SubscribeRadio frequency identification (RFID) technology marks a new first, with its entry into the jewellery sector.
At the end of last year, The Jewellery Store dmcc (TJS), a Dubai-based service provider to jewellery wholesalers and retailers, announced it was offering its clients a solution, based on RFID tags, to identify and track individual articles of jewellery through the supply chain, and up to the point of sale.
Using this system, retailers will be able to quickly and easily carry out inventory control twice a day using desktop scanners. With greater accountability of stock, TJS and its wholesale customers will also be able to offer enhanced finance and more cost effective insurance solutions to their retail partners.
Developing the RFID tag
In 2004, TJS entrusted Swiss-based Sokymat SA, the world's leading supplier of RFID transponders, with developing and supplying a customised RFID product for their needs as service providers to the jewellery industry. It was a challenging project. The main obstacle lay in meeting the technical specifications required of the tag: a tamper evident feature, small dimensions, good reading performance, and ability to withstand all handling and cleaning processes to which jewellery is subjected. The underlying challenge was in meeting the customer's tight time to market needs, caused by the unsuccessful attempts of previous vendors to meet the stringent technical requirements.
The result of these efforts was a patented RFID transponder design. The new 13.56 MHz RFID tag developed by Sokymat has a diameter of just 16mm and a thickness of 2.6mm, and has a specific patent-pending feature for tamper evidence. When the tag is attached to the item it cannot be removed without deactivating it. It is therefore impossible to remove the tag and place it on a different item without leaving electronic or physical evidence of tampering. The development of this tag and the successful real world pilot tests led to a subsequent full-scale roll out, with TJS ordering over one million of these RFID tags.
How the system works
TJS is offering the system in different packages. For the retailer, the solution can be deployed in-store and used purely to track inventory. Jewellery items are tagged with discrete, tamper-evident RFID tags with unique identification numbers that link to the full details of the item. The retailer then only needs to scan the items with a small reader, and the details will be transmitted to the management application, which runs on a standard PC in the retail outlet.
Compared to physically handled stock checks that take hours to complete and can only be performed infrequently, a stock check with TJS' application takes minutes. The system enables the reduction of inventory errors, improved stock visibility and gives the retailer a clearer view of turnover. By automating these processes the retailer can focus on his core business, selling jewellery.
For the complete service, TJS acts as a central hub between the retailer's system and the wholesaler, giving the wholesaler real-time reports of the stock held by each of its retailers. Today, typical jewellery retailers in Dubai source products on an unfixed basis with the contract price only set when the jewellery is sold, creating "paper" exposure to the international price of gold. TJS, with its innovative supply methodology, will eliminate this risk and the need to meet cash margin calls.
The unique tag developed by Sokymat makes it possible for TJS to guarantee traceability and accurate inventory across the supply chain. The greater accountability of stock also enables retail and wholesale jewellers to take advantage of more cost effective insurance solutions.
Jewellery tracking is just the latest example of an application based on the intrinsic capability of RFID to automate processes and simplify inventory control, especially when dealing with leased goods. Other leasing based examples of successful RFID implementations carried out by Sokymat include industrial laundry and beer keg management applications.
RFID technology for all applications
Sokymat is present in all major market segments that express a strong interest in the benefits of RFID technology, namely access control and security, industrial automation and supply chain management, and animal identification. Thanks to more than 15 years of experience in transponder manufacturing technology and its know-how in packaging technology, Sokymat can design and manufacture virtually any type of custom-made transponder suited to the specific operating environment and packaging material requested by the customer - including metal.
Along with its expertise in 125/134.2 kHz and UHF RFID technology, Sokymat boasts the most complete know-how in 13.56 MHz technology and serves fast growing industry segments such as the emerging market for government-issued electronic passports and travel documents.
The group employs more than 600 people worldwide, has both research and development centres and manufacturing plants in Switzerland, Sweden, Germany and Malaysia.
