Tuesday, January 25, 2005

The Tell Tale Sticker

In December I had my dog neutered and 'chipped'. Chipping involves injecting a small tag below the dog's skin in his back. The tag emits a unique identifying number through radio waves that can be read by anyone with the dog and a special device. In theory, if your dog is lost and then picked up by a vet or SPCA, they have the special reading wand and will be able to locate the owner through the unique ID.

Good, but not great. I wanted a GPS enabled implant. If my dog gets lost or stolen, I wanted to be able to visit a website and see a map with his position on it. Better yet, on a PDA. Such a device does not exist. You can get GPS collars, but they only work over a few hundreds yards and can be easily removed. I did some research and found out that in order to get the necessary power and radio transmitter in the package, I would be adding a 5 pound hump to the back of my 12 pound dog. Maybe we are just a year or so away from a fake testicle implant that can be swapped in when the dog is neutered.

This all reminded me of a couple of wine schemes that were floating around in 2000/2001. One idea was to tag a bottle of wine at the time of production with a heat sensitive label. If the wine was exposed to too high of temperature for too long of time, the label would indicate the abuse.

Producers and consumers love this idea. Producers have another method of ensuring the wine they bottle reaches the consumer in top drinking condition. Consumers would love a solid indicator that would help them evaluate the provenance of older wine.

Distributors and retailers hated it. I have visited many wine warehouses - wine storage for wines in commerce in the United States is poor overall. Most wine is not stored in temperature controlled environments. I have seen facilities where wine is stored on racking 5-6 pallets high. In the summer, the top of a warehouse can reach 90-100 degrees. Ever seen a wine distributor truck making deliveries - they rarely have refrigeration.

Recent adoption of RFID by big manufacturers and retailers may bring some exciting possibilities in the future. Eventually wine, along with every other manufactured good, will be tagged with a Radio Frequency ID tag. These tiny transmitters are similar to radio barcodes. Each product has a unique number that can be read by a device in close proximity. But, because the tags broadcast the signal, you don't have wand each bottle.

A wine lover could implement RFID in his cellar. As each bottle comes in or out of the cellar, it would be automatically scanned by a RFID reader. The unique number would indicate that a particular wine is being brought into or removed from a cellar. Instant cellar management without the owner having to do anything.

A retailer can streamline their inventory process dramatically. Every shipment received at the loading dock can be automatically entered into the store's inventory control system. Every bottle out the front door is automatically debited from inventory control. Check out your local wine shop - do they even do inventory control? You would be surprised how many don't!

One problem - the wine industry has never been quick to adopt technology improvements related to commerce. Most wine makers jump on advances in the science or product of wine. But, how many bottles in your collection have a UPC sticker on them?

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