EPC Essentials

Getting To Know Electronic Product Code Technology

The Electronic Product Code is a unique number used to identify a specific product.  Similar to the vehicle identification number (VIN) on a car, an EPC is a way to uniquely identify a pallet, case, or individual product.  EPC is often called the next generation bar code.

But the EPC does what the bar code does and more. 

In addition to identifying the manufacturer and the product, the EPC allows the manufacturer to add a serial number to uniquely identify an individual product.  An EPC can be associated with specific product information, such as date of manufacture, origin and destination of shipment.

This allows a manufacturer or a retailer to distinguish products even if the product is the exact same as the one next to it on the shelf.  Each product can be identified and tracked separately.  This eliminates the possibility of incorrectly counting the same item multiple times. 

Like bar codes, EPCs do not carry personally identifiable information.

EPC In Action

EPC works by attaching a small tag, which contains a chip and antenna, to a product.  The chip is a memory chip similar to what is found in other electronic devices, such as computers and MP3 players, to store information.  In this case, the information stored is the Electronic Product Code.  EPC uses radio frequency identification (RFID) to send information about products to store computer systems while the product is in the store. EPC tags only send product information data when prompted by a special reader found in the store. 

In order to get information from an EPC tag, the tag needs to be read electronically using RFID rather than with a beam of light as is done with bar codes.  When the EPC tag moves into range of an RFID reader, the radio waves sent by the reader allow the EPC tag to send the code stored on it. The EPC has no power source and can only transmit its unique number when it is less than about 10 feet from a reader that activates the tag.  The power – or strength – of readers is strictly regulated by the Federal Communications Commission.  The actual distance from which an EPC tag can be read may be shorter because barriers such as shopping bags and other factors such as the presence of metal materials or nearness of walls or other obstructions weaken a reader’s signal.

It is important to remember that EPC is one of several RFID applications. RFID technology has been in use since WWII and common applications include vehicle remote access and automatic toll payments.

Protecting Consumer Privacy

An EPC tag contains no personally identifiable information. The EPC has no power source and can only transmit its unique number when it is less than about 10 feet from a reader that activates the tag.  The actual distance from which an EPC tag can be read may be shorter because barriers such as shopping bags and other factors such as the presence of metal materials or nearness of walls or other obstructions weaken a reader’s signal.

EPCglobal, a neutral, not-for-profit organization consisting of manufacturers, technology solution providers, and retailers, is responsible for developing standards for EPC. The EPCglobal “Guidelines on EPC for Consumer Products” promote consumer notice, education, and choice about the technology and include consumer privacy protections. Licensing agreements for the EPC specifically prohibit its use for tracking or identifying people, except in very specific, transparent patient and troop safety applications.

Benefits For Business and Consumers

EPC has the potential to help us all. It helps businesses improve supply chain efficiencies and visibility, which benefits consumers by providing improved product availability, speed of service, and quality assurance. EPC helps prevent fake goods from reaching consumers by tracking products from its source and also helps manufacturers’ ability to quickly and effectively recall damaged or defective products. The EPC allows retailers to track inventory more effectively, reorder products more efficiently and get the products consumers want on the shelves at the right time.  Possible EPC benefits include:

• Improved Product Availability
  • EPC helps stores keep better track of inventory so items can be restocked faster
  • Products are on the shelf when you want them
• Faster Service
  • EPC can help you easily find products in the store
  • In the future, EPC can help speed check out
  • In the future, EPC can allow for faster returns
• Quality Assurance
  • EPC can help protect you against counterfeit products including medicines, clothing, toys and electronics
  • EPC can help make it easier to check how and when products move from manufacture to retail shelf.
  • EPC can be used to monitor the freshness of goods with expiration dates
  • EPC can provide a faster way to recall defective products

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