Developing better supply chain management, in which electronic product code (EPC) and radio frequency identification (RFID) play key roles, will improve the automatic identification of goods.
EPC establishes a unique classification of objects on a serialised basis and can be thought of as a logical extension of the international barcode system. However, it also identifies products more precisely, so it is possible, for example, to trace an individual soft drink can and, with the encoded data, even track each previous movement and how long it has been in one place.
One key is the use of RFID tags. These hold electronically encoded data about the specific product or item to which they are affixed. The information is readable by scanner, decoded by a processor and stored in the corresponding database, where it is updated as necessary after each significant event or change of status along the supply chain.
When initially registering, a company will assign a basic EPC code for each item that it handles. A record of this standard will be held in the company's own server and act as part of the 'global address' mechanism.
Although EPC/RFID is gaining popularity, some enterprises are still adopting a wait-and-see attitude to its implementation. Wal-Mart, one of the world's largest retailers, took a big step forward with its EPC pilot in the United States market in 2005.
During its implementation, Wal-Mart expanded the number of EPC-equipped distribution centres and participating stores. This year, Sam's Club, the United States-based bulk discount offshoot of Wal-Mart, started the EPC rollout in Asia, allowing its suppliers to enjoy the benefits of this revolutionary technology.