Using RFID Tags to Prevent Theft
RFID could dramatically reduce theft by employees and by shoplifters. We explain what the challenges are and show you how to combine RFID, bar codes and GPS to keep an eye on your products at all times.
By Bob Violino
July 14, 2003 - Theft of goods cost global manufacturers and retailers more than $50 billion annually, and it’s a significant component of product shrink. While RFID is expected to help combat theft by shoplifters and employees, industry observers and practitioners believe that the technology will be most valuable as a means of preventing or reducing theft as products move through the supply chain.
"The biggest probable benefit is not so much in the stores but bringing accountability into the supply chain," says Jim Crawford, vice president at Retail Forward, a retail consulting company in Columbus, Ohio. "The biggest problem is not some kid taking a package off the shelf, but a diversion of huge quantities in the chain. If you go on eBay, you’ll see people selling Gillette Mach3 razor blades in large quantities. Those are stolen from throughout the chain."
By using RFID to track the whereabouts of items, "you can actually backtrack from any goods you find on the gray market, and see who’s accountable," says Crawford. "It gives companies a whole new level of visibility they’ve never had." For example, when an individual item with an RFID tag shows up on the gray market, a manufacturer could learn where that item was originally produced, which warehouse or retail outlet it was shipped to, and which truck it was shipped on. This would greatly increase the chances of finding out how it got on the gray market.
July 14, 2003 - Theft of goods cost global manufacturers and retailers more than $50 billion annually, and it’s a significant component of product shrink. While RFID is expected to help combat theft by shoplifters and employees, industry observers and practitioners believe that the technology will be most valuable as a means of preventing or reducing theft as products move through the supply chain.
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| Peter Abell |
"The biggest probable benefit is not so much in the stores but bringing accountability into the supply chain," says Jim Crawford, vice president at Retail Forward, a retail consulting company in Columbus, Ohio. "The biggest problem is not some kid taking a package off the shelf, but a diversion of huge quantities in the chain. If you go on eBay, you’ll see people selling Gillette Mach3 razor blades in large quantities. Those are stolen from throughout the chain."
By using RFID to track the whereabouts of items, "you can actually backtrack from any goods you find on the gray market, and see who’s accountable," says Crawford. "It gives companies a whole new level of visibility they’ve never had." For example, when an individual item with an RFID tag shows up on the gray market, a manufacturer could learn where that item was originally produced, which warehouse or retail outlet it was shipped to, and which truck it was shipped on. This would greatly increase the chances of finding out how it got on the gray market.
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