Technology Update: Radio Frequency Identification
With almost a third of grocery stores already using the do-it-yourself technology of self scanning, checkout clerks are becoming more aware of the potential effects that technology has on their jobs. While cashiers are becoming acclimated to their changing environment, employers continue to move full speed ahead in their pursuit of technology to save on labor costs. The latest high-tech system to be implemented will affect many other workers in the retail and manufacturing industries.
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| RFID has been used for many things, first appearing during World War II when the |
Bar codes must be scanned manually and read individually—you have to see the bar code on the item in order to read it. However, RFID tags do not require line-of-sight in order to be read. The difference between the two product identification technologies is the level of efficiency: With a wireless reading device, it is possible to automatically read hundreds of RFID tags in one second.
Though the technology is expensive, retail stores expect extensive inventory savings in the long term. Wal-Mart is the first company to really push for the adoption of RFID, and has mandated that its 100 largest suppliers have an RFID system in place by January 2005. This past spring, Albertsons supermarket announced it would use the technology at the case and pallet level to improve efficiencies in consumer demand.
Grocery stores are also looking at RFID to save money in stolen, wasted or lost products. Testing it as an anti-theft device, some Kroger grocery stores are embedding the RFID microchips in their packaged meat that will trigger an alarm if a customer leaves the store without it being scanned at checkout. And the RFID feature allows employees to know if perishable dates, like those on medicine or milk, have expired. With RFID, lost sales from empty shelves will probably become a thing of the past.
The impact RFID will have on supermarket workers’ jobs is not fully recognized. It’s more likely the effects of this technology will be seen immediately in distribution centers at the case and pallet level, where the tracking speed may cut labor costs. A report this past summer suggests the use of RFID will affect the jobs of about four million workers who scan bar codes in the supply chain. The Yankee Group, a research and consulting firm that published the report, said there have already been job loss and job transitions in manufacturing as a result of RFID.
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