Just as the UPC code has transformed retail operations around the globe over the past twenty years by increasing productivity and efficiency within the supply chain, the ePC (electronic product code) could take supply chain dynamics to the next level. That is the vision of a team of scientists at the MIT Auto-ID Center in Cambridge, Massachusetts. A consortium of companies (including WalMart, Proctor and Gamble, and Sun) is currently supporting research into this new technology at the MIT Auto-ID Center in Cambridge Massachusetts and Cambridge, England. In the 2001-4 eRetail Report, the first of several on the development of the ePC, the potential impact of the ePC on retail operations is considered. What Is The ePC The existing UPC code allows retailers to track products at the SKU (stock keeping unit) level by providing every product with a unique identifier. The UPC (and its International cousins, the EAN and JAN) is made up of two key components: a number which identifies the manufacturer of the product, and a number which identifies the product belonging to that manufacturer. Each time a new product is created, or an existing product is modified in any way (including changes in packaging), a new UPC code is assigned to the product. Since each product may go though several minor design/packaging changes over its life, a single product may end-up with several UPC codes that identify it to a retailer, even though the retailer may consider the product as a single SKU. The ePC code is a new product numbering standard that goes way beyond identifying products. The ePC assigns a unique number to every single item that rolls off a manufacturing line! (e.g. Every single bottle of soda would have its own unique ePC number). The ePC will allow every company in the supply chain, including retailers, to track products at the individual item level. This means every single item on a shelf could be traced back to when it was made and when it is sold (or goes missing!). However, the structure of the ePC does not necessitate every retailer track items at this level. The ePC has been designed to allow it to replace the UPC and allow tracking at the SKU level if desired. Because of the enormous quantity of unique numbers required to track at the item level, the ePC utilizes a “96-bit numbering scheme”. In laymen’s terms, this means is it is capable of uniquely numbering every item produced on the planet well into the future! The ePC number is designed to be embedded within an electronic tag that can be applied to each item for a very low cost. One way to think of the ePC is to imagine a UPC that is appended with a unique serial number and stored electronically on every item. The ePC tag can be read by radio frequency scanners when brought into range of a tag reader. The technology to scan the codes may eventually be built into warehouse bin locations and store shelves, providing the ability to locate and track items throughout the supply chain in real-time. ePC diagram....click here Read our full analysis in the 2001-4 mini report FREE NEWSLETTER, click here | 