Emart and Hanaro Mart, Korea’s two largest retailers, will introduce the RFID system to their stores. There has been no case in Korea to introduce the RFID based distribution system for retailers, connecting the overall system from manufacturers to retail stores through warehouses. Therefore, the market is eyeing on the result of the both retail giants. On May 1, market observers said that Emart will convert the barcode and document based logistic system in its warehouse in Yeoju to the RFID and digital document based system. Hanaro Mart will also do the same in its logistic center in Pyongtaek. Emart will sign agreements with Samsung Electronics, LG Electronics, Fuji Distributor and Chung Young Digital to begin the RFID based logistic system from small digital devices like PMPs, navigation systems and MP3 players. RFID tags will be attached to these devices when makers shipped them to Emart’s warehouse in Yeoju. Then, Emart will automatically manage and control using the RFID tags on the devices. The stores will check the inventory using the RFID readers and manage the inventory and the backrooms. Emart’s System and Planning Team Chief Joo Yong-no said, “Small digital devices are various and have difference in models. Therefore, it is hard for assistants to give the detail of products to consumers. The RFID system will help manage the inventory on the real-time basis according to the sales data. Also, the additional activities to check the inventory will be reduced, improving the efficiency of works.” Emart plans to increase the number of suppliers attaching RFID tags from 4 in the first phase to 8 in the second phase. Also, the stores where the RFID system is available will be expanded from 3 to 5. Hanaro Mart is also planning to expand the technology to operate warehouse to the RFID system as it opens a new warehouse in Pyongtaek in January, next year. It already agreed with CJ, Yuhan Kimberly and Taeyang Industrial to attach RFID tags to their manufactured products. The RFID tags will be attached to boxes, helping Hanaro Mart manage inventory in warehouse and backrooms of stores. Hanaro Mart already decided to use RFID tags to products in a box costing more than KRW 10,000. Hanaro Mart’s Deputy Manager Lee Sang-jo said, “We spared KRW 400 million for the budget. However, as we added tags and new system, the cost for the system is predicted to grow. Many companies are delaying to introduce the RFID system since its efficiency has not been proved well, it costs quite much financial burden and its ROI has not been established.”
http://english.etnews.co.kr/news/detail.html?id=200805020005
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Always net IT systems looks & sounds good but we should be careful as its cost is not small amount money. RFID system is also effeient for managing inventory in retail shop but workers might pay little attention for its products as they might believe IT do everything. I think always people should be in the center of IT to manage and control it.
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