RFID chips store data for transmission to nearby receivers for tracking inventories across the retail supply chain. Unlike traditional barcodes, RF tags can be read from a distance, making them very attractive to retailers, shippers, logistics firms and manufacturers.

At the New York show, Microsoft unveiled its Smarter Retailing initiative, a framework for developing standards-based tools for the retail sector. The initiative has the backing of 20 partners including Accenture Ltd, which has already developed complementary systems and tools that allow consumers to scan and pay for items as they are selected, instead of waiting in a checkout line.

Meanwhile, SAP AG announced the planned mid-2004 release of an RFID middleware package for capturing data and automating inventory processes. The product, which is now in pilot phase, is built on the SAP Web Application Server, and incorporates several other SAP modules. SAP is emerging as a surprising front-runner in RFID application software. At the company’s TechEd show last autumn, it used RFID chips to store information on attendee badges.

Much of the enthusiasm of IT vendors for RFID is driven by retailing giant Wal-Mart Stores, which last year made it mandatory for its top 100 suppliers to begin RF-tagging shipments by January 2005.

This article is based on material originally published by ComputerWire.