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There is a large expenditure associated with installing hardware and software that is compatible with the new system, which if not installed is going to increase the company's costs and incur large overheads. The other issues include user-friendliness of the new system, which will require trained expert staff and hence this system cannot be adopted immediately. These were some of the issues that needed to be taken into account before the final decision about RFID system is taken.
The system is useful in inventory management and efficiency in logistics and operations. The company can use it to accurately forecast the product's movement and to make sure that it always has enough inventories to meet the consumers' demand and to avoid losses. RFID can also be handful in efficient shop-floor activities such as price updates, price checkout and recording of payments. This system also reduces the chances of human errors. Similarly, the new system can also help in the customer relationship management and can help the company to modify their sales tactics to increase the customer base. It can be useful in knowing the customer's buying preference and can help the company to enhance the customers' buying experience. ...Show more

Summary

There are two facets to the question. The first one relates to the privacy issue while the other one is about the data collection and usage. The first issue can be resolved by constructing trust between the company and the consumers by telling them the ethical standards that will prohibit the use of consumers' personal information in a wrong way…
Author : elizabethwucker
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