Pacific Cycle Adopts Inventory Control System

MADISON, US (Oct 27) - Pacific Cycle is the first bicycle company to adopt radio frequency identification (RFID) technology into its systems for inventory control. Wal-Mart's insistence on RFID capabilities started the discussion at Pacific Cycle. Pacific Cycle has shifted down the supply chain; from manufacturing bicycles, to being a distribution, product design and marketing company that leaves the actual manufacturing to others. In that kind of operation, efficiencies in managing the flow of product have a huge impact on business performance. RFID basically is a radio-beacon that can contain far more information than a simple bar-code. Also, the tag can be read from a distance, without actually contact to the item tagged. RFID was originally invented during WWII, but took a long time to find any civilian use. Since the tag can be ‘read’ from a distance, there is a privacy issue: a bicycle wearing a RFID tag can be traced to the owner’s home. To avoid that, Pacific will tag the boxes, not the bikes – as these get discarded pretty soon after purchase. (MH)