RFID Technology

Why You Need to Plan for RFID Today

Entering into an RFID Project should
be an incremental process that
allows a business to determine if
RFID is right for them.

RFID technology has been gracing the covers of newspapers and magazines throughout the world recently and all of the attention is creating a buzz about the latest technology. Recent standardization and adoption by large retailers like Wal-Mart and Target has also helped generate interest and has many businesses wondering if they should adopt RFID technology as well. Although the interest in RFID is new, the technology has in fact been around longer than bar codes.

Radio Frequency Identification, commonly known as RFID is a data collection method that utilizes low power radio waves to send and receive data between tags and readers. RFID eliminates the need for a direct line of sight to the tag in order to read it, which offers numerous benefits that a bar code is incapable of providing. RFID tags can be active or passive; active tags require an internal power source and passive tags rely on a reader to supply power. RFID tags also come in read-only or read/write varieties. Barcoding Inc. can help you sort through the many options and find what is right for your company or project. RFID tags have far more capability than bar codes and an average RFID tag has a capacity of 2KB of data. RFID readers can simultaneously read and communicate to hundreds of tags within their field and all of this is possible in milliseconds. In addition, unlike bar codes RFID tags are virtually impossible to copy or counterfeit.

Currently RFID technology is capable of increasing efficiency, providing a high level of data integrity, lowering costs, delivering goods faster, increasing accuracy and providing inventory visibility.

But RFID won’t be the end for barcodes; in fact the two technologies can work together to improve business. Companies who already operate with bar codes or other types of auto-ID can use RFID to enhance operations. RFID still has a wealth of untapped potential that integration with other technologies and software can draw upon. Currently RFID technology is capable of increasing efficiency, providing a high level of data integrity, lowering costs, delivering goods faster, increasing accuracy and providing inventory visibility. All of these benefits support supply chain efficiency, something companies strive for and one of the determining factors of success in today’s competitive business environment. Even with all of these benefits, adoption of RFID is moving slowly, but one must remember the business world went through a similar process during the adoption of the bar code.

Widespread adoption of RFID has been limited due to cost, but each year costs and prices tend to decline consistently. The Catch-22 is that in order for considerable cost savings to occur, widespread adoption must take place. Yet the cost of RFID tags shouldn’t always influence the adoption of the technology. While some tags may cost upwards of $50, the return on investment may be ten-fold. Jay Steinmetz, CEO of Barcoding Inc., admits that RFID remains more expensive than bar coding at the front end, but that it quickly pays for itself. In fact, Barcoding Inc. customer Selexzy not only won the 2006 RFID visionary award, but their RFID project was so successful they have plans to push the program out to all locations in the Netherlands by the end of 2007. This is only one success story, but many companies have utilized RFID technology to reduce errors, cut costs, and control inventory with the help of experienced media providers.

Entering into an RFID project should be an incremental process that allows a business to determine if RFID is right for them. Barcoding Inc. recommends starting early, proceeding slowly, and learning step-by-step. RFID technology is one of the fastest growing technologies being adopted today, so adoption of RFID should be pursued as soon as possible before it becomes essential. Companies that begin to integrate RFID into their supply chain now, have the ability to install systems that will provide flexibility to manage the many changes that may occur in the future. In addition, Barcoding Inc. offers evaluation, assessment, planning, and monitoring to ensure that a business is on the fast track to ROI. With implementation of standards, RFID is well on its way to being an essential element of supply chain management. RFID technology and its benefits may become inevitable; therefore it will only increase the probability of success by starting earlier. Barcoding Inc. recommends that you avoid rushed, catch-up deployments necessitated by competitive pressures.

RFID technology has strong potential for growth and companies not willing to explore the opportunities may miss out. According to a study released by In-Stat, a high-tech market research firm, RFID tags are poised to become the most far-reaching wireless technology since the cell phone. If predictions are correct, RFID is something you definitely don’t want to delay.

For more information please contact your Barcoding Inc. representative.

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