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The Vue on item-level tagging

By Bob Trebilcock, Editor at Large -- Modern Materials Handling, 5/17/2006

While carton- and pallet-tagging initiatives are still the norm with RFID, enterprises are now investigating item-level tagging projects.

"We're seeing interest in a variety of unrelated sectors," says Scot Stelter, director of strategic marketing for Alien Technology. "There's interest from the pharmaceutical industry because of counterfeit drugs and theft, from the jewelry industry and for high-end apparel where you've got a variety of styles, sizes and colors to manage."

In fact, Alien, which provides RFID tags, is developing a line of very small tags for item- level tagging that have been optimized for different materials. Alien has also teamed up with Vue Technology (800-580-5957), a provider of radio frequency networking devices and shelf technology, to create scalable solutions for item-level tagging projects.

One reason for the interest is the improvement in inventory management, which translates to fewer stock outs and fewer lost sales. "We worked with one apparel maker who told us there was a 20% difference between their physical inventory and the RFID count once they started putting tags on their hangers," says Jamie Kress, Vue's director of sales and marketing. "It turned out that RFID was that much more accurate. Plus they could take inventory in an hour rather than several days."

Another contributing factor is that the cost of implementing a solution is also coming down.

While item-level tagging can deliver results, Kress advises companies to look across their inventory to pick the right products for a pilot. "You have to look at all your categories," says Kress. "There are items that are ideal for RFID, like DVDs and shoes. It's not appropriate for candy bars. You have to analyze the business case."

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