Newsletter - June 2011

RFID is often compared to barcode because they are both data-collection technologies. However barcode was inherently designed for the checkout counter as part of the POS system. It was never designed for fast inventory counting where every piece is unique. Because it is unable to identify more than a single item at once, inventory counts are done too infrequently. As a result, POS systems are not given sufficient data they need to provide accurate inventory reports.

Here are three reasons why RFID should be combined with your barcode:

• Scan multiple tags simultaneously: an RFID scanner can read several tags within seconds, a barcode reader can only scan one barcode at a time consuming more time than manual counting in many cases.
• No line of sight is needed: an RFID scanner does not need line of sight to scan an item, so a tag can be hiding within a ring tray or under a pendant pad and still be read, whereas with barcode each tag must be visible to the reader.
• Supports item-level tagging: the linear barcode (most commonly used in the jewelry industry) does not have sufficient storage to identify an item uniquely. Whereas RFID supports item-levelh

Like barcode, RFID technology is a data-collection technology. The difference is that it enables you to count your diamonds and jewelry a LOT faster. Although this has been proven to save hundreds of labor-hours in the jewelry environment (see savings calculator), to understand what return on investment RFID technology can bring you, you must first define the applications of the technology in your own environment. Applications are only limited to one's imagination.

Here are six of the most common applications that have already been deployed successfully in the jewelry industry:

• Inventory & store performance: placing a scanner between the salesperson and the customer enables the jeweler to learn how many times an item was shown before it was sold and which salesperson has the highest show-to-sale ratio.
• Anti-tampering: attaching a tamper-evident RFID tag on each item creates an electronic seal. This enables the jeweler to detect any breach of this seal, which prompts an investigation of the tampering, disappearance or misplacement of an item on the next scan (can be as early as the end of each shift).
• Eliminate annual audits: the ability to scan full inventory in minutes enables much more frequent stock verifications, which leads to on-demand reconciliation. This has been proven to eliminate annual audits and the associated store closure and reconciliation efforts. Also, frequent scanning defines which inventory is dormant and which is active, enabling inventory optimization.
• High-speed check-out: jewelers can check-out hundreds of items within seconds, whether it is for a representative who wants to take product on the road, exchange merchandise or a retailer who selects hundreds of items from your warehouse or tradeshow.
• Job status: rigging each stage of production or repair with an RFID scanner enables the jeweler to understand bottlenecks and accurately report the estimated time of delivery to their client.
• Diamond stock takes: placing RFID tags on diamond envelopes allows jewelers to scan entire diamond boxes in seconds, as fast as five seconds for every hundred. Jewelers find this very useful for daily stock takes and transfer from one location to another within the store, or from one site to another.