Enter Big Box Retailers with Confidence
If you’re looking to get your product in big box stores, you’ve likely heard the buzz around RFID tagging. With strict specifications in place, choosing the wrong RFID tagging system could have consequences for your business. Understanding exactly which RFID tags you need (and why) can save you time, money, and headaches. In this guide, we’ll break down the RFID tag types major retailers require.
What is an RFID Tag?
An RFID tag is a small electronic device that stores information and communicates with other devices using electromagnetic frequencies. Essentially, these tags make it easy to automatically identify and track objects.
An RFID system consists of a tag, a reader, and an integrated IT system that collects and manages data. The tag contains a chip and antenna, which is picked up by the reader when it passes nearby.
There are three RFID tag types you need to be aware of: passive, active, and UHF.
- Passive RFID tags are a common option and are the most cost-effective choice. There is no internal power source in these tags. Rather, they rely on reader signals to operate.
- Active RFID tags are battery-powered for longer read ranges. They usually come at a higher cost and are used for high-value asset tracking.
- UHF RFID tags are preferred for supply chain and inventory management due to longer read ranges.
An RFID system reduces reliance on manual barcode scanning for inventory needs, which can produce inaccurate results. In fact, RFID tags have been proven to improve inventory accuracy to 95% and reduce out-of-stocks by 50%. They’re also instrumental in theft prevention. As a result, many big box retailers are requiring suppliers to add them to their products.
What RFID Tags Do Big Box Retailers Require?
RFID tagging is not a new concept. The technology was first used during WWII in a military capacity, helping to identify enemy aircraft. It wasn’t until 1999 that the Uniform Code Council, EAN International, Procter & Gamble, and Gillette invested in this technology to bring it to retail.
In 2003, Walmart first adopted RFID technology, requiring it for its top 100 suppliers. In recent years, the company has expanded its requirements even further. According to Walmart’s Supply Chain Standards Guide, RFID tagging is now required for apparel, stationery, media and gaming, cameras and supplies, toys, sporting goods, automotive, hardware, paint, kitchen and dining, outdoor living, home decor, crafts, bath and shower, books, bedding, furniture and luggage, electronics, closet and organization, and wireless products.
Walmart’s Supply Chain Standards Guide, also notes that the retailer “…will be following all industry standards set forth by GS1 RFID serialized encoding standard, GS1 RFID tag placement standards, and Auburn University RFID Lab ARC inlay standards.”
This means all products using RFID technology in their supply chain must follow established industry standards. Each item must have a unique RFID code based on GS1’s serialization rules, tags must be placed according to GS1’s placement guidelines, and the RFID tags must meet performance standards tested by Auburn University’s ARC program.
Target has a similar philosophy and rolled out RFID technology in a small number of stores towards the end of 2015. Now, retailers like Nordstrom, Macy’s, Lowe’s, and Dick’s Sporting Goods all rely on this technology. If you’re looking to get your products into a retail giant, chances are you’ll need RFID tags you can rely on.
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