Pros and Cons of RFID Know-how
I. RFID Advantages
Radio Frequency Identification offers a valuable service that’s capable of revolutionizing the way companies track products. There are many benefactors of this technology: the army, retailers, suppliers, consulting companies, producers of the technology, and consumers. RFID supplies firms with a better various to bar-coding because no line-of-sight is needed to read a pallet, a carton, or a product with a RFID tag. RFID tags also comprise info on the product that is easily readable and accessible for the reader. RFID may even begin to automate firm’s provide chain, reducing labor prices, human error and time spent checking in products.
In 2005, manufacturers and suppliers requesting new bids from the army must be RFID compliant on 4 completely different levels: packaged operational rations, clothing, tools, and weapon system repair components and components. The military requires that each one cartons and pallets are shipped with a Military Shipping Label which displays shipping data. The Department of Defense has created the RFID Navy Compliance Resolution as a manner to assist suppliers and manufacturers meet the navy’s new requirements for RFID. The program is run by Avery Dennison Retail Data Companies, and so they have been commissioned by the RFID Army Compliance Solution. Avery Dennison Retail Info Providers sells the RFID tags to firms which have to be affixed near the Army Shipping Labels to adjust to Division of Protection regulations.
The U.S. navy is saving an unlimited amount of cash by utilizing active and passive RFID systems. By using RFID for communication and transportation techniques in Iraq and Afghanistan, the army is able to diagnose and fix issues much faster than before. The implementation of RFID in just this area will save the military close to half one million dollars this year. The U.S. government has contracted IBM to do analysis on the current RFID being used at the moment within the military and the potential future functions for RFID within the military. The navy has been successful in creating higher visibility throughout their supply chain growing their productivity and stability.
Retailers and different firms which have a demanding provide chain can gain an advantage on the field through the use of RFID in the provide chain. By demanding that every one levels of their supply chain be RFID capable is a sizable investment. The productivity increase that follows the initial investment and implementation for firms can pay for his or her investment. Wal-Mart was the primary retailer to make use of RFID in their distribution centers and warehouses, prompting many companies to observe in their footsteps as soon as Wal-Mart’s success was realized.
RFID could be very profitable with retail companies because it improves productiveness, saves on human labor costs, and provides corporations real-time visibility with all their products. RFID tags use an Digital Product Code (EPC) which is an upgrade and a alternative for the Universal Product Code (UPC) system. “EPC has a ninety six-bit code that has digits to determine the producer, product category and the individual item. Producers receive registration numbers & assign them to products. Every number is unique to a given item.”
The cost of a tag is wherever between twenty-5 to fifty cents. In the subsequent five to ten years it may very well be reduced to five cents per tag. At some point within the close to future tags might fall to one cent tempting companies to use RFID tags on each product in a store. Wal-Mart says that since their stores now have RFID, it makes it easier to maintain store shelves stocked permitting workers to work together with customers.
Target was able to save lots of on their funding for implementing RFID, following in Wal-Mart’s footsteps as Wal-Mart had already paved the way and suffered the pitfalls of implementing a new technology. In addition to the decrease implementation prices, many of Target’s suppliers had already begun preparing for the swap over to RFID assuming Goal would comply with Wal-Mart. Target as a big retailer knows how important it’s to be able to provide real-time information on pallets, cartons and shipments up and down-stream by means of their supply chain.
A break-through in RFID technology was made by Intermec, Inc. in Could of 2006, with new rugged and reusable RFID tags. These tags might be written 1000’s of occasions; it will probably deal with hazardous chemical exposure, and withstands temperatures from -50 degrees Fahrenheit to 250 degrees Fahrenheit. In October of 2006, Intermec launched a new version of the rugged, reusable rfid animal tag tag, together with extensive-band antenna that can be used on any surface in any part of the world.