The economic viability of radio frequency identification for lumber retailers

The purpose of this project is to define the importance of radio frequency identification (RFID) for major lumber retailers. This project will emphasize the cost savings and efficiencies that would be gained by transitioning out of the current bar coded method of tracking into more effective RFID technology. The focus will be to analyze the processes associated with selling lumber and wood-related products with emphasis on inventory visibility of product in retail stores and retail lumber yards. This document will show the realized losses by large lumber retailers from traditional bar coding systems versus their potential return on investment from RFID technology. Each necessary process to sell lumber in the retail environment, from receiving product to the point of sale procedure, will be scrutinized to show the optimal potential results with RFID. The results will be divided into three key areas of savings with RFID: the decrease in labour the higher inventory visibility within the retail location and the reduction in inventory shrinkage. Speculative examples will also be discussed to give better understanding of the retail processes and their prospective economic benefits. This project has been devised to help lumber retailers realize the potential of the technology and direct them to pull the demand of implementation from their suppliers and throughout their own supply chains. --P. ii.