution center

A distribution center for a set of products is a warehouse or other specialized building, often with refrigeration or air conditioning, which is stocked with products (goods) to be redistributed to retailers, to wholesalers, or directly to consumers. A distribution center is a principal part, the order processing element, of the entire order fulfillment process. Distribution centers are usually thought of as being demand driven. A distribution center can also be called a warehouse, a DC, a fulfillment center, a cross-dock facility, a bulk break center, and a package handling center. The name by which the distribution center is known is commonly based on the purpose of the operation. For example, a "retail distribution center" normally distributes goods to retail stores, an "order fulfillment center" commonly distributes goods directly to consumers, and a cross-dock facility stores little or no product but distributes goods to other destinations.

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GS1 neutral, not-for-profit, international organisation developing and maintaining standards including barcodes

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GS1 US member of GS1

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Stockout Depletion of inventory

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Checkpoint Systems is an American provider for loss prevention and merchandise visibility. Checkpoint allows retailers to achieve accurate real-time inventory, accelerate the replenishment cycle, prevent out-of-stocks and reduce theft to improve merchandise availability and the shopper's experience. Checkpoint offers Electronic Article Surveillance (EAS) radio frequency solutions for retail, high-theft and loss-prevention solutions, RFID hardware, software, and labeling capabilities.

Omni-ID

Omni-ID is a vendor of passive UHF Radio-frequency identification (RFID) tags. Founded in 2007 as Omni-ID, Ltd., its products are a range of RFID tags designed to operate in all environments, including on metal and liquids.

Terso Solutions

Terso Solutions, Inc., located in Madison, Wisconsin, USA, is the developer and distributor of an automated system for storage and distribution of high value research reagents and medical supplies. Terso first developed a reagent stocking system, which uses RAIN radio frequency identification (RFID) tags along with secure access control, linked to the internet. These combined technologies allow inventory to be securely tracked and managed remotely.

Inventory management software is a software system for tracking inventory levels, orders, sales and deliveries. It can also be used in the manufacturing industry to create a work order, bill of materials and other production-related documents. Companies use inventory management software to avoid product overstock and outages. It is a tool for organizing inventory data that before was generally stored in hard-copy form or in spreadsheets.

Retail Solutions Inc.

Founded in 2003, Retail Solutions Inc (RSi) is a software company based in Mountain View, CA that provides software-as-a-service products for data management, reporting and business intelligence, and point of sale applications. RSi was named by Forbes as the biggest SaaS company you've never heard of. The company started out selling radio-frequency identification (RFID) software before moving into its current business.

References

  1. ↑ "Glossary of RFID Terms: F - L". RFID Journal. Archived from the original on 2012-10-05. Retrieved 2012-12-19. Item-level: A term used to discribed [sic] the tagging of individual products, as opposed to case-level and pallet-level tagging.
  2. 1 2 3 Ricci, Carolyn (2010-10-12). "Retailers Buy into Item-Level Tagging". Apparel Magazine. Retrieved 2012-12-19.
  3. ↑ "Auto-ID Glossary". CYBRA Corporation. 2015-04-30. Archived from the original on 12 January 2010. Item-level: Tagging of individual items, as opposed to tagging cases or pallets.
  4. ↑ "Item Level EPC: EdgeMagic RFID EPC System". CYBRA Corporation. Retrieved 19 December 2012.
  5. ↑ "RFID Technology Gaining Popularity With Suppliers, Retailers". Know SCM (supply chain management). Arizona State University, W.P. Carey School of Business. 22 December 2005. Archived from the original on 4 April 2012. Retrieved 2012-12-19.
  6. ↑ "Panel 2: Current and Anticipated Uses of RF Technologies". RFID: A Report of the RFID Workshop. Preemptive Media. 21 June 2004. Retrieved 2012-12-19.
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