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Starting from the point of manufacturing to warehousing to distribution and finally to the point of sales (POS), the organised retail business today is essentially driven by an efficient Supply Chain which in turn is dependent on the availability of accurate and reliable data/ information in real time. The Automated Identification and Data Capture (AIDC) Technologies i.e. Barcoding/RFID combined with Mobile Computing and Wireless LAN technologies empowers the retailing business to meet these critical needs of collection of quality data at all the points of activity across the complete supply chain.

In today's demanding business environment, where the competition is increasing and margins are eroding, the merchandisers need Tools and Technologies, which would help them in better customer service, reduce operational costs, minimise shrinkages by maintaining accurate & just-in-time inventories.

Bar Coding

Bar coding is a proven technology for automated data collection needs of the business. In layman terms, “a barcode actually contains any given alpha numeric information encoded in the form of Bars and Spaces using international symbologies which are like language of the barcode.” On retail products, the barcode normally contains the product ID (e.g. item code, product code etc.) which is required to be entered into the computer system to update the data at the time of billing, receiving or dispatch. With the barcode in place, the data is fed into the system automatically by scanning the barcode using a bar code scanner instead of punching the same through a keyboard.

Starting at Point of Sales

The fast checkout and reduced queues attracts more customers and ensures that customer visit the store again and again. The Bar Code scanners at point of sales help in the elimination of queues with fast checkout by automating the data entry into system. The barcode scanner is basically a device which plugs into a computer system just like another keyboard and feed the barcode data into a computer. The benefit is that the data fed is nearly 100 per cent accurate and the whole Item code is scanned in a fraction of second. The scanners come in lots of varieties to meet varied needs of retailers. From handheld to hand-free, 1D Single Line or Omni-directional, 2D, corded and cordless, the scanners are available for almost all business needs. Hand held barcode Scanners, which are sometimes also called "barcode gun", can be a Laser or CCD (Charged Couple Device) scanner. Hands Free Scanners are normally omni-directional scanners and are essentially laser scanners. These scanners are mounted either on the table top or below the table glass to allow the user to scan the barcode from any direction for faster operations.

In addition to Bar Code Scanners, the other barcode hardware for POS includes thermal / thermal transfer printers and Portable Data Terminals (PDT). These PDTs, with high memory and with latest Windows-based or Palm-based Operating Systems for complex mobile computing applications, are also called Mobile Computers.

The printer is used to generate on-demand bar code labels (in case the items are not pre-barcoded) for received goods. Unlike normal document printers, Bar Code Printers utilise rolls of labels (die-cut, fanfold etc.) to generate the labels on adhesive labels. These printers include the logic to generate the barcode for any given data which would be read by using barcode scanner. The printers can connect to any software and enable the barcode printing for items directly from the software application.

The Direct Thermal printers utilise thermal paper labels to generate the item labels. Generally, they are used in a situation where the product shelf life is very small. Thermal Transfer Printers use Thermal Transfer ribbon along with Label material to print the barcode labels. The ink from ribbon is transferred onto the label, which is suitable for long shelf life items. Mostly the thermal transfer printers are used in retail, as the product is kept in open environment, where thermal labels could not sustain the environmental conditions and would not be readable after some time. Thermal labels fit into mobile Point of Sales applications, where the thermal slip is printed on thermal paper using mobile printers (just like a credit card receipt).

Apart from printing the barcodes through existing software, the standalone Barcode Printing Software allows label printing without touching the existing software application. Typically, most retail stores use POS counters, which do not allow barcode printing. In such situations, barcode printing software allows the label designing and printing at the stores from existing PC. Usually these softwares can print barcodes on all type of printers including Laser, Inkjet etc., apart from Bar Code Printers.

In the Store

Barcodes solutions play an important role in utilising customised in-store marketing, increasing up-selling and cross-selling opportunities, quickly locating merchandise, easily monitoring inventory and checking prices. The state-of-the art solutions based on barcode technology enables retailers to improve the customer's experience at the primary point of decision – the selling floor.

The Portable Data Terminals (PDT) allow the retailers to take the inventory status by scanning the items barcodes without need of counting them.

A PDT is basically a small computer, with a display screen, barcode scanner, rechargeable battery, and optional keyboard. It has its own memory, where it can store the collected data and display the summary to user. Generally, Batch PDT suits most retail requirements, but a RF model could also be used to perform on-line inventory counts. Whereas the batch version stores data in memory and then uploads the same to PC through a communication system, the RF version updates the data on the server in on-line mode through 802.11b wireless network. PDT is a programmable device and it can be programmed to meet the business needs.

Apart from inventory status, PDTs automate the receiving goods by scanning the receipt material data and then uploading the same onto a PC-based application.

With higher-end PDTs, the retailer can offer the customers, mobile POS facilities. The RF-based PDT is used with a mobile receipt printer, which generates on-line bills for purchases made by the customer on the spot and at the same time, this data gets updated in the central server through wireless network and customer can make payments on cash counter against these receipts.

In addition, the Portable Shopping System (PSS) empowers the customer to do personal shopping with online PSS units in the store. PSS is similar to PDT, but it works on wireless network and allows the customers to view the information about the items as well as allow them to do the billing for themselves. Equipped with lightweight, ergonomic handheld devices, shoppers have at hand valuable product data, including description, price, and location information, as well as a running total of their purchases.

In higher-end retail stores, retailers can deploy Kiosks for instant access to the latest prices, product information. Additionally, these kiosks can do the advertising and promotional activities as well as guided selling of goods. A kiosk can also display a 'store map' for customers, based on choice of items and guide them accordingly.

Distribution Center

The combination of barcode and Mobile Computing technologies allows the streamlining of distribution centre activities.

The work force at a distribution centre is empowered with high performance, rugged and easy-to-use mobile computers. The mobile computer is a true replacement for a desktop PC from the perspective of the person who is involved in numerous receipts and dispatches in a large distribution centre and saves him from tedious data entry and errors thus eliminating the risk of wrong stock information and wrong dispatches. The Mobile Computer is basically a small but powerful hand-held computer with Palm or Windows CE/Pocket PC operating system. Mobile computers have high processing speed (200/400 MHz or more) with more memory to store more data. They have large display (mostly touch screen enabled) for fast and easy operations. Mobile computers come with integrated barcode scanner to further ease and automate the data entry of items.

The distribution centre staff would use these mobile computers to book the orders at the retail store. This data is retained in the mobile computers' memory and at the end of the day, its uploaded to the distribution centre PC, from where the invoice printing and deliveries are initiated immediately.

The mobile computer is loaded with Item master and retail outlet master from the distribution centre PC. Depending upon the business requirements, very complex requirements could also be handled on these computers, which includes, promotional schemes, merchandising, average-based selling, retail outlet inventory, outlet history, salesmen targets and achievements.

The computers can also be used to capture the competition details, market trends, surveys etc. All this data, when collected, helps the distributions centres in planning their routes, marketing strategies, product position, sales targets etc.

Also, salesmen benefit in terms of time they save in punching the same information at the distribution centre as it is already available in digital format from the point of activity. The reduced burden of data entry lets the salesmen focus on sales rather than on manual work they would have otherwise done in noting down the orders.

Manufacturer to Distribution Centre

The barcode technology helps the retail products manufacturer (FMCG companies) to automate their process from manufacturing to distribution centre (DC). At the manufacturing floor, the Fixed mount scanner integrated with conveyor system helps in sorting the manufactured items based on their packing and other parameters. The fixed mount scanner is basically a high performance scanner, which can operate on a 24x7x365 duty cycle.

The scanner reads the data of moving items on conveyor and send this data to PLC's, which can then make decisions to divert the items to relevant conveyor for automated sorting of items.

The use of 802.11 wireless networks with barcode technology, automate the process of material shipments from plant to warehouse. Wireless network is basically the extension of existing wired network into the areas from where the data is to be entered into the system. Typically, this is achieved by installing the Access Points in the area required to be covered. Depending upon the size and other factors of the area of operations, the number of access points is decided by conducting site survey of the facility. Once the access points are in place, the users can log on to the server through RF-enabled PDT's and start the physical activity of shipment/despatch etc. The data is fed into the RF-based PDTs either by scanning the carton barcode or by entering through a keyboard/ touch-screen. The wireless networks offer the maximum efficiency by enabling the users to interact with system directly from the point of activity.

The RF solution allows the users to pack the material at plan in cartons based on pre-defined packing standards and then generate labels for carton assigning them unique IDs. The total shipment data then can be printed in the form of a 2D barcode. The 2D barcode can contain the contents of entire shipment as a single barcode, which could be read at the DC with the help of a 2D barcode scanner. The entire shipment data is entered into the computer on the scan of just a single barcode.

At company warehouses, the RF-enabled warehousing allows faster transactions as well as implementation of FMFO (First Manufactured First Out). The RF systems can be integrated to existing warehouse solutions/ERPs already in place. The inventory status for receipt from plant or despatch to DC/ Distributor is updated in the system in real-time mode. RF-based systems help in efficient warehouse management, reduced warehousing costs, reduced shrinkage, improved customer service and higher availability of product in the market.

RFID in Retail

Radio Frequency IDentification or RFID is also AIDC technology, which uses Radio waves to read the data from products or pallets or any other object. Unlike barcodes, where the person has to go to the item to read it, RFID-enabled items transmit the item code automatically when they detect Reader signal. The reader is just like barcode scanner, which has a Radio module that transmits radio signals to read the data from RFID tags.

Compared to bar code technology, RFID technology has its own advantages as well as disadvantages. Whereas bar-coding has reached some standards, RFID needs to stabilise on standards as there are still lots of issues related with Radio Frequency and interoperability between vendors. Also, unlike barcode scanners, RFID readers read the items in the area covered in its signal. RFID readers lack the point-and-read feature, which is very important in POS and retail store activities.

With present technology features and due to high costs involved in RFID technology, it fits into carton as well as pallet level tracking of items instead of single item level tracking. While barcode still remains on item level, the RFID tags alongwith barcode are being put into use for Pallet and Carton level to track shipments, receive the items in the stores and their dispatches.

Connectivity of Barcode Solutions

Barcode solutions can be integrated to any application software to enable the printing and scanning of barcodes for various retail activities. Most of the industry standard ERP (SAP etc.) solutions available for retail already support connectivity to barcode equipment.

Awareness in Indian Retail

With the size of organised retailing growing, the barcoding technology has become completely indispensable, especially at the POS applications due to its inherent benefits and cost effectiveness. Barcoding coupled with Mobile computing and WLAN technologies is also gaining ground at the back door applications like inventory and warehousing operations. Major international players in the barcoding technology like Symbol, Zebra, Intermec have targetted India as a very focused market. These companies have been offering special pricing for the Indian market to promote the technology and to make the products affordable for even medium scale operations and thus opening up the large volumes. Reduction in import duties has further helped in increasing the popularity of these technologies. This technology will be further boosted if the Govt decides to open Retail for FDI, since MNCs are already using these technologies abroad very extensively across the complete supply chain.