While the market for RFID chips is small now, their potential for improving visibility of inventory on an almost instantaneous basis is of significant value, said Karsten Ottenberg, senior vice president of Philips.
Consumer privacy fears over the tracking of goods tagged with wireless chips could negate any cost savings gained from using the technology in the supply chain, according to a leading industry analyst.
The spokeswoman said: "With the ability to read product details on the RFID tags at different points in the supply chain, the information can be used to ensure that the right goods are delivered to the right store at the right time.
The latest trial of RFID in high street shops - at the German supermarket chain Metro- has met with protests that have seen the retailer backtrack after consumers objected to the tracking tags turning up in their loyalty cards as well as consumer...
Taking goods back to a shop, for example, would be easier; recalling faulty or dangerous goods would be simpler; and distributing pharmaceuticals could be made safer by using RFID to scan for potentially harmful combinations.
There are many reasons to use RFID in the retail sector, including tracking goods to improve supply chain efficiency and increasing the visibility of inventory. High-profile retail supply chain RFID projects currently underway - such as Wal-Mart in...