April 19, 2006
Tesco drops plans to introduce item-level RFID tagging
Tesco has cancelled plans to introduce item-level RFID tagging after a pilot scheme. Instead, the British retail chain will focus on pallet-level tagging.
Tesco says that tagging high-value items such as DVDs and computer games makes no business sense unless its suppliers attached the tags beforehand.
The retailer chain says that it was unable to find an efficient way of tagging entertainment items in its warehouses, during the pilot program.
However, a couple of positives emerged from the pilot program. Tesco was able to change the replenishment schedule for DVDs and games in its 1,252 stores across the UK. Moreover, using item-level tagging, Tesco's staff could see in real-time how many high-value goods they had in-store. Finally, they found during the pilot that the staff restocked shelves about 1.5 hours later than it was optimal.
Via ComputerWeekly
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