Electronic Product Code Project

4623 Words10 Pages

Electronic Product Code Project

Table of Contents

Executive Overview……………………………………………………………………3

Stage 1: Determination of Scope and Objectives……………………………………....4

Stage 2 – Systems Investigation and Feasibility……………………………………….4

Stage 3 – Systems Analysis…………………………………………………………….7

UPC DFD (Legacy System)…………………………………………………………....9

Stage 4 – System Design……………………………………………………………….9

Stage 5 – Detail System Design……………………………………………………….10

EPC DFD (New System)………………………………………………………………14

Stage 6 – Implementation…………………………………………………………….. 14

Stage 7 – Changeover………………………………………………………………….15

Stage 8 – Evaluation and Maintenance………………………………………………...17

Appendix A – Cost Benefit Analysis Chart……………………………………………19

References…………………………………………………………………...................23

Executive Overview:

As a small grocery chain we are currently struggling to maintain our revenue stream and profitability against the competitive threats of the global warehouse chains (Costco, Wal-Mart, etc). We continue to find ourselves behind the curve in this competitive situation. These larger retailers have been able to use their greater resources and economies of scale to not only beat us on cost but also industry innovation. According to the electronic periodical Baseline, “Several dozen retailers and suppliers, including Unilever, Coca-Cola, Kraft Foods, and Wal-Mart have signed on to the next generation UPC called the Electronic Product Code (EPC)”, (Mullin, 2002). With the implementation of this technology a customer will be able to virtually walk through a store, collect all their groceries, and walk out without ever having to stop for a cashier or checkout procedure. The electronic retail chain Best Buy, which sells electronic devices along with household appliances, implemented this technology in many of its stores and has increased revenue, along with customer satisfaction due to always having proper stock on hand. We believe that this innovation will have a profound effect on our customer base, especially the highly desired, short attention span, and technically astute demographic of the 20-45 year olds. There are many other large retailers looking at this technology for the same reason (increased revenue) and studies show that smaller retailers would be willing to implement this same technology if initial installation costs decreased (2002). Our groc...

... middle of paper ...

...illion USD 0.002 USD

Reduction in Unsaleables 3.0 million USD 0.001 USD

Reduction in Out-of-Stock 4.2 million USD 0.002 USD

Point of Sale Efficiency 7.5 million USD 0.003 USD

Total savings at outlets 46.9 million USD 0.022 USD

Estimated Costs:

Annual Costs: 9.7 million USD

Tag Costs: 0.0 million USD

One-time Costs: 96.6 million USD

Integration Cost: 7.8 million USD

Reader Costs (including installation): 88.7 million USD

It is assumed that all tags costs are carried by your supply chain partners

References

Mullin, Eileen; (September 5, 2002). Electronic Product Code, Baseline, Retrieved February, 17th 2004 from http://www.baselinemag.com

EPC Global Website: http://archive.epcglobalinc.org/aboutthetech.asp

AARFID Incorporated Website: http://www.aarfid.com/middleware.html

RFID News Website: http://www.rfidnews.org/

RFID Journal Website: http://www.rfidjournal.com/article/archive/9?topics=9&imageField2.x=11&imageField2.y=5

RFID Online Source Book: http://www.frontlinemagazine.com/rfidonline/

Open Document