Study on Rfid Usage in Organized Retail Sector With Special Reference to Malls in Noida and...

8/9/2019 Study on Rfid Usage in Organized Retail Sector With Special Reference to Malls in Noida and Gurgaon”

1/71

Summer Internship Report

On

“STUDY ON RFID USAGE IN ORGANIZED RETAIL

SECTOR WITH SECIAL REFERENCE TO !ALLS IN

NOIDA AND GURGAON"

#$

A%i& Si''i%ui

A'mission No( )*SO#)+)+,)

Enro--ment No( )*+.)+)+/.

##A #0t1h o2 *+)*3)/

Un'er the Super4ision o2

Shri S0m0rth N0r0$0n ro2( De4i$0ni Roh0t5i

Desi5n0tion6 S0-es !0n05er GU7 S1hoo- o2 #usiness

Or50nis0tion A83ID G0-5oti0s Uni4ersit$

1 9 P a g e


2/71


3/71

GALGOTIAS UNI:ERSITY UTTAR RADESH

CERTIFICATE

-his is to certify that !r( A%i& Si''i%ui, a student of the #01he-or o2 #usinessA'ministr0tion7 has #or"ed under our guidance and supervision -his Summer Pro!ect.eport has the requisite standard and to the best of our "no#ledge no part of it has beenreproduced from any other summer pro!ect, monograph, report or boo"

/aculty +entor0 Prof De4i$0ni Roh0t5i Industry +entor S0m0rth N0r0$0nSchool f Business 2esignation Sales +anager Galgotias University rgani3ation AP451$

2ate 2ate

6 9 P a g e


4/71

A1;no


5/71

T0&-e o2 Contents

S(No(

Topi1 05e

No(

1

'

6

;

Benefits

Present Study 5 .esearch

Analysis

• ./I2 vs Bar ?ode

• 2ra#bac"s of ./I2

• /uture 2irections

?onclusion

.eferences

Appendices

%

(

1( 6$

6; 6(

;%


6/71

E=e1uti4e Summ0r$

=9panding at @ in current value terms over '$$;, retailing too" a big leap for#ard in'$$


7/71

)on5store retailing remains insignificant, #ith its value contribution pegged at 1 inoverall retailing for '$$


8/71

verticals +any people e9pected the mar"et to gro# much more quic"ly than it has, but itis evolving steadily ./I2 has the potential to be a transformative business technology 5 atechnology #ith the potential to radically change the #ay companies and entire industriesfunction day to day -his report e9amines the reasons retailers are adopting ./I2 and#ays they #ill reali3e an .I, as #ell as the possible business process changes it #ill

bring about

-he vendors need to overcome challenges associated #ith the ./I2 Scanning Process.etailers8 need to improve customer satisfaction and increase sales is driving the demandfor radio frequency identification *./I2 technologies /or sustaining this demand,vendors #ill have to equip themselves #ith products that enable retailers to ma"e anincremental transformation to an integrated, ./I25enabled sense5and5respondenvironment Besides increasing the efficiency of read rates at the point of sale *PS,they must also resolve issues surrounding the ability of ./I2 to pic" up signalseffectively from liquid or metal ob!ects Hendors must "eep in mind that #hile initial./I2 pro!ects are e9pected to focus on pallet and case5level implementations, item5level

solutions that offer real5time access to inventory levels and customer data across the storeare also e9pected to gain in popularity

/aced #ith operational efficiency pressures, high employee turnover and dips in customer loyalty, retailers must either drive do#n cost or create ne# specialty niches -o stay aheadin this rapidly transforming industry, for#ard5thin"ing retail e9ecutives are as"ing ho# to"eep up #ith competition and gro# their businesses ./I2 technology tied to a customer,resource or asset at the item level can generate higher revenues, greater customer serviceopportunities, #ider margins and capital optimi3ation

-his pro!ect report is an attempt to e9plain #hy ./I2 matters for retailers, describes thein5store ./I2 capabilities and illustrates the potential payoff of a fully ./I2 enabledretail environment

@ 9 P a g e


9/71

Intro'u1tion

.etail is India8s largest industry, accounting for over 1$ per cent of the country8s G2P

and around eight per cent of the employment .etail industry in India is at the crossroadsIt has emerged as one of the most dynamic and fast paced industries #ith several playersentering the mar"et But because of the heavy initial investments required, brea" even isdifficult to achieve and many of these players have not tasted success so far Co#ever,the future is promising, the mar"et is gro#ing, government policies are becoming morefavorable and emerging technologies are facilitating operations

.etailing in India is gradually inching its #ay to#ards becoming the ne9t boom industry-he #hole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution for shopping in India +odern retail has entered Indiaas seen in spra#ling shopping centers, multistoried malls and huge comple9es offer

shopping, entertainment and food all under one roof -he Indian retailing sector is at aninfle9ion point #here the gro#th of organi3ed retailing and gro#th in the consumption bythe Indian population is going to ta"e a higher gro#th tra!ectory -he Indian population is#itnessing a significant change in its demographics A large young #or"ing population#ith median age of '; years, nuclear families in urban areas, along #ith increasing#or"ing5#omen population and emerging opportunities in the services sector are going to be the "ey gro#th drivers of the organi3ed retail sector in India

-he structure of a country8s retail sector has an enormous influence on the mar"etingstrategy and mar"eting activities of firms -he Indian retail sector has arrived at a verycritical stage Stores in modern formats have emerged in metropolitan cities but the bul"

of retail sales happen through traditional retail formats +odern formats such asdepartment stores, discount stores, supermar"ets, convenience stores, fast food outlets,specialty stores, #arehouse retailers and hypermar"ets have emerged .etailing has no# become more organi3ed and chain stores have been gro#ing at the e9pense of independent shops

India has sometimes been called a nation of shop"eepers -his epithet has its roots in thehuge number of retail enterprises in India, #hich totaled over 1' million in '$$6 AboutD@ of these are small family businesses utili3ing only household labour =ven amongretail enterprises that employ hired #or"ers, the bul" of them use less than three #or"ers

Indias retail sector appears underdeveloped not only by the standards of industriali3edcountries but also in comparison #ith several other emerging mar"ets in Asia andelse#here -here are only 1; companies that run department stores and t#o #ithhypermar"ets Ehile the number of businesses operating supermar"ets is higher *6@< in'$$6, most of these had only one outlet -he number of companies #ith supermar"etchains #as less than 1$

( 9 P a g e


10/71


11/71

Globali3ation of Indian =conomy

-otal Private ?onsumption =9penditure in India K 6D< Billion US2

.etail Sale K '$< Billion US2 *


12/71

Cence, sales from these large format stores are predicted to e9pand at gro#th ratesranging from '; to ;( per year during '$$65'$16 Co#ever, such rapid gro#th isfrom a small base Cence, they #ill continue to account for only a small share of totalretail sales in '$16

Go4ernment po-i1$

-here has been vigorous opposition to foreign direct investment */2I in retailing fromsmall traders #ho fear that foreign retailing companies #ould ta"e a#ay their business,lead to the closure of many small trading businesses and result in considerableunemployment Given the political clout of the small trading community, because of their enormous numbers, the government has barred /2I in retailing since 1((D

At present, foreign retailers can only enter the retailing sector through franchisingagreements At present, foreign direct investment */2I in pure retailing is not permittedunder Indian la# India is today the only ma!or economy that still does not permit /2I in

retail trade In ?hina, 6< of the #orlds top D$ retailers have already entered and set up business -hey have helped boost e9ports Eal5+art alone e9ported in '$$' about J1' billion #orth of goods

Ret0i-in5 in In'i0

Indian retail sector is highly fragmented as compared to the developed as #ell as theother developing economies -his sho#s a great potential for the organi3ed retail industryto prosper in India, as the mar"et for the final consumption in India is very large .etailtrade is largely in the hands of private independent o#ners and distribution structure for fast moving consumer goods consisted of multiple layers such as carrying and for#arding

agents, distributors, stoc"ists, #holesalers and retailers -he retailing system in Indiaoperated at three parallel levels0 the formal sector, informal sector and the fair price shopsunder the government8s public distribution system

=mergence of modern retail formats

Increased pressure on opening up /2I in retail sector

.apid =volution of )e#5age oung Indian ?onsumers

.apidly increasing middle class

.ising Incomes levels

Increased A#areness evel among ?onsumers

=9posure to International Brands

1' 9 P a g e


13/71

.etail Space is no more a constraint for gro#thL1

Ret0i-in5 Form0ts In In'i06 -he traditional formats li"e ha#"ers, grocers andtobacconist shops co e9ist #ith modern formats li"e supermar"ets and non store retailing

channels such as multi level mar"eting and teleshopping +odern stores tend to be larger,carry more stoc" "eeping units have a self service format and an e9periential ambience+odern formats also tend to have higher levels of sales per unit of space, stoc" turnover and gross margin but lo#er levels of net margin as compared to traditional formats Inrecent years, there has been a slo# spread of retail chains in some formats

Indias retail sector is #earing ne# clothes and #ith a three5year compounded annualgro#th rate of ;%%; per cent, retail is the fastest gro#ing sector in the Indian economy-raditional mar"ets are ma"ing #ay for ne# formats such as departmental stores,hypermar"ets, supermar"ets and specialty stores Eestern5style malls have begunappearing in metros and second5rung cities ali"e, introducing the Indian consumer to anunparalleled shopping e9perience

-he glass and metal facade of the Sahara +all in Gurgaon, a thriving to#nship south#estof )e# 2elhi, loo"s li"e a perfect emblem of the ne# India =mbla3oned #ith logos of clothing stores, gift shops and fast5food restaurants, the malls glistening e9terior seemsto capture the e9uberance of Indias economic boom -he scenario regarding malls haschanged over a period of time and is all set to #itness a huge change in the times tocome

S0h0r0 !0-- !otion Disp-0$7 Gur50on

Gurgaon is set to get the mother of all malls 5 a humungous ;$5la"h sq ft spra#ling property that is being touted by its developer 2/ Universal as the biggest mall of the

16 9 P a g e

http://www.signaturesignsmedia.com/picnew/Motion%20Display%20at%20Sahara%20Mall.JPG


14/71

#orld -he average si3e of malls here is '< la"h sq ftM this #ill be 1% times bigger -hemall 5 christened +all of India 5 #ill be spread over 6' acres and #ill have par"ing spacefor 1$,$$$ cars -hese ambitious plans have been dra#n up at a time #hen footfalls aredo#n at Gurgaon malls and rental rates have virtually halved

6

S0h0r0 !0--7 Gur50on

But 2/ is unfa3ed It says Gurgaon #ith so many malls #ill soon develop as a megashopping district in the )?. region

A decade ago 5 not a single mall

A year ago 5 less than half a do3en

-oday K @$ to 1$$ malls

' years from no# K 6$$ to


15/71

)?. , +umbai, Bangalore, 4ol"ata, Cyderabad > ?hennai #ith )?. > +umbai aloneaccounting for almost %$ of these ne# malls Co#ever, by '$1


16/71

/+?G manufacturers and even today there are some companies #ho have still notimplemented barcodes It is believed that there is a real need for ./I2 technology butthat it should be focused #here it provides real return on investment such as in the supplychain

-he Indian retail mar"et is estimated at USJ 6s !0ni0 2or !0--s

-he glass and metal facade of the Sahara +all in Gurgaon, a thriving to#nship south#estof )e# 2elhi, loo"s li"e a perfect emblem of the ne# India =mbla3oned #ith logos of clothing stores, gift shops and fast5food restaurants, the malls glistening e9terior seemsto capture the e9uberance of Indias economic boom Inside, ho#ever, e9cept for a busyrestaurant and supermar"et, business is sluggish, and many shops are slathered #ith signs proclaiming SA= -he customer response has been far belo# our e9pectations, many people come to the mall to loo" around, but very fe# actually buy anything

Both for locals and for visitors from abroad, nothing seems to symboli3e Indiastransformation from a stagnant third5#orld country into an emerging economic super5 po#er as much as its spar"ling ne# malls American brand names li"e evis and

+c2onalds clutter the air5conditioned interiors, teenagers in lo#5cut !eans hang out ingroups, cappuccino is sold at "ios"s, and everyone appears to be having a great time=ager to cash in, Indias real estate developers are in fren3y0 up to %$$ malls are li"ely to be up and running in India by the end of '$1; up from '$ malls this year According to4SA -echnopa", a )e# 2elhi5based consulting firm the capital is the epicenter of the boom, #ith as many as 1$$ malls Some estimates put the number at 1


17/71

+iddle5class Indians are still hesitant about spending in malls because they thin" pricesare higher here As a result the retailers ac"no#ledge that they have to pay more for rentand electricity than if their store #ere outside a mall Still many Indians are convincedthat mall5based stores charge more, so they tend to "eep their #allets closed Accordingto 4SA -echnopa", the conversion rate 5 the percentage of visitors #ho turn into

shoppers is as lo# as 1$51


18/71

do3en malls Indeed, the ?ity ?entre +all sho#s that #ith the right blend of good design,top brand names and a central location, malls can be successful in India

et even retailers #ho are doing #ell #orry about the plethora of ne# malls set to opensoon -here #ill be a huge diversion of people into other malls once more and more malls

come up Indeed, a cloud hangs over the future of Gurgaon, #ith up to '$ mallsscheduled to open in the ne9t couple of years )e# malls #ill soon be built in the upper5class 2elhi neighborhood of Hasant 4un!, and #ill li"ely slash the inflo# of #ealthy2elhiites into Gurgaon Ee #ill see some big reductions in the numbers at Gurgaon mallsand they #ill become less profitable for the retailers

Ehats driving Indias mania for mallsO In many cases, its the loot5and5scoot model ousee an opportunity, you build a mall, and you sell out and leave +all builders li"eUnitech and 2/ ac"no#ledge that there has been speculative mall building, but blame iton smaller competitors that lac" their long5term vision Instead of putting a chec" on themall5building glut, Indias state and local governments are all too happy to encourage it

Governments sell land because they get great prices for it Co#ever, an administrator #ith the Caryana Urban 2evelopment Authority *CU2A, #hich oversees thedevelopment of Gurgaon, denies that the government has been rec"less in sanctioningne# malls, asserting that '$ or '< malls is not too much for Gurgaon

Another concern is that India doesnt yet have the infrastructure needed to support all of its ne# malls -he daily e9odus of shoppers from 2elhi to Gurgaons malls is alreadycreating e9cruciating delays on the roads, but thats only the start of the trouble -heelectricity supply is unreliable in Gurgaon because of #hich malls #ill have to run their o#n diesel5po#ered generators, #hich #ill cause significant pollution And because the#ater supply is also sha"y, many of the malls #ill have to dig #ells and suc" upground#ater, thus lo#ering the #ater table in the region Such environmental concernsare a "ey reason to proceed #ith caution before sanctioning more construction of malls

Sitting in the food court on the top floor of the +ega +all, the latest shopping emporiumto open in Gurgaon, #ith 2ominos Pi33a and Sub#ay close at hand, its easy to imagineyoure in a city li"e )e# or" or Sydney et Indias mall boom is premature for thecountrys level of economic development Incomes in India have gro#n, no doubt, but #eneed to gro# much faster, at 1$ for five or si9 years, li"e ?hina before #e can supportall these malls It is predicted that the bul" of the countrys retail business #ill move intomalls #ithin a fe# years +ore Indians are starting to buy at malls, as retailers get better at pitching goods 4SA -echnopa" is also bullish about the future of malls but adds, NItsvery li"ely that quite a fe# of the ne# malls #ill see occupancy rates of only


19/71

Ch0pter *6 RFID Te1hno-o5$

Wh0t is RFID

.adio /requency Identification *./I2 is a dedicated short range communication*2S.? technology -he term ./I2 is used to describe various technologies that useradio #aves to automatically identify people or ob!ects ./I2 technology is similar to the bar code identification systems #e see in retail stores everyday Co#ever one bigdifference bet#een ./I2 and bar code technology is that ./I2 does not rely on the line5of5sight reading that bar code scanning requires to #or"

./I2 is an automatic identification method, relying on storing and remotely retrievingdata using devices called ./I2 tags or transponders An ./I2 tag is an ob!ect that can beattached to or incorporated into a product, animal, or person for the purpose of

identification using radio #aves ?hip5based ./I2 tags contain silicon chips andantennas

An RFID T05 use' 2or W0-3!0rt

In simpler #ords, RFID is a data-collection technology that uses electronic tags to storeidentification information, and a wireless device - known as a reader - to capture and transmit that data.

An ./I2 system typically includes the follo#ing components0

A tag or label that is embedded #ith a single chip computer and an antenna -he antennacan be printed on the tag #ith carbon5based in"s -he tag is an e9tension of the bar code

labels you see in stores today, but #ith more intelligence

A radio *much li"e a #ireless A) radio that communicates #ith the tag 7Passive:tags, the type of tags commonly used in retail supply chain systems, pic" up enoughenergy from the radio to operate and to communicate bac" to the radio 7Active: tagshave an embedded battery and offer the advantage of longer5range communications

Histor$ o2 RFID t05s

1( 9 P a g e

http://en.wikipedia.org/wiki/Image:EPC-RFID-TAG.jpg


20/71

In 1(;%, Qon -heremin invented an espionage tool for the Soviet government #hichretransmitted incident radio #aves #ith audio information Sound #aves vibrated adiaphragm #hich slightly altered the shape of the resonator, #hich modulated thereflected radio frequency =ven though this device #as a passive covert listening device,not an identification tag, it has been attributed as the first "no#n device and a predecessor

to ./I2 technology -he technology used in ./I2 has been around since the early 1('$saccording to one source A more similar technology, the I// transponder, #as invented bythe British in 1(6( and #as routinely used by the allies in Eorld Ear II to identifyairplanes as friend or foe -ransponders are still used by military and commercial aircraftto this day

An RFID t05 use' 2or e-e1troni1 to-- 1o--e1tion

+ario ?ardullos US Patent 6,D16,1;@ in 1(D6 #as the first true ancestor of modern./I2, a passive radio transponder #ith memory -he initial device #as demonstrated in1(D1 to the )e# or" Port Authority and consisted of a transponder #ith 1% bit memoryfor use as a toll device -he basic ?ardullo patent covers the use of ./, sound and light astransmission medium -he original business plan presented to investors in 1(%( sho#eduses in transportation *automotive vehicle identification, automatic toll system, electroniclicense plate, electronic manifest, vehicle routing, vehicle performance monitoring, ban"ing *electronic chec" boo", electronic credit card, security *personnel identification,automatic gates, surveillance and medical *identification, patient history -he firstdemonstration of today8s reflected po#er *bac"scatter ./I2 tags, both passive andactive, #as done at the os Alamos Scientific aboratory in 1(D6

The Te1hno-o5$ &ehin' RFID

Eith ./I2, the electromagnetic or electrostatic coupling in the ./ *radio frequency portion of the electromagnetic spectrum is used to transmit signals An ./I2 systemconsists of an antenna and a transceiver, #hich reads the radio frequency and transfer theinformation to a processing device *reader and a transponder, or ./ tag, #hich containsthe ./ circuitry and information to be transmitted -he antenna provides the means for the integrated circuit to transmit its information to the reader that converts the radio

'$ 9 P a g e

http://en.wikipedia.org/wiki/Image:FasTrak_transponder.jpg


21/71

#aves reflected bac" from the ./I2 tag into digital information that can then be passedon to computers that can analy3e the data

In a nut shell, the ./I2 system consists of an antenna, transceiver, reader #hich is the processing device and an ./ tag -he transceiver reads the radio frequency and transfers

the information to the reader *processing device via the antenna -he radio #avesreflected from the ./ tag are then converted into digital information #hich is used toanaly3e the data

In ./I2 systems, the tags that hold the data are bro"en do#n into t#o different typesPassive tags use the radio frequency from the reader to transmit their signal Passive tags#ill generally have their data permanently burned into the tag #hen it is made, althoughsome can be re#ritten Passive tags require no internal po#er source

Active tags are much more sophisticated and have on5board battery for po#er to transmittheir data signal over a greater distance and po#er random access memory *.A+ giving

them the ability to store up to 6',$$$ bytes of data

T$pes o2 RFID T05s

0ssi4e T05s

Passive ./I2 tags have no internal po#er supply -he minute electrical current inducedin the antenna by the incoming radio frequency signal provides !ust enough po#er for the?+S integrated circuit in the tag to po#er up and transmit a response +ost passivetags signal by bac"scattering the carrier signal from the reader -his means that the

antenna has to be designed to both collect po#er from the incoming signal and also totransmit the outbound bac"scatter signal -he response of a passive ./I2 tag is notnecessarily !ust an I2 number, the tag chip can contain non5volatile ==P.+ for storingdata

0ssi4e RFID T05s

'1 9 P a g e


22/71

-he lac" of an onboard po#er supply means that the device can be quite small?ommercially available products e9ist that can be embedded in a stic"er, or under thes"in As of '$$%, the smallest such devices measured $1< mm R $1< mm, and arethinner than a sheet of paper *D< micrometers -he lo#est cost =P? ./I2 tags, #hichare the standard chosen by Eal5+art, 22, -arget, -esco in the U4 and +etro AG in

Germany, are available today at a price of < cents each -he addition of the antennacreates a tag that varies from the si3e of a postage stamp to the si3e of a post card Passivetags have practical read distances ranging from about 1$ cm *; inches up to a fe# metersdepending on the chosen radio frequency and antenna design&si3e 2ue to their simplicityin design they are also suitable for manufacture #ith a printing process for the antennas

)on5silicon tags made from polymer semiconductors are currently being developed byseveral companies globally Simple laboratory printed polymer tags operating at 16


23/71

+any active tags have practical ranges of hundreds of meters and a battery life of up to1$ years Some active ./I2 tags include sensors such as temperature logging #hich have been used in concrete maturity monitoring or to monitor the temperature of perishablegoods ther sensors that have been married #ith active ./I2 include humidity,shoc"&vibration, light, radiation, temperature and atmospherics li"e ethylene

Active tags typically have much longer range *appro9imately 6$$ feet and larger memories than passive tags, as #ell as the ability to store additional information sent bythe transceiver -he United States 2epartment of 2efense has successfully used activetags to reduce logistics costs and improve supply chain visibility for more than 1< yearsAt present, the smallest active tags are about the si3e of a coin and sell for a fe# dollars

./I2 tags are being used in passports issued by many countries -he first ./I2 passports*Ne5passportsN #ere issued by +alaysia in 1((@ In addition to information alsocontained on the visual data page of the passport, +alaysian e5passports record the travelhistory *time, date, and place of entries and e9its from the country

./I2 tags are included in ne# U4 and some ne# US passports, beginning in '$$% -heUS produced 1$ million passports in '$$< and it has been estimated that 16 million #ill be produced in '$$% -he chips #ill store the same information that is printed #ithin the passport and #ill also include a digital picture of the o#ner -he passports #ill

incorporate a thin metal lining to ma"e it more difficult for unauthori3ed readers toNs"imN information #hen the passport is closed

'6 9 P a g e


24/71

E-e1troni1 ro'u1t Co'e ?EC@

ne of the driving forces in ./I2 adoption is the emergence of =lectronic Product ?ode*=P? concepts In 1((@ researchers at the +assachusetts Institute of -echnology *+I- proposed a system5level approach to automatic ob!ect identification to solve

interoperability issues and reduce the related hard#are and soft#are costs -he +I-Auto5I2 ?enter reali3ed that the "ey to lo#5cost ./I2 technology #as to focus onreducing functionality on the tag by storing a unique identifier, called an =lectronicProduct ?ode *=P? that acts as a license plate, pointing to more information of thetagged item stored in a data base -his ma"es the tag simple, improving the read rates-hey also reali3ed that developing global standards to allo# interoperability is "ey todriving adoption and reducing tag prices

-he =P? is a globally unique serial number that identifies an item as it moves throughmanufacturing, transport and use -he unique number allo#s inquiries to be made about asingle item, #herever it is

In '$$6, the research and intellectual property from the +I- Auto5I2 ?enter #astransferred to a !oint venture bet#een =A) International and the U??M this ne#organi3ation is no# called =P?global It is a non5profit organi3ation driving the globaladoption and implementation of the =P?global )et#or" across industry sectors=P?global develops and oversees standards for the =lectronic Product ?ode *=P? )et#or" Additionally, =P?global provides a global =P? number registry service for electronic product codes -he =P? )et#or" begins #ith the =lectronic Product ?ode*=P? =ssentially, the =P? is the electronic equivalent of the UP? barcode It is a stringof characters that uniquely identifies any tagged item Co#ever, instead of referring to aclass of products, li"e UP?s do today, the =P? refers to a specific instance of product In

essence the =P? is a single I2 built upon smaller I2s that represent the manufacturer, product identification *or model, and a serial number for that particular item

-he =P? is embedded in a ./I2 tag, primarily a lo# cost passive read5only tag onindividual products or cases Ehen a reader scans each tag, it #ill transmit bac" itsunique =P? code -his is done #ith little to no manual effort required compared to the#or" required to open bo9es and align a barcode #ith its visual scanner -he =P? tagstandard does not preclude other tags #ith read5#rite functionality or even moreadvanced capabilities Co#ever, as additional tag functions and capabilities increase, sodo the related manufacturing costs for that tag

RFID Fre%uen1ies

+uch li"e tuning in to your favorite radio station, ./I2 tags and readers must be tunedinto the same frequency to enable communications ./I2 systems can use a variety of frequencies to communicate, but because radio #aves #or" and act differently atdifferent frequencies, a frequency for a specific ./I2 system is often dependant on its

'; 9 P a g e


25/71

application Cigh frequency ./I2 systems *@


26/71

goods #ill be trac"ed preferably by the pallet using ./I2 tags and at pac"age level #ithUniversal Product ?ode *UP? or =A) from unique barcodes

-he unique identity in any case is a mandatory requirement for ./I2 tags, despite specialchoice of the numbering scheme ./I2 tag data capacity is big enough that any tag #ill

have a unique code, #hile current bar codes are limited to a single type code for allinstances of a particular product -he uniqueness of ./I2 tags means that a product may be individually trac"ed as it moves from location to location, finally ending up in theconsumers hands -his may help companies to combat theft and other forms of productloss +oreover, the tracing bac" of products is an important feature that gets #ellsupported #ith ./I2 tags containing not !ust a unique identity of the tag but also theserial number of the ob!ect -his may help companies to cope #ith quality deficienciesand resulting recall campaigns, but also contributes to concern over post5sale trac"ingand profiling of consumers

It has also been proposed to use ./I2 for Point of Sale *PS store chec"out to replace

the cashier #ith an automatic system #hich needs no barcode scanning Co#ever, this isnot li"ely to be possible #ithout a significant reduction in the cost of current tags andchanges in the operational process around PS

GS1 and GS1 US operate the !oint venture =P?global =P?global is #or"ing oninternational standards for the use of ./I2 and the =P? in the identification of any itemin the supply chain for companies #orld#ide -he =lectronic Product ?ode *=P? is afamily of coding schemes for Gen ' ./I2 tags It is designed to meet the needs of various industries, #hile guaranteeing uniqueness for all =P?5compliant tags -he =P?accommodates e9isting coding schemes and defines ne# schemes #here necessary -he=P? system is currently managed by =P?global, Inc, a subsidiary of GS1, creators of the

UP? barcode -he =lectronic Product ?ode promises to become the standard for global./I2 usage, and a core element of the proposed =P?global )et#or"

-he future has arrived at a +=-. Group supermar"et in .heinberg, Germany +=-.has redesigned one of its =9tra grocery stores to create a sho#case of transformationaltechnologies Among the store8s many advanced features is an ./I25enabled inventorymanagement system that controls stoc" levels via 7smart: tags

As pallets of goods leave the distribution center, the smart tags are read -he storemanager can then trac" each shipment through the #arehouse information system,"no#ing #hich products to e9pect and #hen they are due Ehen pallets arrive, another ./I2 tag reading reveals if any cases are missing, eliminating the need to physicallychec" each pallet and count the shipment Plus, +=-. is e9perimenting #ith smartshelf technology, through #hich individual items are tagged An ./I2 reader embeddedon the shelf sends a message to the store8s bac" office system #hen items are placed onor removed from the shelves -his allo#s the store to restoc" inventory on demand andavoid lost sales due to empty shelves In addition, the system trac"s ho# quic"ly stoc" issold, identifying the most and least popular items

'% 9 P a g e


27/71


28/71

RFID in the Ret0i- In'ustr$

Imagine a shopping cart equipped #ith a scanner and a touch5screen computer that acts as

a virtual personal shopper As you scan items and put them in your cart, the computer offers information about each product and suggests complementary items -he computer "eeps a list of the items in your cart #ith a running total so you "no# e9actly ho# muchyoure spending Ehen finished shopping, you head to a self5chec"out stand or to acashier Because your items are already totaled and bagged, the #ait time is minimal Allyou have to do is pay

-he po#er behind this hassle5free shopping e9perience is radio frequency identification*./I2 technology ./I2 is helping retailers around the #orld improve customer satisfaction and increase sales -he technology is transforming the retail industry byoffering retailers real5time visibility into inventory and product movement to improve

store productivity and loss prevention +any of the #orlds largest retailers havemandated ./I2 tagging -his move affects more than ',$$,$$$ manufacturers andsuppliers, driving the #orld#ide mar"et for hard#are and soft#are to support ./I2

-he retail mar"et is possibly the most tal"ed about in the ./I2 industry Although Eal5+art is not the only retailer that has issued an ./I2 mandate for its suppliers, it is stillthe most popular sub!ect -his mar"et is e9pected to be one of the fastest gro#ing ./I2verticals +any people e9pected the mar"et to gro# much more quic"ly than it has, but itis evolving steadily ./I2 has the potential to be a transformative business technology 5 atechnology #ith the potential to radically change the #ay companies and entire industriesfunction day to day -his report e9amines the reasons retailers are adopting ./I2 and

#ays they #ill reali3e an .I, as #ell as the possible business process changes it #ill bring about

-he vendors need to overcome challenges associated #ith the ./I2 Scanning Process.etailers8 need to improve customer satisfaction and increase sales is driving the demandfor radio frequency identification *./I2 technologies /or sustaining this demand,vendors #ill have to equip themselves #ith products that enable retailers to ma"e anincremental transformation to an integrated, ./I25enabled sense5and5respondenvironment Besides increasing the efficiency of read rates at the point of sale *PS,they must also resolve issues surrounding the ability of ./I2 to pic" up signalseffectively from liquid or metal ob!ects Hendors must "eep in mind that #hile initial

./I2 pro!ects are e9pected to focus on pallet and case5level implementations, item5levelsolutions that offer real5time access to inventory levels and customer data across the storeare also e9pected to gain in popularity

Ret0i- in'ustr$ tren's 'ri4in5 RFID 0'option

'@ 9 P a g e


29/71


30/71

-his means that #here and ho# you meld ne# technologies #ith your strategic businessob!ectives #ill impact the success and potentially survival of your retail organi3ationEhen coupled #ith a fle9ible I- infrastructure that supports business process and dataintegration, ./I2 technology can enable you to streamline operations, drive out costs and

e9pand sales margins, increase revenues, command customer loyalty and targetmar"eting to individual shopper needs And as consumers increasingly recogni3e thevalue and convenience enabled by ./I2, it #ill become a mainstream feature of tomorro#8s retail #orld

Wh0t 'oes RFID o22er to Ret0i-ers

.etailers face the constant demand to have the right goods available at the right places inthe right quantities /irst and foremost, incorporating ./I2 technology into e9isting

supply chain operations can reduce the labor required to monitor goods movement andinventory flo# Bar code5based trac"ing systems are an effective tool for basic inventorytrac"ing Used in con!unction #ith a bar code system or as a stand5alone inventorytrac"ing application, ./I2 allo#s manufacturers and retailers to complement e9istingsystems #hile gathering more information through out a supply chain

Systems #ith the po#er to update the information that moves #ith an individual product provide complete supply chain visibility #ithout the prohibitive labor costs and error rates a similar manual system #ould entail

./I2 also can act li"e a security guard at a gate#ay As goods are moved from doc" to

truc" to store, ./I2 can conduct automatic inventories and compare the goods #ith themanifest Goods flo# becomes more complete, stoc" outs are reduced, overages arecurtailed and accounting discrepancies are removed

RFID Imp-ement0tion in In'i0

./I2 in retail and manufacturing

?ompany

./I2

application Goal Benefits

Pantaloon Pilot at its-arapur#arehouse#ith 1,$$$tagsApplication

-o improvethe efficiencyof its supplychain andintroduceitem5level

• -ime saved in

scanning items is@$

• .eal time visibility

of items at all thestages of S? up by

6$ 9 P a g e


31/71

developed by EiproInfotech isintegrated#ith the

racle 1$gdatabase andmiddle#are

tagging foridentificationalong #ith./I2hard#are

(@

• Improved accuracy

+aduraGarments

-agsgarmentsgoing to itscentral#arehouse

Eillimplement./I2 at theretailsho#room asa proof ofconcept

• Increased sales

• Better labor

utili3ation• =asy stoc" ta"ing

• Productivity

enhanced

Asho"eyland

Pilot pro!ect#ith CP atits productiondevelopmentarea ./I2is being usedin theengine5testing area

Processingengineinformationmoreefficiently

• Automated process

• ?ost reduction

• =nhanced error5

proofing

61 9 P a g e


32/71

RFID te1hno-o5$


33/71


34/71

6; 9 P a g e


35/71

LD

-he figure above tal"s about delivering a dynamic customer shopping e9perience via asense5and5respond store environment It reflects a visionary retail store environment after the implementation of ./I2 technology -he diagram tal"s about the entire processes insequence inside a retail store even before the customer enters the store It ta"es intoaccount all minute details #hich are utili3ed in improving the efficiency of the store sothat the retail place is a perfect place to shop and therefore must provide an ultimateshopping e9perience to the customer All such details are to be ta"en into considerationand acted upon immediately because all the processes need to #or" simultaneously for

the customer to e9perience a perfect shopping e9perience

otenti0- imp01t o2 RFID on the Ret0i- Enterprise

6


36/71

./I2 has an impact on the retail store in many #ays -he mar"et life cycle of adoptionvaries accordingly and has a ma!or influence on the acceptance rate of the technology

L@

-he graph above sho#s the mar"et life cycle adoption of the technology over a period of time It #as in the year '$$; #hen the technology became visible to the mar"et and in

'$$% there has been a decline in the acceptance But no# the technology8s rate of acceptance is increasing steadily and is sure to bring about a ma!or change in the retailmar"et

-he interest in ./I2 is reaching its pea" no#, but it is questionable if ./I2 #ill deliver all that it can, and all that has been promised in the near term But one thing is sure that./I2 #ill be one of the most strategic technologies that retailers embrace

A'option o2 RFID

-he question arises is that #hether the consumers #ill adopt ./I2O -he ans#er to this isa bit tric"y because of various reasons According to the GartnerG' report, a surveyconducted in September '$$6, there is a mi9ed reaction about the adoption of theupcoming technology from the customer8s perspective It is visible form the survey thatthe percentage of respondents #ho are very #illing to adopt ./I2 for various benefits islo# #hen compared to those #ho are some#hat #illing It sho#s that the inspite of huge benefits from the technology, the customers are not much #illing to accept it -his may be because of lac" of "no#ledge #ith respect to the technology, etc

6% 9 P a g e


37/71

L@

./I2 technology is very useful #hen it comes to the management of inventory andachieving customer e9perience But the customers ta"e it in a different #ay, they probably have to pay more for the same product because of the cost of ./I2 tag on it-he benefits are there but then its perceptions vary from customer to customer /rom thesurvey it can be concluded that the respondents under survey are some#hat #illing toaccept ./I2 tags on the products in e9change for the services being offered to them

./I2 adoption is paced by t#o interloc"ing phenomenon0 cost and ubiquity At today8s

price point for tags, most applications ma"e sense only if the tags can be used over ane9tended period of time or recycled and reapplied -his is #hy most current ./I2implementations involve some form of asset trac"ing or security application in closed5end systems rgani3ations throughout the industry are #or"ing to develop national andinternational ./I2 standards for various ./I2 applications, even as mar"et adoptionadvances -his combination of effort 5 standards operation and mar"et adoption 5 can bee9pected to result in ./I2 systems that are both interoperable and affordable

RFID App-i10tions B #ene2its6D 9 P a g e


38/71

Imagine a store in #hich you !ust #al" in and pic" up the required items from shelvesand !ust #al" out )o #aiting in long queues for billing or no #astage of time and effort-rac"ing of items, pricing, total billing #ould be done automatically and total bill amount

#ould be deducted from customers credit card account -his could be a reality #ith./I2 enabled stores

./I2 systems collect accurate and real5time data and communicate it via radio #aves Atypical ./I2 system has three components, tags, reader and ./ unit -he ./ reader sendsout ./ #aves that are received by the ./ tag #ithin the readers range -he tag in turn,sends information bac" to the reader, also in the form of ./ #aves -hen the ./ reader transfers this information to ./ unit

In4entor$ Contro-

./I2 technology finds its applications in various commercial sectors for e9ample, atvarious stages of a supply chain, inventory management in a #arehouse, access controlfor buildings, trac"ing passenger baggage in the airline industry, animal trac"ing ./I2holds great potential for inventory management for todays supply chains Inventorymanagement is an important aspect of supply chain management

=ffective inventory management depends upon consolidating, integrating, and analy3ingdata collected from many sources such as, distribution centers and #arehouses?onventional trac"ing systems require manual intervention, #hich is labor intensive, timeconsuming, and error5prone L(

n the other hand, the use of ./I2 technology has significant advantages over theconventional methods, these are discussed belo#0

In4entor$ monitorin5 0n' 0sset 4isi&i-it$ Sm0rt She-4es

In a replenishment5based system, #henever the total inventory at a #arehouse or distribution center drops belo# a certain level, the ./I2 enabled system could place anautomatic order ./I25tagged products #ill allo# stores to trac" the location and countof inventories in real time -his #ill better monitor demand for certain products and place

orders to prevent an out5of5stoc" situation -he high levels of inventory monitoringobtained using ./I2 can particularly benefit /+?G industries

oS D0t0

6@ 9 P a g e


39/71

n the retailing side, ./I2 technology at the point5of5sale *PoS can be used to monitor demand trends or to build a probabilistic pattern of demand -his application could beuseful for apparel industry or products e9hibiting high levels of dynamism in trends

Re'u1e' #u--


40/71

?onventional systems limit trac"ing of items #hile being transported ./I2 Systemsgives a total visibility of product movement in the supply chain -his may help to ma"eearly decisions about inventory control in case there is any interruption in the supply It partially or completely eliminates time and effort required for counting #hileloading&unloading the items -his results into reduction of total lead5time for arrival of an

order Pharmaceutical industry, perishable product industry could use ./I2 systems for reducing lead5times that #ill help to increase total useful shelf life of items

Impro4es sortpi1; r0te

In a #arehouse, sorting&pic"ing activity is more time consuming and sub!ected to errors/or e9ample, for issuing of items from a store, a person has to find out #hether the itemis available in store or not by physically moving to the location Items issued should be"ept in a particular position *bar5code up#ard in a pallet for scanning&billing purposes./I2 systems ease the sorting and pic"ing operations, as it captures real5time, accurate

information about product availability in host computer database #ithout physicalmovement ./I2 tags are read via radio frequencies therefore it is not mandatory to placethe items in a particular position to read it -his could be helpful for effective #arehousemanagement

Re'u1e' in4entor$ shrin;05e

As items are continuously monitored, Inventory shrin"ages including thefts,misplacement of items can be avoided using ./I2 technology

erish0&-e in4entor$ 1ontro-

A perishable product has limited useful life and if it is not handled properly #hiletransporting, it may get spoiled and its useful life reduces If this reduced life informationof items is not updated, then it may be possible that an outdated item gets delivered to acustomer In such a case, there may be an additional cost of replacement of item and alsoloss of good#ill of customer Such spoilage could be reduced simultaneously #ithautomating inventory management, by using ./I2 technology for product identification,#hile it moves through the supply chain ./I2 system can trac" the items in real time#ithout product movement, scanning or human involvement Using active ./I2 tags it

can be possible to update information on it dynamically

Issuin5 po-i1ies

;$ 9 P a g e


41/71

./I2 systems give e9act count and location of items -his #ill help to follo# a certainissuing policies for items as per the requirements =g0 /irst5in5first5out */I/ policy for items such as, vegetables, breadM or last5in5first5out *I/ for blood ban"s

Using ./I2 technology for data collection and some appropriate inventory algorithms

for replenishment decisions, many #arehousing processes can be automated such as,receiving, pic"ing, and ordering Harious enterprise applications, for e9ample =.P pac"ages, can be configured and lin"ed to ./I2 technology for direct and on5linecollection of data It could be possible to combine ./I2 and Bar coding technology for trac"ing of items to ta"e competitive advantages of both the technologies

./I2 implementation #ill depend on the cost of change to the ne# technology as #ell asthe benefits accruing from e9ploiting some of the possibilities that the technology bringsSeveral issues should be considered for successful ./I2 implementation evel of tagging has a greater influence on total ./I2 related costs -ags can be applied at item

level, case level or pallet level 2enser the level of tagging more #ould be informationgathered and higher #ould the associated costs

Co#ever, for all type of applications it is not the scenario #here denser the level of tagging higher #ould be the benefits attained It is important to select appropriate level of tagging for a particular type of application -ags can be applied at pallet level for lessvalued items, for e9ample, auto spares parts, /+?G items ?ase level tagging #ould beappropriate for perishable items in #hich e9piry date for all items in a case is same Palletand case level tagging #ould be useful for #arehouse management -he tags could beapplied to individual items for trac"ing of high valued items, for e9ample, goldornaments, baggage trac"ing

?urrent mar"et situation for ./I2 business is in developing phase +ost of thecompanies are implementing ./I2 on a trial basis to a small sector of their business, ie#arehouse, or distribution center Some of the mar"et leaders those #ho have alreadyimplemented ./I2 technology areM in retail sector, 2C, +c2onalds, -e9asInstruments, -escoM in automotive sector B+E, 2aimler?hrysler AG, Goodyear, inmanufacturing industry Boeing, Cyundai, -oyotaM in airline industry +c?arranInternational Airport, US, Hirgin Atlantic Air#ays

Ret0i-er Cost B #ene2its

;1 9 P a g e


42/71

-he graph above sho#s that there can be different types of costs incurred, namely,

soft#are > integration, training, equipment and maintenance )o# if each of the costsincurred for them are J1


43/71

utili3es Sensitechs -emp-ale ./ (1< +C3 active tag #ith a built5in sensor -he tagrecords the temperature #ithin a truc" compartment every 1$ minutes -hereprogrammable active tag has a 6$$5foot read range, says Schmidtberg, and can beattached either to the interior #all of the truc" above the cartons or on a pallet

?old Stream ? ?losed oop has improved their visibility into the supply chain -heyare no# able to monitor the processes to ensure optimal efficiencies and continuousimprovement, all the #hile reducing the costs associated #ith gathering and reporting thedata

RFID En0&-e' Ret0i- Supp-$ Ch0in

A simple Supply ?hain consists of end5customers or consumers #ho buy goods or services from a retailer at a store or through other channels, such as an e5commerce#ebsite -he retailer may stoc" the goods and tools to provide the services from a

#holesaler or a distributor -he distributor normally buys goods in large quantities from amanufacturer #ho ma"es the goods in a factory or a production facility -hemanufacturer buys ra# materials from suppliers

The RFID T05

.adio /requency Identification *./I2 continues to evolve as a ma!or technology for trac"ing goods and assets around the #orld ./I2 uses radio #aves to identify thingsautomatically and in real time /or the supply chain and operations it provides increasedlevels of product and asset visibility /or e9ample, it can help hospitals trac" and locatee9pensive equipment more quic"ly to improve patient care .etailers are loo"ing at using

;6 9 P a g e


44/71

the technology to automatically receive shipments, and have greater visibility into themerchandi3e in the bac" rooms and on the store shelves

Eal5+art and the 2epartment of 2efense *2o2, along #ith some other ma!or retailers,no# require their suppliers to begin ./I25tagging pallets and cases that are shipped into

their selected distribution centers and stores -hese mandates are about to impact a largenumber of manufacturers and distributors around the #orld Ehile businesses are loo"ingto use the technology in many scenarios across various industries, the retailer mandatesare the main driving force behind the current interest in the technology

./I2 can provide the visibility needed to prevent out5of5stoc" situations throughout thesupply chain, but particularly in the critical geography bet#een the stores8 loading doc" and its stoc" room -he system #ill be able to identify the location of goods outside of the stoc" room and can help prevent 7lost: goods #hich #ere really !ust misplaced -hetechnology can support promotions management, ensuring product is delivered in atimely manner and moves to the sales floor to meet demand It also can help discourage

diversion of product to stores not included in the promotion

/or retail, the real po#er of this technology results from associating unique identifiers#ith other information of interest from fields in a database that pertains to the item Fust afe# e9amples as per retail application are0

2ate of manufacture -ime spent in transit ocation of distribution centre holding the item )ame of the last person to handle the item

Amount for #hich the item #as sold Payment method used in buying the item =9piration date ast date of service Earranty period

Ehile most of these fields #ill be stored in a computer system that is detached from thetag, some ./I2 tag technologies permit additional information to be #ritten to the tagitself as #ell as to be removed from it

The !0nu201turin5 F-oor

./I2 can help trac" #or"5in5process and provide predictive analytics and an early#arning of pending system failure It also can be used to trac" reusable assets such asrolling cages, pallets, rac"s and ingredient vessels

Distri&ution Centers

;; 9 P a g e


45/71

./I2 can impact both sending and receiving of goods Automating receiving reduces theamount of labor needed to manually chec"5in incoming items as #ell as the time andenergy spent resolving proof of delivery issues ./I2 can also confirm that outgoingshipments are accurate, complete and loaded on the correct truc" Because ./I2 trac"s

the movement of goods&assets #ithin a facility and beyond it also can help combat theftand shrin"age

Shippin5

Eith products in transit, ./I2 can help protect against theft, diversion and tamperingEhen combined #ith environmental sensors to monitor ambient conditions li"etemperature, light, humidity, radiation, shoc" and vibration, the technology can also provide a #arning if environmental parameters are e9ceeded and help pinpoint the

time&place #here the problem occurred

Eith a record of product movement, ./I2 can support e5pedigree record "eeping thatdocuments the movement of products li"e pharmaceuticals through the supply chain,thereby helping authenticate product and identify counterfeit goods 2ocumenting

product movement ma"es it easier to resolve discrepancies bet#een #hat a vendor shipsand #hat a customer receives, thus providing a po#erful deductions management tooland preventing fines for late or incomplete shipments

:en'or3m0n05e' in4entor$

-he improved visibility ./I2 provides into product movement gives vendors theinformation they need to automatically replenish fast5moving items or ta"e steps to boostsales of slo#5moving product

Anim0- tr01;in5

./I2 tags are commonly implanted into household pets so they can be identified if they

are lost ivestoc" also is being tagged to provide the ability to trac" an animal from birthto the consumer8s table -his capability has ta"en on ne# importance due to risingconcerns about mad co# disease or other ailments

Sm0rt she-4es 0n' 10&inets

;


46/71

./I2 opens the door to smart items that can communicate #ith other systems andgenerate alerts to problems /or e9ample, a smart shelf on a sales floor can provide analert #hen it8s time to restoc" or of a potential shoplifting situation if an unusual number of products are removed simultaneously In hospital settings, an ./I25equipped drugcabinet can provide better control of access and inventory and provide alerts #hen

supplies run lo#

“Sm0rt" 0pp-i0n1es

An ./I25equipped micro#ave oven could communicate #ith the pac"age and set itself up to coo"arm the food at optimal settings ./I25enabling a medicine cabinet could provide the patient #ith alerts about #hen to ta"e a medication, calculate #hen it8s timeto order a refill and analy3e #hether a ne# prescription #ill pose an interaction problem#ith e9isting medications

Re'u1e


47/71

Ch0pter .6 resent Stu'$ The

Rese0r1h

O&e1ti4e

-he primary ob!ective of the report is to focus on the e9isting technology in malls >retail shops and to come up #ith the suggestions for the implementation of ./I2technology for better management of inventory and billing services -he pro!ect ob!ectiveis to gain "no#ledge about the current mar"et scenario of ./I2 technology and study thefuture prospects of ./I2 in the retail sector

-he report also aims at devising suggestions as to ho# and #here to implement the ./I2technique and #hat is the associated benefits vis5T5vis the e9isting technology

Rese0r1h !etho'o-o5$

+ar"et .esearch is a set of techniques and principles for a systematically collecting,recording, analy3ing and interpreting data that can aid decision ma"ers #ho are involved#ith mar"eting goods, services and ideas +ar"et .esearch lin"s the customer or the public to the mar"eter through information

.esearch methods refer to those methods #hich the researchers use in performingresearch operations .esearch methodology is a #ay of solving the research problem in asystematic fashion In other #ords, it is a science of studying ho# research is donescientifically -o complete my research in an effective fashion, I have adopted thedescriptive research design

Des1ripti4e Rese0r1h

It includes surveys and fact finding enquires of different "inds Its purpose is to describethe state of affairs as they e9ist at present -he ma!or ob!ective of descriptive research isto describe something K usually mar"et characteristics or functions A descriptiveresearch is conducted to describe the characteristics of relevant groups, such asconsumers, sales people, organi3ations, or mar"et areas, to estimate the percentage of

units in a specified population e9hibiting a certain behavior, to determine the perceptionsof the product characteristics, to determine the degree to #hich mar"eting variables areassociated A descriptive research study must collect data for a definite purpose so thatspecific predictions can be made A descriptive research can only sho# ho# t#o variablesare related or associated #ith each other

;D 9 P a g e


48/71

E=p-or0tor$ Rese0r1h

-he ob!ective of e9ploratory research is to e9plore or search through a problem or situation to provide insights and understanding =9ploratory research is meaningful inany situation in #hich the researcher does not have enough understanding to proceed#ith the research pro!ect, typically there is little prior "no#ledge at the disposal of a

researcher to build upon, too little is "no#n about consumer reaction to mar"et stimuli to permit the dra#ing of sound hypothesis in many specific situations It is used for developing the hypothesis

C0us0- Rese0r1h

Ehen it is necessary to sho# that one variable causes or determines the values of other variables, causal research design is used -o go beyond this inference #e must havereasonable proof that one variable preceded the other and that there #ere no other causalfactors that could have accounted for the relationship

u0ntit0ti4e Rese0r1h

It is based on the measurement of quantity or amount It is applicable to phenomena thatcan be e9pressed in terms of quantity -his type of research places heavy emphasis onusing formali3ed standard questions and predetermined response options inquestionnaires or surveys administered to large number of respondents

u0-it0ti4e Rese0r1h

It is concerned #ith qualitative phenomena ie phenomena relating to or involvingquality or "ind It is this type of research that is used in e9ploratory designs to gain preliminary insights into decision problems and opportunities

Des1ripti4e Rese0r1h is the research method follo#ed in the completion of the pro!ectunderta"en by me

-he follo#ing research methodology #as used for obtaining, classifying, analy3ing andinterpreting the information -he complete pro!ect #or"ed under a systematic plan to bring out the results in the present form

-o achieve the above mentioned ob!ective the methodology that #ill be adopted isanalysis of primary and secondary data0

Eeb 2atabases

Publications

Statistics

.esearch Papers

Guidance from .etail ?onsultants and inputs from the .etail Industry insights

.eferences and inputs from various malls and retail shops

;@ 9 P a g e


49/71

Rese0r1h !etho'o-o5$

A research design is the detailed blueprint used to guide a research study to#ards itsob!ectives It can also be stated as the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance to the research purpose #itheconomy in procedure A research design is a series of advanced decisions ta"en together comprising a master plan or a model for the conduct of research in consonance #ith theresearch ob!ectives It details the procedures necessary for obtaining the informationneeded to structure or solve the mar"eting research problems -he process of designingthis research pro!ect has involved various interrelated and interdependent steps -hechoice of information type, its gathering, analysis and interpretation of the results #eredetermined on the basis of this research design

-he steps involved in the descriptive research #ere01 /ormulating the ob!ective of the study

' 2esigning the methods of data collection

6 Selecting the sample

; ?ollecting the data


50/71

rim0r$ '0t0 #as collected through0

• uestionnaire filled up by the sample *personally administered or sent to them

Primary data collection consists of original information that comes from people andincludes information gathered from surveys, focus groups, independent observations andtest results 2ata gathered by the researcher in the act of conducting research -his iscontrasted to secondary data #hich entails the use of data gathered by someone other thanthe researcher information that is obtained directly from first5hand sources by means of surveys, observation or e9perimentation

S0mp-e Unit B Sie

A sample si3e of 1$ retailers #as ta"en so as to study their feedbac" regarding ./I2technology -he retailers covered #ere from )oida and Gurgaon

S1ope o2 Stu'$

-he scope of study includes those aspects of the study #hich depict ho# far I had gonefor my research In the research design I have made a descriptive study, leaving out onthe options of other studies -he data collection consisted of questionnaires #hich #erefilled by sending them, having face to face interactions #ith the respondents and alsosecondary data #as collected

Errors in the Stu'$

Inter4ie


51/71

-he respondents selected to be intervie#ed #ere not al#ays available and #illing to cooperate also in most cases the respondents #ere found to not have the "no#ledge,opinion, attitudes or facts required additionally uninformed response errors and responsestyles also led to survey error

S0mp-in5 error

I have ta"en a sample si3e of 1$, #hich cannot determine the buying behavior of the total population -he sample has been dra#n from only )ational ?apital .egion

Limit0tions

-he results of this study cannot be generali3ed beyond the conte9t of the retail industry Ialso #ish to emphasi3e that the study deals #ith only identifying and understanding the

current mar"et of ./I2 in retail -he present assignment has a complete and accuratedatabase of respondents allo#ing the evaluation team to randomly sample and dra# non5respondents into the study by calling them to orally complete the survey -he study #aslimited to the geographical region of )oida > Gurgaon


52/71

Ch0pter 6 An0-$sis

-he questionnaire prepared has been attached in the appendi9 for future reference -hequestions have been analysed belo#0

)( Are $ou 0


53/71

From where did you come to know about RFID?

17

2

10

14

7

Magazines

ustomer

!ews"a"er

Internet

#endor

-he graph above sho#s that a ma!or chun" of the sample under study ie 1Dno came to"no# about ./I2 from maga3ines #hile the other sources #ere internet and ne#spaper

n the other hand, not many retailers #ere told about ./I2 by their customers #hichsho#s that the customers are themselves much not a#are about the benefits that can bederived out of this ne# upcoming technology

.( Whi1h te1hno-o5$ 0re $ou usin5 1urrent-$ in $our ret0i- 2orm0t


54/71


55/71

After thorough analysis of the data collected from the primary research, it is visible thatma!ority of the retailers #ere satisfied #ith their e9isting technology #hile close to 6@of the respondents #ere indifferent about the same It is also noticed that 6 retailers #erehighly satisfied #hich reflects the fact that they are very happy #ith their e9istingtechnology n the other hand, it is seen that ' respondents are not happy #ith their current technology #hich leaves scope for them to change over to ne#er technology#hich maybe ./I2

/( Ho< m0n$ 1omputers 0re $ou usin5 1urrent-$ 2or the e=istin5 te1hno-o5$


56/71

-he retailers #ere also as"ed as to ho# many computers they use for servicing thecustomer efficiently #ith the e9isting technology In response, '6 retailers said that theycurrently use % to 1$ computers for servicing the customer requirements #hile nearly 1Dof the respondents need only 6 to < computers for their retail store n an average,ma!ority of the respondents service their customers #ith close to % computers per store-his reflects the amount of money spent on I- for their store

,( Do $ou 1onsi'er RFID te1hno-o5$ to &e &ene2i1i0-


57/71

After the successful completion of primary research, it is found out that (; of therespondents *;Dno consider ./I2 technology to be beneficial -his sho#s that theretailers are a#are about the benefits associated #ith the technology

n the contrary, only three retailers do not consider ./I2 to be beneficial for their retailstore )o# this response varies as per the type of products he&she is selling If the cost of the products is less than or appro9imately same to the cost of the ./ tags, then it is notviable to implement ./I2 because if he&she does, then the cost incurred #ould be toohigh and moreover the customers #ill not be #illing to pay more for the same product-hus the cost of ./ tag and the product are a deciding factor for the implementation of ./I2 technology

( Are there enou5h 4en'ors o2 RFID in In'i0


58/71

-he graph sho#n above reflects the fact that there are not many vendors of ./I2 inIndia '% retailers feel that there should be more ./I2 vendors in the rapidly gro#ing

Indian retail mar"et

-he research sho#s that there are not enough vendors of ./I2 #hich affects the retailer badly as he&she is not in a position to bargain upon the overall implementation cost -hemore the vendors, the more are the options available to the retailers and the better it is for them because they can benefit out of the situation by going in for the best suitable ./ tagfor their retail format and also can get the best cost effective deal

J( Whi1h 1omp0nies 0re $ou 0


59/71

$hich com"anies are you aware

o%% who "ro&ide RFID tags?

'

(

11

1

7

)

12

*iemens

+#++!+

$I,R-

Manhattan

+ssociates

.,

In%osys

I/M

After the analysis of the data collected from primary research, it is noticed that IB+ andEIP. are the most #ell "no#n vendors of ./I2 Ehile +anhattan Associates, anAmerican ?ompany is the least "no#n Brands li"e CP, Siemens and Infosys are not far behind #hen it comes to a#areness from the retailer8s perspective regarding ./I2technology and products

K( Wou-' $ou -i;e to s


60/71

At the end of the questionnaire, the respondents #ho #ere not using ./I2 currently*;6no #ere as"ed as to #ould they li"e to shift over to ./I2 technology ut of the ;6

retailers, 1@ said V)o8 #hich reflects the fact that a good sum of money is required for theimplementation of ./I2 /or some retailers, implementation of ./I2 is not an easy !ob because of the type of retail format #hich they operate -he cost of ./ tags has to be "eptin mind before ma"ing the crucial decision of using ./I2 technology -he benefits areundoubtedly good and highly effective but then not at the cost of profits and margins

RFID 4s( #0r Co'e

%$ 9 P a g e


61/71

+ean#hile, bar codes are more popular than ever -he technology #or"s #ell for collecting data in structured environments, such as #arehouses, and it is li"ely tocontinue for the ne9t five to seven years

Co#ever the companies are beginning to discover business value in places #here they

cannot use bar5coding and this is e9pected to lead to the first #ave of ./I2 adoption Asthe first success stories percolate, broader support #ill emerge across sectors, not !ust inconsumer goods and retail -his #ill become evident in '$$% and '$$D

Advantage ./I2• /e#er errors

• Improved trac" and trace capability

• Greater efficiency

• A better customer interface

• /aster information dissemination to the

customer

./I2s offer many advantages over traditional bar code scanning technology /irst ./I2obviates the need for contact or line5of5sight And, an entire palette of inventory can bescanned at once and quic"ly ./I2 systems can process as many as


62/71


63/71

At thirty to fifty cents per tag *for passive tags cost is a ma!or concern -o be

economically viable, for many consumer product applications the cost #ill have to be brought do#n to about five cents per tag

-he cost of a tag can be bro"en do#n into three ma!or elements0 the silicon chip, thecopper antenna, and the process of !oining the t#o Ehile most attention is focused onreducing the cost of the chip to ten cents or less, use of conductive in"s may drive do#nthe cost of an antenna to a penny or possibly even less Use of such printed antennas#ould also reduce the cost of !oining the antenna to the chip

-he total cost of Eal5+art8s Fune announcement to its top 1$$ suppliers to adopt ./I2 isan estimated J' billion -his includes not only the cost of tags and readers, estimated atJ< to J1$ million per manufacturer, but also system integration, changes to current supplychain applications, and storage system upgrades, #hich may amount to J16 million per

manufacturer

It is #idely accepted that the availability of ./I2 tags at a rate of around < cents apiecefor bul" quantities #ill be the catalyst for large5scale ./I2 adoption Co#ever, it appearsthat in order to implement ./I2 tagging at the item level across the supply chain, thecost of the tag may have to be lo#er than < cents per piece ?onsumer goods are sold atminimum margins, #ith the producers depending upon volume sales to bring in the profits An increase of < cents per unit may be more than #hat they can afford Since it isthe manufacturer #ho pays for the tag, he has to try and negate the additional cost byma"ing ma9imum use of ./I2 in the supply chain

Greater sharing of costs and information is needed for all players to profit from radiofrequency identification *./I2, because the high price of the chips is preventingretailers and manufacturers from using tags on individual goods ./I2 tags #ill need todrop belo# 6p before it could afford to use them on lo#er cost product lines, say industryleaders ./I2 is currently beneficial for retailers loo"ing to cut costs and improve stoc" visibility But as chip prices fall, tagging could become increasingly profitable for manufacturers

At current price levels, its only cost5effective for ./I2 tags to be used to trac" individualitems that cost J1< or more .etailers and suppliers are particularly interested in tagginghigh5priced items that are often lost, stolen or counterfeited, including computer games,2H2s, music ?2s and prescription drugs

-he high costs of ./I2 hard#are, soft#are and services, the immaturity of thetechnology and the lac" of common standards contribute to the reluctance amongcompanies to adopt it -he adoption of ./I2 technology is being spurred by retailer andgovernment mandates, #hich is pushing many end users into using a technology they#ould not other#ise use until it #as more affordable and mature

%6 9 P a g e


64/71

A+. predicts that ./I2 deployments #ill still be largely limited to pilot pro!ects until'$16 rather than full deployments -he firm bases its forecast on the respondents ./I2 budget forecasts through '$$D

A proposed approach to the cost problem of smart tags is a variety of the smart tag "no#n

as the 7smart label: *pictured belo# ne advantage of the thinner smart labels over conventional smart tags is that they can be manufactured in bul" by special printers?urrent costs of these are in the thirty to fifty cent range -hese can be produced in highvolumes, are thin and fle9ible, can be readrite, and can easily be integrated into the barcode infrastructure ?urrent manufacturers of smart labels include Avery 2ennison,+oore, and +=-

A Sm0rt L0&e-

ne technological dra#bac" of ./I2 tags *and labels is that radio #aves cannot

pass through metal, or even #ater, at certain frequencies )oise from other distracting radio signals can also disrupt tag5reader interaction -he four5foot rangeof the passive tag reader #ould also ideally be e9tended

Standardi3ation is another ma!or stumbling bloc" All ma!or vendors currently offer

systems that are proprietary, resulting in many systems that come in a variety of shapes *rod, scre#, and square and si3es *on the order of millimeters to inches

/requencies and protocols are no# sub!ect to intense competition Across

industries, incompatible ./I2 systems e9ist for truc", rail, air traffic control, tollingauthorities8 usage Interoperability is thus a ma!or source of concern

%; 9 P a g e


65/71

An outcry has been raised about privacy issues regarding customer data /or

e9ample, if a consumer product such as a hot dog pac"age retains its tag beyondchec"out, mar"eters could use the tag to signal a "etchup ad to flash on a billboardas a consumer is #al"ing do#n the street Ehile this may sound hi5fi, it istechnologically quite feasible in the near future

Future Dire1tions

%


66/71

-he t#o ma!or issues plaguing the ./I2 industry are price and standardi3ation In tryingto reduce tag costs from


67/71

./I2 is an upcoming technology that #ill change the #ay retailers function and helpthem serve their customers better Eith the advent of this ne# technology, the retailsector #ill surely benefit and the ultimate benefit #ill go to the end5consumer

-he costs for implementing ./I2 are still too high for most mainstream applications, but

they are falling Ehile the costs and ris"s might be too high to deploy in a productionenvironment, the benefits are proving more apparent and many should be conductingresearch pro!ects to begin determining the potential .I

Eith the use of ./I2, benefits li"e reduction in #arehouse and distribution labor costs,reduction in point5of5sale labor costs, reduction in inventory, improvement in forecastingand planning, reduction in theft, reduction in out5of stoc" conditions and improving thecustomer e9perience can be achieved

+aterials handling is the primary efficiency ?hec"out becomes a much faster process as

stac"s of boo"s can be chec"ed out #ith one scan of a reader #ithout opening or handlingthe boo"s -his is a dramatic reduction in the steps required during chec"out /ullyimplemented, the system could do a#ay #ith a chec"out station completely -he patron#al"s past the e9it sensors, the information is read off the smart card right from the patrons poc"et and the items are chec"ed out )o contact #ith staff, no need to interact#ith a station of any "ind

-he system also has the potential to use a smart card to increase services to patronsInformation can be embedded in the card including prepaid dollars or other informationuseful at the chec"out or other library service des"s

If the installation includes the security addition into the tag then the chec"out stations become far more user friendly All items can be chec"ed out using the self chec"out unitsas no electromagnetic desensiti3ing occurs that can damage sensitive audiovisualmaterial Also, the careful placement required by barcode technology is no longer necessary as tag placement is not relevant to the ./I2 reader

Inventory, trac"ing of lost items, shelf reading and all #or" associated #ith chec"ing theshelves becomes much easier using the portable readers Scan a shelf and the reader #illread bac" the missing or out5of5place items either through a report for limited readers or directly off the reader for more advanced versions

?hec" in becomes far more efficient as entire bins of boo"s can be chec"ed in by movingthe bin through a large reader or scanning a truc" of boo"s #ith a portable reader -his process reduces handling of returned material by several steps .epetitive strain in!uriesthat have plagued libraries #ill be reduced as many of the repetitive movements at chec" in and chec"out are reduced If the implementation of ./I2 is integrated #ith anautomatic materials sorting system, even further reductions in in!uries #ill occur

%D 9 P a g e


68/71

2espite the varied benefits that come along #ith ./I2, there are certain dra#bac"s as#ell At thirty to fifty cents per tag *for passive tags cost is a ma!or concern -o beeconomically viable, for many consumer product applications the cost #ill have to be brought do#n to about five cents per tag Standardi3ation is another ma!or stumbling bloc" and the outcry #hich has been raised about privacy issues regarding customer data

cannot be forgotten Such issues can cause a ma!or roadbloc" for the upcomingtechnology but then it is up to the retailer #hether he #ishes to go in for the technologyand derive the benefits out of it Implementing ./I2 is not an easy !ob and therefore theretailer has to ta"e care of all the processes "eeping in mind the future outcomes

Ehen evaluating ./I2 systems, you should loo" for a solution that #ill support the fullrange of ./I2 functionality and not !ust meet the requirements for tagging mandates./I2 technology may be ready for deployment, but it also requires a good deal of ingenuity and support to implement ./I2 is not a science, but an art #hich is due to themany variables that must be managed to ensure adequate tag read rates

After the analysis of the survey it #as concluded that ma!ority of the sample si3e is a#areabout the technology but some are not #illing to shift to ./I2 due to a number of reasons li"e cost implications and comple9ity It #as also noticed that the retailers feelthat there are not enough vendors in India for ./I2 and #hich is one of the primaryreasons for the technology not being absorbed so #ell in the huge retail format 2ue toless vendors and high costs of the ./ tags, many retailers are unable to shift from their e9isting technology ie bar codes

It #as also seen that even though ./I2 has a number of benefits, both for the retailer as#ell as the customer, the bar coding technique is more feasible and appropriate #hen itcomes to cost terms -here is no doubt that the bar coding technique and ./I2 #ill go

hand in hand in the long run because it #ill ta"e long before the Indian retail industryabsorbs ./I2 on a large scale Since bar5coding is ine9pensive and effective for certaintas"s, it is li"ely that ./I2 and bar codes #ill co5e9ist for some time ./I2 is e9pensiveand deploying it is not hassle5free 2espite that, if the prices of tags drop and standardsare agreed upon 5 ./I2 #ill catch on fast

Re2eren1es

1LL 2/ ppt on .etail

'LL http0&##franchisee"com&/ranchiseWAdvicehtm

%@ 9 P a g e

http://www.franchiseek.com/Franchise_Advice.htmhttp://www.franchiseek.com/Franchise_Adv

Date post:	01-Jun-2018
Category:	Documents
Upload:	sami-zama
View:	216 times
Download:	0 times

Study on Rfid Usage in Organized Retail Sector With Special Reference to Malls in Noida and...

Documents