Wireless technology reshapes retailers

Network World - From Prada's Manhattan digs to a Gap store in Atlanta, retailers are trying out new wireless technology that experts say will help to improve inventory accuracy and to fight fraud.
Radio frequency identification (RFID) technology uses radio waves to transfer data between a reader device and an item, such as clothing or a shipping container. The technology is used in many applications, from luggage tagging at airports to highway toll collections.
Exxon Mobil Corp. uses it in its Speedpass payment system. Customers wave a small transponder in front of a sensor on a gas pump, debiting their account. Low-frequency RFID applications range from 3 KHz to 300 KHz; Speedpass operates at 134 KHz. High-frequency RFID systems operate between 3 MHz and 30 MHz, with many at 13.56 MHz, a frequency reserved for low-power industrial applications.
Today, retailers are looking to use RFID to keep tabs on their inventory -- to find out what products are on store shelves, what's available in the storeroom and what's en route from the distribution center or suppliers.
RFID is a descendent of wireless technology used during World War II when the British mounted transponders to their aircraft so they could tell via radar if an approaching plane was one of their own.
In many retail scenarios, an RFID system consists of an antenna and transceiver -- which often are contained in a single reader device -- and a transponder. The reader can vary in format from a simple handheld scanner to a stationary tunnel-like device that scans boxes as they pass along a conveyer belt. The reader transmits a signal over radio frequency waves to activate a transponder embedded in an item tag. When activated, the tag sends data back to the reader.
For retailers, RFID tags are an alternative to bar codes. The tags contain miniature chips that store information about the item to which they are affixed -- bluejeans or a T-shirt, for example.
Unlike bar codes, RFID tags don't require a reader to come in direct contact with an item, nor do they require a line of sight between reader and tag. Plus, multiple transponders can be read simultaneously. This means warehouse staff can inventory the contents of a sealed pallet with a single scan, and storeroom staff can tell what's inside a sealed carton without removing each item.
RFID tags also hold more information than a standard Uniform Product Code (UPC) identifier. Whereas a UPC bar code identifies a particular manufacturer's product, such as a style of shoes, an RFID