Radio frequency identification implementation in the supermarket industry

This paper discusses the implementation of radio frequency identification (RFID) in the supermarket industry. RFID is based on the transmission of radio frequency waves by RFID tags to RFID readers. The RFID tags are attached to products or pallets and can be embedded with a wide variety of information ranging from product characteristics to supplier details. There are two kinds of tags: active and passive. Active tags can send out radio frequency waves by themselves whereas passive tags need an incoming signal, sent by a reader, to generate an outgoing wave. This radio frequency wave contains the information that is embedded in the tag. A reader then picks up the wave and the information is sent to the company's information system1. The Electronic Product Code (EPC)2 is technology standard. The key question of this paper is whether the RFID implementation is able to create or maintain a competitive advantage.