RFID @ Tesco
Where technology meets service!
By Group 7
Abinav | Apurva | Sagar | Narinder | Sharath | Akshat
This a educational presentation by Students of SPJCM, Tesco logo belongs to Tesco PLC.

Operations in UK
• 1800 out of 2300 stores were in UK
Expanding
• East Europe – Hungary, Warsaw, etc.
• East Asia – Korea, Thailand
• Automation in place
SCM it is…!
Road Ahead

High efficiency
Continuous Replenishment
• From centralized ordering to check-out counter
ordering
• Zero stock out
Low costs
Is RFID Simpler, Better and Cheaper???
SCM Objectives

Radio-frequency identification (RFID) is an Identification method,
relying on storing and remotely retrieving data using devices called
RFID tags or transponders.
Invented in 1948 by Harry Stockman.
Initial application was during World War II-The United Kingdom
used RFID devices to distinguish returning English airplanes from
inbound German ones. RADAR was only able to signal the presence
of a plane, not the kind of plane it was..
Came into commercial use only in 1990s.
RFID-What it is?

Active RFID Passive RFID
Tag Power Internal to tag Energy transferred
Source using RF from
reader
Tag Battery Yes No
Availability of Continuous Only in field of
power reader
Required signal Very Low Very High
strength to Tag
Range Up to 100m Up to 3-5m, usually
less
Multi-tag 1000’s of tags recognized Few hundred
reading – up to 100mph within 3m of
reader
Data Storage Up to 128Kb or read/ 128 bytes of
write with sophisticated read/write
search and access
Active Vs Passive

RFID Barcode
Forging is difficult Forging is possible
Scanner not required. No Scanner needs to see the
need to bring the tag near bar code to read it
the reader
RFID is comparatively fast
Can read multiple tags Can read only one tag at a
time
Relatively expensive as Inexpensive
compared to Bar Codes
(Reader 1000$, Tag 05 -
10 cents a piece)
Can be reusable within Cannot be reused
factory premises
RFID vs Barcode

BARCODE
RFID

The Supply Chain
www.themegallery.com Company Logo

Is it Better – for customers?
• Improve Availability
• Know where it is?
Is it Simpler – for staff?
• One touch replenishment
Is it cheaper – for TESCO?
• Reduced costs
• Reduced waste
• Reduced stocks
Is RFID it?

Jan 2003 …
Gillette
products
• Will technology
work?
June 2003 …
Entertainment UK
(DVDs)
• Active partners
• RFID Tagging in the
packaging
• Information sent to central
system, accessible by both
TESCO and Entertainment UK
Testing Grounds

September 2003 … December 2003 2004
Milton Keynes D/C
From D/C to 2 Tracking from
stores in Tagged at the Tagged at point
supplier to D/C Six suppliers
Peterborough & D/C of production
to stores
St. Neots
Testing Waters

January 2005
• 35 D/C & 1300 stores
• 16000 antennae
• 4000 readers
December 2005
• Extended to other categories of items
• 98 other superstores
September 2006
• Deadline for suppliers to tag RFID
Implemented

Scanning of Trolley
Auto stock out Notification
Further efficient tracking
Road Ahead

THANK YOU !!!
This a educational presentation by Students of SPJCM, Tesco logo belongs to Tesco PLC.
www.themegallery.com Company Logo