What Is an Electronic Product Code (EPC)?

For retail applications, Electronic Product Code (EPC) generally refers to merchandise tags using Radio Frequency Identification (RFID) to uniquely identify individual items. Each EPC typically contains both a Universal Product Code (UPC) or Stock Keeping Unit (SKU) and a serial number. The UPC or SKU identifies the manufacturer and product type. The serial number identifies that one unique physical object in the Supply Chain. The EPC can identify pallets, cases or individual units.

EPC was developed by researchers at the Massachusetts Institute of Technology as a tool to help businesses identify and track individual items throughout the Supply Chain in real time. EPCglobal Inc., a “not-for-profit” organization made up of retail, manufacturing and technology leaders, governs the standards for EPC implementation. Several major retailers are currently piloting use of EPC technology with apparel, consumer electronics and other goods.

EPC is seen as the next step in the evolution of Barcode technology. Where barcodes require an optical scanner to read the printed symbol that represents the manufacturer and product type, the RFID tag containing the EPC uses a silicon chip and an antenna to transmit this information by radio waves when prompted by the reader. This eliminates the need to physically touch or scan individual items, saving labor cost. It also, in theory, removes inaccuracies caused by human error.

How can Electronic Product Codes help Retailers?

As mentioned above, EPC technology improves efficiency for businesses by eliminating unnecessary labor costs and improving supply chain visibility and accuracy. This allows retailers to track and reorder inventory more accurately, reducing sales lost to “out of stocks”. It’s no secret that increased sales and reduced costs equals profit for retailers.

How can Electronic Product Codes help Consumers?

Consumers will potentially benefit from the use of EPC technology in a number of ways. Not only will EPC reduce the frustrations of “out of stocks”, it will improve manufacturers ability to recall and remove defective or unsafe merchandise from the store shelves, stockrooms and distribution.

What are the concerns with EPC technology?

Most of the concerns with EPC revolve around privacy. Consumers fear that the RFID technology involved in the EPC will be used to track, identify or otherwise invade their privacy. EPC tags are not typically readable beyond a distance of 10 feet and do not contain, collect or send any information related to people, only products. The information contained on an EPC tag is only a reference code to product information stored on a secured database. Without access to the database, the code is useless.