| Impact of Radio Frequency Identification | | | | the pallet tag, or use the stacking information to |
| TechnologyThe Environment consist of the all | | | | automatically break and repack the pallet.Hewlett |
| elements that are outside the system under | | | | Packard (HP) was an early adopter of RFID |
| consideration, and which it must take as given | | | | technology and has used the technology to gain |
| .The environment also include all the external | | | | supply chain efficiencies. He said that HP began |
| impositions and constraints other than those | | | | RFID testing in 2002 and has been tagging pallets |
| imposed by the ownership.The External | | | | and cases in response to the Wal-Mart mandate. |
| environment cannot be ignored otherwise they will | | | | RFID benefits that have since accrued to HP |
| cause messy in the information System, in soft | | | | include the elimination of manual processes for |
| engineering mode of enquiry it emphasize a | | | | inventory control, decreasing inventory control |
| process of enquiry without forgetting external | | | | time, and realization of downstream benefits in |
| environment factorsThe success of an | | | | areas such as product returns and |
| organisation introducing RFID technology into its | | | | retirement.There are also negative impacts, |
| business depends strongly on a proper analysis of | | | | example the issue of Job cuts. If chain stores |
| the environment it is operating in, a careful | | | | started to invest in this technology to process |
| analysis of the environment should be carried | | | | purchases, sidelining human check-out operators, |
| out.Economic impactsIn the retail Industry and | | | | then those employees may find themselves out |
| manufacturing sector it is difficult to imagine a | | | | of jobs, and this will have a negative impact |
| time when items flowing through a warehouse or | | | | towards economy as many people will be |
| distribution center were not automatically sorted | | | | unemployed.Global impactNow that global |
| using bar code labels. It is possible, however, to | | | | standards are emerging in the design and |
| imagine how that process could be improved with | | | | implementation of RFID, businesses that |
| RFID tags. In this application, RFID tags make a | | | | implement RFID will find their products more |
| good process better (with the economic impact | | | | acceptable globally and supply chain of their |
| depending on how "good" the performance of the | | | | products will expandSocial ImpactsAny new |
| current bar code system is):Beyond pure cost | | | | technology has social consequences. These are |
| reduction, RFID-enabled sorting supports supply | | | | usually seen as side-effects to the actual goals of |
| chain processes that are currently difficult or | | | | the technology, and may not be visible for many |
| impossible with bar code technology. Higher data | | | | years after the deployment of the technology. |
| capacity in RFID tags allows more detailed and | | | | When the social impact of the technology is |
| flexible sorting. Sophisticated customers | | | | recognized late in the life-cycle of the technology, |
| sometimes specify detailed palletizing criteria for | | | | it is difficult and costly to make the changes that |
| each order to facilitate cross-docking at their | | | | will mitigate these negative effects. It is therefore |
| distribution centers. An order encompassing one | | | | preferable to anticipate the social impacts and |
| pallet of facial tissue, another of bathroom tissue, | | | | build safeguards into products early in the |
| and one of paper towels might require | | | | development thus saving money and |
| reconfiguration so that the customer receives | | | | development time.A primary social concern |
| three pallets, each with a mix of products and | | | | regarding the use of RFID technology is that of |
| each destined for a different store. Data on an | | | | privacy. As RFID tags are added to consumer |
| RFID tag could include not only to which outbound | | | | goods or to items that will be associated with |
| dock a pallet of towels should be transported, but | | | | individuals such as identify cards or records, RFID |
| also how it should be stacked before delivery. It is | | | | has the potential to allow the tracking of the |
| even conceivable to embed in a pallet tag the | | | | location and activity of individuals, and the creation |
| destination, contents, and stacking configuration of | | | | of records of this tracking in databases, all without |
| the pallet for use by the customer. If store | | | | the individual's knowledge.The scary part of the |
| conditions change between the time an order is | | | | use of RFID tag is that products bought with an |
| shipped and when it is received, the customer | | | | RFID tag on it could all be traced specifically to |
| could write different destination information into | | | | the buyer just with the help of the tiny chip inside. |