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RFID cracks China for House of Fraser
International supply chain management gets a helping of chips

By Jo Best

Published: Friday 20 February 2004

The latest big name high street chain has announced it's trialling tracking-technology RFID in its supply chain - House of Fraser revealed yesterday that it will be partnering with Exel to run an international pilot of the tags.

The radio-tracking technology will be attached to individual items of clothing in House of Fraser factories in China and used to monitor how the items are progressing along the supply chain.

When the clothes reach House of Fraser's national distribution centre in Milton Keynes, the companies will look into any potential cost savings made through the use of RFID in its supply chain management.

Exel has said that it is now looking into writing software for the tracking tags. The House of Fraser's supply chain director, Colin Porter, said in a statement that he hoped that RFID would boost the chain's efficiency, product availability and cost-effectiveness.

While everyone from supermarkets to taxis have been rushing to adopt the technology, analysts have sounded a note of caution. A report from analyst house the Meta Group said last week that any businesses looking into using RFID should take into account that the technology can significantly alter the structure of a company and could even harm its efficiency if not properly deployed.