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Retailers Plow Ahead With RFID Chips
iwon news ^ | May 20, 06 | BRIAN BERGSTEIN

Posted on 05/21/2006 9:35:29 AM PDT by Nachum

The roots of radio-frequency identification technology stretch at least as far back as World War II, when transponders helped distinguish between Axis and Allied aircraft. Over the years the concept has been greatly miniaturized, landing RFID technology in such settings as animal tags, toll-collection devices, passports, keyless entry systems for cars and wireless credit cards.

But perhaps none of these projects will have as much impact for consumers as the adoption of RFID in the supply chains of huge retail stores.

Mega-retailers led by Wal-Mart Stores Inc. (WMT) have gotten their biggest suppliers to add RFID chips to pallets and cases shipped to stores. Now, rather than having people with bar-code scanners walk around to take inventory, RFID readers in warehouses can automatically tally items on the fly.

RFID is expected to yield substantial savings largely by reducing the frequency of the following scenario: A customer goes to a store for an item, only to find its shelf empty, even though replacement stock lurks somewhere in the back. It's one of the costliest problems in retail.

Simon Langford, Wal-Mart's director of logistics, distribution and replenishment systems, explains that a bar-code scanner can register that certain items have entered a store's back room. But not until one of the items gets scanned at checkout does the store typically get an update. In between, the item might be on a store shelf or still sitting among back-room clutter.

In the more than 500 stores where Wal-Mart has integrated RFID, radio tags give additional insight - they inform employees when supplies enter the storeroom, when they leave it for the sales floor and when their emptied cartons are taken to the trash.

A University of Arkansas study last year determined that these stores saw a 16 percent reduction in the times that products were missing from shelves. But Langford said that figure understated RFID's true power, because the study included popular items that sales staffers already were sure to replenish. When the research examined only items that Wal-Mart sold less than 15 times a day, the out-of-stock reduction was 30 percent.

Wal-Mart hopes to see even greater improvement soon by giving employees handheld RFID scanners that will direct them precisely to cartons of products they need to bring from the storeroom.

Eventually, individual products in Wal-Mart and other stores are expected to get their own RFID tags to give stores even clearer views of their inventory.

"That's really where the supply chain gets most messy," said Kevin Ashton, who helped drive RFID development at the Massachusetts Institute of Technology and now heads marketing for ThingMagic LLC, a maker of RFID readers.

Some high-value items like TVs and pharmaceuticals already have their own tags. But most item-level tagging is a decade away.

First, tag prices must drop below their current 5-to-7 cent range. Work also still needs to be done to master wireless interference issues that can arise in RFID-dense environments. And developers have to assure the public and retailers that data on the tags are secure and not invasive.

"We're seeing the RFID industry get a little bit more mature every day," Ashton said. "We don't view the RFID market as some overnight sensation."


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Front Page News; News/Current Events
KEYWORDS: ahead; chips; ilikeyoursister; moonies; plow; retail; retailers; rfid; slaves; spyingonyou; tinfoilalert; walmart; wearetrackingyou; weknowwhereyouare; weownyoucitizen; weretrackingyou; with; yoursisterishot
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1 posted on 05/21/2006 9:35:31 AM PDT by Nachum
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To: Nachum

If the legislators are not going to ban them, then at least, they should require manufacturers and retailers to inform the customers where the chip is placed with instructions on how to remove or disable it after they leave the store.


2 posted on 05/21/2006 9:48:31 AM PDT by Enterprise (The MSM - Propaganda wing and news censorship division of the Democrat Party.)
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To: Nachum

Any hope for an rfid arrow shaft so that shot deer don't go unfound?


3 posted on 05/21/2006 9:48:39 AM PDT by tomzz
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To: Nachum

I used to be a big technocrat.

I've lately been wondering how foolish it was for anyone to have left the farm life, for any reason at all.


4 posted on 05/21/2006 9:49:36 AM PDT by SteveMcKing
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To: Enterprise

if you don't have a reader it is effectively disabled.


5 posted on 05/21/2006 9:51:45 AM PDT by durasell (!)
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To: SteveMcKing
I used to be a big technocrat. I've lately been wondering how foolish it was for anyone to have left the farm life, for any reason at all.

Thats easy...Try having diabetes without technology.

6 posted on 05/21/2006 9:53:27 AM PDT by Havok (I like meat, guns, and comic books. Am I a bad conservative?)
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To: Havok

Thats easy...Try having diabetes without technology.




You really can't have diabetes for long without technology. Without technology what you mostly have is funerals of diabetics.


7 posted on 05/21/2006 9:56:20 AM PDT by durasell (!)
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To: Havok

I see the sadness, but also the price. It grows every year.


8 posted on 05/21/2006 10:01:51 AM PDT by SteveMcKing
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To: Nachum

In the past couple of years, since Walmart's RFID plans became public, I have been looking for stock opportunities in this field. I haven't found any publicly traded companies that are pure plays. This article mentions ThingMagic LLC, and I went to their website and they talk about "generous stock options" for prospective employees. But I can't find that company listed on any exchange or OTC.


9 posted on 05/21/2006 10:03:43 AM PDT by Stirner
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To: Nachum

Maximizing profits, reducing overhead. Does that necessarily mean lower retail prices? Or higher earnings? Both? Pro'lly 5/3/2/1 -- Exec bennies/inventory expansion/ROI/retail buyers. Naw, scratch retail buyers . In fact, cut ROI in half and raise bennies to 8 and buy more RF chips with the remainder.


10 posted on 05/21/2006 10:08:06 AM PDT by Eastbound
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To: Nachum
A good site that coveres the dangers of these RFID devices is spychips.com
11 posted on 05/21/2006 10:14:40 AM PDT by zeugma (Come to the Dark Side... We have cookies!)
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To: Stirner

Siemens


12 posted on 05/21/2006 10:17:03 AM PDT by durasell (!)
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To: Stirner

They seem to be owned by Tyco Electronics. http://www.rfidsolutionsonline.com/content/news/article.asp?docid=afbb9716-4640-4961-ae4f-b50f0d41243b&VNETCOOKIE=NO


13 posted on 05/21/2006 10:17:59 AM PDT by Racer1
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To: Racer1
On second thought they are privately owned.
14 posted on 05/21/2006 10:20:37 AM PDT by Racer1
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To: SteveMcKing; Nachum
I used to be a big technocrat. I've lately been wondering how foolish it was for anyone to have left the farm life, for any reason at all.

LOL. Reminds me of the story about the rich Wall Street banker (WSB) and the poor Mexican fisherman (PMF). The WSB is on vacation and notices the PMF brings in quite a haul whenever he chooses to go fishing. He begins telling him that if he fished every day, bought a few more boats and hired some help, he could greatly increase his volume. Then, if he moved to the States and began a fish processing plant, he could eventually take it public, get rich & retire.

The PMF asked what would he do then. The WSB replied that he could then move back to his village, kick back and go fishing whenever he felt ...

15 posted on 05/21/2006 10:25:44 AM PDT by lemura
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To: durasell

Exactly my point.


16 posted on 05/21/2006 10:33:05 AM PDT by Havok (I like meat, guns, and comic books. Am I a bad conservative?)
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To: Havok

My point, such as it is, is the fact that nothing stops technology. This is particularly true for a capitalist system where technology often provides an edge in a competitive marketplace.

Stem cell research, to cite one example, had its gubmint funding cut. So what happens? You get three states (CA, MA and NY) dumping a ton of money into the kitty to establish themselves as the biotech capitals of the country.

Yeah, there are casualties and unexpected consequencesin the march into the future, but the march will continue. And it'll continue either here in the U.S. or elsewhere.


17 posted on 05/21/2006 10:38:18 AM PDT by durasell (!)
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To: Racer1

Thanks for the info, but in the article you linked it is not ThingMagic but M/A-COM, Inc. that is mentioned as a business unit of Tyco Electronics.


18 posted on 05/21/2006 10:42:21 AM PDT by Stirner
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To: Enterprise

If you understood how these really work, you would not be concerned.


truly.


19 posted on 05/21/2006 10:48:34 AM PDT by Blueflag (Res ipsa loquitor)
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To: Blueflag

Thank you, good and robotic citizen of the State.


20 posted on 05/21/2006 10:57:27 AM PDT by Enterprise (The MSM - Propaganda wing and news censorship division of the Democrat Party.)
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To: Blueflag

bingo!

But hey..Ive been thinking of marketing an RFID "disabler" to the tinfoil crowd


21 posted on 05/21/2006 11:01:25 AM PDT by mylife (The roar of the masses could be farts)
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To: Stirner
Intermec
22 posted on 05/21/2006 11:03:09 AM PDT by mylife (The roar of the masses could be farts)
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To: Enterprise
Thank you for the ad hominem attack. Now, please explain why RFID chips in pallets and some packages are a risk to the citizenry AND add power to the State.

Also, please explain HOW this passive RFID chips work.

Either reply with substance or go away.

The knowledge your credit card company has about you DWARFs anything that could be gained form an RFID inventory tracking wafer.
23 posted on 05/21/2006 11:16:39 AM PDT by Blueflag (Res ipsa loquitor)
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To: Stirner

Zebra Technologies. They make the printers that print RFID tags. Check out it out at Zebra.com.

IMHO, it would be a good buy now that RFID is moving away from the early adopters into wide spread use.

The stock took a few hits recently as they did not have the kind of growth rate some investors were looking for.

To me it is more of an issue of how long it takes to roll out RFID integration projects.

I have owned the stock for years. It is a great company.

Good luck!


24 posted on 05/21/2006 11:18:41 AM PDT by FranklinsTower
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To: Enterprise

Dude, start here for example.

http://www.rfid.averydennison.com/us/rfid_faq.php


25 posted on 05/21/2006 11:19:02 AM PDT by Blueflag (Res ipsa loquitor)
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To: FranklinsTower

Zebra, got its start in BARCODES which were even more sinister than RFID - they were feared by some as the mark of the Beast. A zebra has stripes, and so do barcodes, thus the old company (which name I forget) re-branded to Zebra Tech.

I think you'll find Zebra is big in BARCODE printers, not RFID wafer or chip technologies.


26 posted on 05/21/2006 11:21:37 AM PDT by Blueflag (Res ipsa loquitor)
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To: Blueflag

I've merely expressed my dislike for them and an opinion. Don't call me dude, and YOU go away.


27 posted on 05/21/2006 11:22:33 AM PDT by Enterprise (The MSM - Propaganda wing and news censorship division of the Democrat Party.)
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To: Enterprise; Blueflag

Dont make me seperate you two! ;-)


28 posted on 05/21/2006 11:25:20 AM PDT by mylife (The roar of the masses could be farts)
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To: Enterprise
If the legislators are not going to ban them, then at least, they should require manufacturers and retailers to inform the customers where the chip is placed with instructions on how to remove or disable it after they leave the store.

Why? They don't transmit. Do you cross of the UPC bars on your cereal packages? Because RFID is just as dangerous as a printed UPC code.

29 posted on 05/21/2006 11:25:54 AM PDT by freedumb2003 (Governor of California, another job Americans won't do.)
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To: Blueflag
Yes they are big in bar codes. Go to Zebra.com and type RFID in the search and see for yourself.

They have been RFID players for years.

It's funny how nobody really seems to complain about bar codes anymore!
30 posted on 05/21/2006 11:29:56 AM PDT by FranklinsTower
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To: Nachum

The next step is in restocking the consumer directly. Imagine an intelligent pantry, that issues restocking orders when things get low.


31 posted on 05/21/2006 11:33:21 AM PDT by Rightwing Conspiratr1
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To: freedumb2003

I think many are under the impession that RFID transmits, and indeed those systems exist for semi trucks to be tracked.
But RFID at retail level is a passive system as you say no more intrusive than barcode but a LOT easier to inventory!

Active RFID would be cost prohibitive on retail items.

Also the entire idea that gubmint is tracking our everymove is silly. Its like the phone records thing.
The gubmint simply doest have the power of the will to track all the mundane details of our daily lives


32 posted on 05/21/2006 11:34:09 AM PDT by mylife (The roar of the masses could be farts)
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To: mylife
The gubmint simply doest have the power of the will to track all the mundane details of our daily lives

My life ALONE would set a big part of the Gummit complete asleep from boredom ;)

33 posted on 05/21/2006 11:36:26 AM PDT by freedumb2003 (Governor of California, another job Americans won't do.)
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To: mylife

THE MARK OF THE BEAST IS ON MY CREAMED CORN!


34 posted on 05/21/2006 11:36:37 AM PDT by durasell (!)
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To: FranklinsTower
It's funny how nobody really seems to complain about bar codes anymore!

Complacency..Thats how they getcha! /sarc

Funny no one gives a toss about posting on the net when it comes to privacy. do a google on you screenname to see what I mean

35 posted on 05/21/2006 11:36:55 AM PDT by mylife (The roar of the masses could be farts)
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To: freedumb2003

perzactly


36 posted on 05/21/2006 11:37:29 AM PDT by mylife (The roar of the masses could be farts)
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To: freedumb2003; Blueflag; mylife

Then we're all in agreement then, that at the time of purchase there should be instructions to the purchaser on how to remove or disable the chip. That's all I'm really asking for. Is that too awful much? Hmmmmmm?


37 posted on 05/21/2006 11:37:49 AM PDT by Enterprise (The MSM - Propaganda wing and news censorship division of the Democrat Party.)
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To: durasell

LOLOLOL


38 posted on 05/21/2006 11:39:17 AM PDT by Extremely Extreme Extremist (Conservatism is moderate, it is the center, it is the middle of the road)
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To: Enterprise

No, since it is benign. An RFID chip DOES nothing.

Like I asked -- do you take a marker and black out UPC codes on your groceries?


39 posted on 05/21/2006 11:40:18 AM PDT by freedumb2003 (Governor of California, another job Americans won't do.)
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To: Enterprise

I'm almost afraid to say anything, but have you ever looked into the tagants?


40 posted on 05/21/2006 11:41:33 AM PDT by durasell (!)
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To: durasell
THE MARK OF THE BEAST IS ON MY CREAMED CORN!

"and I would have gotten away with it too...if it weren't for those meddling kids!"

41 posted on 05/21/2006 11:41:35 AM PDT by mylife (The roar of the masses could be farts)
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To: mylife
>"But hey..Ive been thinking of marketing an RFID "disabler" to the tinfoil crowd"

Is it top of the head shaped, and made of foil?

That's my invention, your evil thought stealing chips have stolen it from me while I was in the shower.

Now to invent a tinfoil showercap!!!!

42 posted on 05/21/2006 11:42:06 AM PDT by rawcatslyentist (I'd rather be carrying a shotgun with Dick, than riding shotgun with a Kennedyl!)
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To: Enterprise

Thats readsonable


43 posted on 05/21/2006 11:42:41 AM PDT by mylife (The roar of the masses could be farts)
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To: freedumb2003
"Like I asked -- do you take a marker and black out UPC codes on your groceries? "

I think the dude does.

44 posted on 05/21/2006 11:42:57 AM PDT by verity (The MSM is comprised of useless eaters)
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To: freedumb2003; durasell

I take it your answer means "no." A consumer should not be allowed to remove or disable an RFID chip. That's all I'm asking for, and you two seem to be resistant to a simple request. Why?


45 posted on 05/21/2006 11:44:34 AM PDT by Enterprise (The MSM - Propaganda wing and news censorship division of the Democrat Party.)
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To: rawcatslyentist

L0L

Honestly I was thinking of getting in on the hysteria.
Ive noted that all people of all backgrounds and education seem to have a fear of RFID


46 posted on 05/21/2006 11:44:36 AM PDT by mylife (The roar of the masses could be farts)
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To: mylife

Why, thank you! So far you seem to be the only one other than I, who thinks it is a reasonable request.


47 posted on 05/21/2006 11:45:49 AM PDT by Enterprise (The MSM - Propaganda wing and news censorship division of the Democrat Party.)
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To: mylife; freedumb2003
"I think many are under the impession that RFID transmits"

The passive devices do transmit. They are powered up by the beam of the reader. The simple ones transmit by backscatter. With the std reader they can be read from several meters.

48 posted on 05/21/2006 11:46:25 AM PDT by spunkets
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To: Nachum
http://www.freerepublic.com/focus/f-news/1635819/posts
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49 posted on 05/21/2006 11:46:43 AM PDT by Calpernia (Breederville.com)
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To: durasell

ugh.......creamed corn.


50 posted on 05/21/2006 11:47:18 AM PDT by moehoward
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