RFID in retail industry - Implications on efficiency and security - Dissertation Example

The third objective of the study was to examine how the security concerns have been addressed by the retailers that have implemented the RFID technology. The study finds that retailers have not been addressing this concern with as much priority as they give to achieving efficiency in the business process. The customers’ privacy is encroached upon leading to security concerns. In addition to the security of the shoppers, the security of the retailers is also at stake if the shoppers walk in with transmitters or readers that can block the radio waves of the retailers.

Secondary sources could not highlight how retailers have been addressing these issues. Overall, the study surmises that efficiencies have been achieved by the retailers to a great extent but it is difficult to quantify the benefits and cost savings. While RFID is here to stay and benefits have been achieved, the security concerns have not been adequately addressed by the retailers or their channel partners. Many have tried to exploit the technology and use it to their benefit. Table of Contents Chapter I Introduction 1.

1 Background 4 1.2 Rationale for research 6 1.3 Research aims and objectives 7 1.4 Organization of the study 7 Chapter II Literature review 2.1 Introduction 9 2.2 RFID technology 9 2.3 Benefits of RFID 11 2.4 Application of RFID 12 2.5 RFID in supply chain 13 2.6 RFID with a consumer-focused approach 15 2.7 RFID in the retail sector 17 2.8 Limitations of the RFID - Efficiency and Privacy 19 2.9 Summary of literature review 20 2.10 Theoretical framework - Theory of Diffusion of Innovation 21 Chapter III Methodology 3.

1 Chapter Overview 23 3.2. The paper tells that the retail industry represents one of the largest industries worldwide. In the US it is the second largest industry in terms of the number of establishments and the number of employees. The food and beverages industry, a part of the retail sector, in the European Union, is the world’s largest with about 3 million employees as of 2005. However, in the last two decades the retail industry has undergone phenomenal changes and a variety of grocery store alternatives can now be found.

These include different formats such as supermarkets, hypermarkets and discount stores. This sector too has been impacted by the forces of globalization and liberalization thereby facing aggressive competition and increasing cost pressures, along with ongoing changes in customer and industry demand. Sudden deterioration in consumer demand and the willingness to purchase have impacted and exerted downward pressure on the retailers to maintain efficiencies. Following the recession the economic growth has been slow which reflects the weak consumer sector.

Other challenges of the industry include the short shelf-life of grocery and other allied products, the need for temperature control and traceability of these goods. The number of stock keeping units (SKUs) has been growing necessitating that retailers keep track of them. Sales have exploded and it has become imperative to capture real-time sales information which enables planning for distribution and stocking of goods in an appropriate manner.